Copper and zinc producers are selling their smelting by-product, sulphuric acid, much below their production cost, as dumping of the chemical by Japanese and Korean producers has created an over-supply, they complain. The acid is used by the fertiliser and detergent industries.
An industry lobby led by Sterlite Industries, Hindustan Zinc and Hindalco Industries has demanded anti-dumping duty on the chemical, which has not been approved by the government.
“Government is not approving anti-dumping duty under the pretext of protecting the fertiliser industry,” said a person familiar with the development. He claimed the contribution of the chemical to fertiliser production cost was minuscule.
The chemical is currently sold at the price of $3 per tonne. Usually, the price of sulphuric acid is a third of the price of sulphur, which is being sold at $60-70 a tonne. This should have meant the chemical is priced at $20-25 a tonne.
According to media reports, China is also considering anti-dumping duty on the chemical, as it is a similar victim. This will worsen the situation for Indian producers.
Source : Business Standard