Indonesia's antidumping duties on nylon film may weaken Asian nylon-6 demand

Indonesia will impose antidumping duties on imports of nylon film products originating from China, Thailand and Taiwan, according to a notice issued by the Komite Anti Dumping Indonesia, a part of Indonesia's Ministry of Finance, on March 12. Market sources anticipate that it could exert further pressure on the already softened demand for upstream polymer nylon-6.

The duties come into effect March 25 and will be valid for four years on imports of nylon film products, under HS codes 3920.92.10 and 3920.92.99.

The proposed duties on China are Rupiah 1,254-8,045/kg, on Thailand at Rupiah 4,351-16,473/kg and on Taiwan at Rupiah 31,510/kg, according to the notice.

"The [nylon-6] market was already not good, and now it's getting worse," a China-based producer said.

"Margins have been fairly low all the while, and these duties will be a huge blow for exporters," a Taiwan-based market source said.

Nylon film is widely used in various flexible packaging and is downstream of nylon-6. Film and coating applications are the second-largest market for nylon-6 after automotive applications, according to S&P Global Market Intelligence data.

Source: KADI

KADI initiated its antidumping investigation against imports of nylon film products in March 2023. The investigation's results showed that products originating from the aforementioned countries had harmed the Indonesian domestic industry.

Platts, part of S&P Global Commodity Insights, assessed FOB China nylon-6 resin prices for bright and semi-dull grades stable day over day at $1,468/mt March 13, within tradable indications heard at $1,444-$1,493/mt.

The Platts-assessed price for the full dull grade was unchanged day over day at $1,518/mt March 13, within tradable indications heard at $1,494-$1,543/mt.