Chemical stocks, including SRF, Navin Fluorine International and Stallion India Fluorochemicals, gained in early trade on Wednesday on reports of likely extension of anti-dumping duty on Chinese HFC blends.
Stallion India shares jumped as much as 4.04%, while SRF shares gained nearly 2% and Navin Fluorine shares rose 1.4%.
The Directorate General of Trade Remedies (DGTR) recommended extending the anti-dumping duty on Hydrofluorocarbon (HFC) blends imported from China for another five years.
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The proposed duty ranges from $1,553 to $2,251 per tonne and applies to R-407 and R-410 refrigerant blends. However, the final decision on the extension will be taken by the Central government.
HFC blends are widely used in air conditioners, refrigeration systems and heat pumps, with SRF being a key domestic producer.
The existing anti-dumping duty on HFC blends from China was imposed in December 2021. The latest review was initiated following a petition filed by SRF, with the DGTR concluding that there is a risk of renewed dumping if the existing duty is withdrawn.
If the government approves the extension, analysts expect the move to benefit domestic refrigerant manufacturers, including SRF and other players in the segment, by providing continued protection from low-priced Chinese imports.
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