The traded basket of commodities between China and India is slowly but surely changing. Until November last year, soda ash otherwise known as washing soda or soda carbonate was exported from China to India. China being the largest manufacturer of soda ash, was the most preferred nation for the organic chemical.

In November 2009, in order to safeguard domestic producers from market disruptions caused by the increased imports from the People’s Republic of China, New Delhi imposed a 20 percent anti-dumping duty on soda ash imports from China. As a result, Sinochem, China’s largest petrochemicals trader and largest exporter of soda ash to India was impacted.

According to sources in international trade that Inchin Closer spoke to, since December 2009, imports of soda ash from China have been tapering and have completely halted now. In order to meet demand, India is now importing soda ash from Turkey, at a much higher price. During the year 2006-07, India imported 44,893 Million tons of soda ash from China, by 2008-09 it peaked at 108,650 MT. Soda ash is used in the production of glass and detergents as well as an acidity regulator in swimming pools and food preparations.

Besides, soda ash, India has also expected to imposed an anti-dumping duty against the import of  seamless pipes from China. The US and EU have already implemented anti-dumping duties against Chinese manufacturers of seamless pipes that are killing the domestic industry. Seamless pipes are formed by drawing a solid billet over a piercing rod to create a hollow shell. Seamless pipes provide the most reliable pressure retaining characteristics, and are often more easily available than welded pipes. They are most often used in petroleum and other chemical plants, refineries and other industrial manufacturing industries.