Thailand launches safeguard probe into PP imports
Thailand’s Department of Foreign Trade has launched a safeguard investigation into PP imports, following complaints from domestic producers
Thailand’s Department of Foreign Trade has launched a safeguard investigation into PP imports, following complaints from domestic producers that surging inflows have caused material injury to the local industry.
The probe, approved on August 8 by the Committee for Consideration of Safeguard Measures under the 2007 Safeguard Measures Against Increased Imports Act, was initiated after petitions from HMC Polymers Co., Thai Polyethylene Co., and IRPC Public Co. Together, the three firms account for more than a quarter of Thailand’s PP production capacity.
The investigation covers PP classified under three particular HS codes which are namely 3902.10 (homo-PP), 3902.30 (PP Copolymer) and 3902.90 (PP others) in the Customs Tariff Decree B.E. 2530 (1987) and their subsequent amendments as per below:
|
Affected HS codes |
Description |
|
3902.10.30.001 |
Polymers of propylene or of other olefins, in primary forms. In dispersion. Used in the manufacture of telephonic or electric wire |
|
3902.10.30.090 |
Polymers of propylene or of other olefins, in primary forms. In dispersion. Other (KGM) |
|
3902.10.40.001 |
Polymers of propylene or of other olefins, in primary forms. Granules, pellets, beads, flakes, chips and similar forms |
|
3902.10.40.090 |
Polymers of propylene or of other olefins, in primary forms. Granules, pellets, beads, flakes, chips and similar forms |
|
3902.10.90.001 |
Polymers of propylene or of other olefins, in primary forms. Other. Used in the manufacture of telephonic or electric wire (KGM) |
|
3902.10.90.090 |
Polymers of propylene or of other olefins, in primary forms. Other. Other (KGM) |
|
3902.30.30.001 |
Polymers of propylene or of other olefins, in primary forms. In the form of liquids or pastes. Used in the manufacture of telephonic or electric wire (KGM) |
|
3902.30.30.090 |
Polymers of propylene or of other olefins, in primary forms. In the form of liquids or pastes. Other (KGM) |
|
3902.30.90.001 |
Polymers of propylene or of other olefins, in primary forms. Other. Used in the manufacture of telephonic or electric wire (KGM) |
|
3902.30.90.090 |
Polymers of propylene or of other olefins, in primary forms. Other. Other (KGM) |
|
3902.90.90.000 |
Polymers of propylene or of other olefins, in primary forms. Other. Other (KGM) |
|
* Description based on Thai Customs website: https://www.customs.go.th/statistic_report.php?show_search=1&s=r7XGifz0LPkLZFOp |
|
Data submitted in the petition show that Thailand’s homo-PP imports rose 71% over three years, from 228,365 tons in 2020 to 390,583 tons in 2023. The upward momentum has continued in 2024, with volumes in the first nine months climbing 18% year on year to 351,764 tons.
Officials said the evidence presented pointed to declining sales, reduced capacity utilization, and sustained financial losses among domestic producers, with the surge in imports—particularly from China—eroding competitiveness.
|
Top 5 homo-PP exporters to Thailand |
2023 |
2024 |
2024 market share % |
Growth Y.O.Y (%) |
|
Tons |
Tons |
|||
|
TOTAL |
270,137 |
323,316 |
100% |
19.7% |
|
China |
50,256 |
110,291 |
34.1% |
119.5% |
|
South Korea |
42,237 |
52,905 |
16.4% |
25.3% |
|
Saudi Arabia |
46,714 |
32,054 |
9.9% |
-31.4% |
|
Malaysia |
12,216 |
24,998 |
7.7% |
104.6% |
|
Vietnam |
29,073 |
22,952 |
7.1% |
-21.1% |
|
Top 5 PP Copo exporters to Thailand |
2023 |
2024 |
2024 market share % |
Growth Y.O.Y (%) |
|
Tons |
Tons |
|||
|
TOTAL |
103,186 |
115,901 |
100% |
12.3% |
|
Singapore |
33,810 |
35,491 |
30.6% |
5.0% |
|
South Korea |
21,632 |
20,866 |
18.0% |
-3.5% |
|
China |
6,169 |
12,419 |
10.7% |
101.3% |
|
Japan |
11,966 |
11,374 |
9.8% |
-4.9% |
|
Saudi Arabia |
9,741 |
8,352 |
7.2% |
-14.3% |
|
Top 5 PP Others exporters to Thailand |
2023 |
2024 |
2024 market share % |
Growth Y.O.Y (%) |
|
Tons |
Tons |
|||
|
TOTAL |
17,748 |
17,819 |
|
|
|
UAE |
4,777 |
3,614 |
20.3% |
-24.3% |
|
South Korea |
3,624 |
3,019 |
16.9% |
-16.7% |
|
Japan |
2,075 |
2,834 |
15.9% |
36.6% |
|
China |
2,114 |
2,201 |
12.4% |
4.1% |
|
Malaysia |
1,662 |
1,889 |
10.6% |
13.7% |
However, Thailand remains a net exporter of PP. In 2024, the country exported 928,048 tons of homo-PP and 314,028 tons of PPBC, compared with import volumes of 323,316 tons, and 115,901 tons, respectively—nearly three times higher. This imbalance raises questions over whether the proposed safeguard measures would channel more output to the domestic market or instead lead to a cutback in exports.
The outcome of the investigation will determine whether safeguard duties are imposed to curb imports, a decision that could reshape PP trade flows in Southeast Asia and recalibrate Thailand’s balance between exports and local supply.
Written: Farid Muzaffar