India has initiated an anti-dumping investigation into imports of caprolactam originating in or exported from China, Russia, Thailand and the United States, following an application from Gujarat State Fertilizers & Chemicals Ltd. (GSFC). The Directorate General of Trade Remedies (DGTR) has set April 2025 to March 2026 as the period of investigation, while the injury assessment covers FY2022-23, FY2023-24, FY2024-25 and the investigation period.
Caprolactam, also known as 6-Hexanelactam, is a key feedstock for Nylon-6 production. Nylon-6 is subsequently used in nylon filament yarn, tyre cord fabric, engineering plastics and films, making caprolactam an important upstream product for India’s synthetic fibre and engineering plastics industries.
Domestic capacity versus actual production
India has historically had two domestic caprolactam producers, GSFC and Fertilisers and Chemicals Travancore (FACT). Their combined installed capacity has been around 120,000 tonnes per year, comprising approximately 70,000 tonnes at GSFC and 50,000 tonnes at FACT.
However, actual production has varied significantly from installed capacity. FACT resumed caprolactam production in FY2022-23 and FY2023-24 but subsequently stopped production. DGTR states that FACT remained shut during the current period of investigation, leaving GSFC as the only domestic producer.
India Caprolactam Market
Unit: ‘000 tonnes (KT)
| Financial Year | Installed Capacity | Production | Imports | Exports | Apparent Demand* | Import Dependency | Flakes CIF Nava Sheva (RUSSIA) (USD per MT) | Flakes Ex Shanghai (USD per MT) |
| 2017-18 | 120.00 | 86.00 | 58.40 | 0.05 | 144.40 | 40.5% | 1869.73 | 1896.54 |
| 2018-19 | 120.00 | 92.60 | 66.50 | 0.08 | 159.00 | 41.8% | 2133.69 | 2192.12 |
| 2019-20 | 120.00 | 84.10 | 68.00 | 0.26 | 151.90 | 44.8% | 1606.45 | 1680.00 |
| 2020-21 | 120.00 | 80.40 | 57.60 | 6.23 | 131.80 | 43.7% | 1144.55 | 1342.12 |
| 2021-22 | 120.00 | 108.20 | 60.10 | 0.03 | 168.20 | 35.7% | 1883.11 | 2040.75 |
| 2022-23 | 120.00 | 129.60 | 22.80 | 0.06 | 152.30 | 14.9% | 1987.32 | 2002.50 |
| 2023-24 | 120.00 | 114.60 | 21.00 | 0.11 | 135.50 | 15.5% | 1577.94 | 1673.85 |
| 2024-25 | 120.00 | 81.80 | 61.70 | 0.17 | 143.30 | 43.1% | 1655.50 | 1692.79 |
| 2025-26 | 120.00 | 79.20 | 61.36 | 0.15 | 140.41 | 43.7% | 1344.02 | 1292.02 |
Source: Price Watch™ Apparent demand = domestic production + imports − exports. It is an estimate of product available for domestic use and does not account for inventory changes.
The market data show a clear shift in India’s supply balance. Import dependence was relatively low in FY2022-23 and FY2023-24, when domestic production was high. In FY2024-25, however, production fell sharply to about 81.8 kt while imports increased to around 61.7 kt. Apparent demand consequently reached approximately 143.3 kt, with imports accounting for about 43% of apparent consumption.
DGTR cites rising imports and injury to domestic industry
Against this backdrop, GSFC sought trade protection, alleging that low-priced imports were affecting the domestic industry. DGTR has found prima facie evidence that imports from the four subject countries increased in absolute terms and relative to Indian production and consumption.
The authority also identified price undercutting, with landed import prices below the domestic industry’s selling prices. GSFC’s production and domestic sales declined, while the market share of subject-country imports increased. DGTR further observed deterioration in profitability, cash profits and return on capital employed.
These are findings at the initiation stage and should not be interpreted as a final determination of dumping or injury.
Implications for India’s Nylon-6 chain
The investigation comes as India’s domestic caprolactam supply base remains concentrated. With FACT out of production during the investigation period, GSFC is the sole domestic producer identified by DGTR, increasing the importance of imports in balancing the market.
Any eventual anti-dumping duty could strengthen the position of domestic caprolactam production but could also increase feedstock costs for downstream Nylon-6 producers. Conversely, without trade restrictions, imported caprolactam is likely to remain an important part of India’s supply mix.
The DGTR investigation therefore has implications beyond the caprolactam market itself, extending into India’s broader Nylon-6 value chain. Its final outcome will depend on the authority’s assessment of dumping, injury and the causal link between the two.
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