COMMISSION IMPLEMENTING REGULATION (EU) 2021/1812
of 14 October 2021
imposing a provisional anti-dumping duty on imports of certain graphite electrode systems originating in the People’s Republic of China
1.
PROCEDURE
1.1.
Initiation
1.2.
Registration
1.3.
Interested parties
1.4.
Comments on initiation
1.5.
Sampling
1.5.1.
Sampling of Union producers
1.5.2.
Sampling of importers
1.5.3.
Sampling of exporting producers in the PRC
1.6.
Individual examination
1.7.
Questionnaire replies and verification visits
1.8.
Investigation period and period considered
2.
PRODUCT CONCERNED AND LIKE PRODUCT
2.1.
Product concerned
2.2.
Like product
2.3.
Claims regarding product scope and product exclusion request
3.
DUMPING
3.1.
Procedure for the determination of the normal value under Article 2(6a) of the basic Regulation
3.2.
Application of Article 18 of the basic Regulation
3.3.
Normal value
3.3.1.
Existence of significant distortions
3.3.1.1.
Introduction
3.3.1.2.
Significant distortions affecting the domestic prices and costs in the PRC
3.3.1.3.
Significant distortions according to Article 2(6a)(b), first indent of the basic Regulation: the market in question being served to a significant extent by enterprises which operate under the ownership, control or policy supervision or guidance of the authorities of the exporting country
3.3.1.4.
Significant distortions according to Article 2(6a)(b), second indent of the basic Regulation: State presence in firms allowing the state to interfere with respect to prices or costs
3.3.1.5.
Significant distortions according to Article 2(6a)(b), third indent of the basic Regulation: public policies or measures discriminating in favour of domestic suppliers or otherwise influencing free market forces
3.3.1.6.
Significant distortions according to Article 2(6a)(b), fourth indent of the basic Regulation: the lack, discriminatory application or inadequate enforcement of bankruptcy, corporate or property laws
3.3.1.7.
Significant distortions according to Article 2(6a)(b), fifth indent of the basic Regulation: wage costs being distorted
3.3.1.8.
Significant distortions according to Article 2(6a)(b), sixth indent of the basic Regulation: access to finance granted by institutions which implement public policy objectives or otherwise not acting independently of the State
3.3.1.9.
Systemic nature of the distortions described
3.3.1.10.
Conclusion
3.3.2.
Representative country
3.3.2.1.
General remarks
3.3.2.2.
A level of economic development similar to China and production of the product under investigation
3.3.2.3.
Availability of relevant public data in the representative country
3.3.2.4.
Level of social and environmental protection
3.3.2.5.
Conclusion
3.3.3.
Sources used to establish undistorted costs for factors of production
Factors of production of graphite electrodes |
|||
Factor of Production |
Commodity Code |
Undistorted value (RMB) |
Unit of measurement |
Raw materials |
|||
Petroleum coke (calcined) |
2713 12 |
5 240 |
Tonne |
Petroleum coke (non calcined) |
2713 11 |
432 |
Tonne |
Pitch from coal tar |
2708 10 |
8 640 |
Tonne |
Pitch coke from coal tar |
2708 20 |
3 917 |
Tonne |
Coke and semi-coke of coal |
2704 00 |
1 884 |
Tonne |
Coal asphalt |
2715 00 |
6 113 |
Tonne |
Coal |
2701 12 |
881 |
Tonne |
Graphite fragments |
3801 90 |
13 048 |
Tonne |
Consumables |
|||
Labour |
|||
Labour wages in manufacturing sector |
[N/A] |
13,37 |
Hours |
Energy |
|||
Electricity |
[N/A] |
1 138 |
kWh |
Natural Gas |
[N/A] |
0,70 |
m3 |
By product/waste |
|||
Graphite scrap |
3801 90 |
13 048 |
Tonne |
Silicon carbide scrap |
2849 20 |
8 055 |
Tonne |
3.3.3.1.
Raw materials used in the production process
3.3.3.2.
Labour
3.3.3.3.
Electricity
3.3.3.4.
Natural gas
3.3.3.5.
Waste
3.3.3.6.
Manufacturing overhead costs, SG&A, profits and depreciation
3.3.4.
Calculation of normal value
3.4.
Export price
3.5.
Comparison
3.6.
Dumping margins
Company |
Provisional dumping margin |
Fangda Group composed of 4 producers |
24,5 % |
Liaoning Dantan Technology Group Co., Ltd. |
17,5 % |
Nantong Yangzi Carbon Co., Ltd. |
24,5 % |
Company |
Provisional dumping margin |
Fangda Group composed of 4 producers |
24,5 % |
Liaoning Dantan Technology Group Co., Ltd. |
17,5 % |
Nantong Yangzi Carbon Co., Ltd. |
24,5 % |
Other cooperating companies |
21,6 % |
All other companies |
66,5 % |
4.
INJURY
4.1.
Definition of the Union industry and Union production
4.2.
Union consumption
|
2017 |
2018 |
2019 |
Investigation period |
||
Total Union consumption |
175 738 |
181 070 |
153 706 |
132 454 |
||
Index |
100 |
103 |
87 |
75 |
||
Source: Eurostat (Comext) and Union industry Note: An adjustment was made to imports under TARIC code 8545 11 00 90 to exclude graphite electrodes with an apparent density of less than 1,5 g/cm3 or an electrical resistance of more than 7,0 μ.Ω.m. This adjustment consisted in withdrawing 7,5 % of the total export in volume and 3,3 % of the total export in value. This adjustment followed the methodology used in the complaint, which was based on the share of RP graphite electrodes in the worldwide consumption of graphite electrodes (excluding China) for the year 2019 (*). In other words, 7,5 % of the total volume of electrodes consumed outside China were RP electrodes in 2019. 3,3 % of the total value of electrodes consumed outside China were RP electrodes in 2019.
|
4.3.
Imports from the country concerned
4.3.1.
Volume and market share of the imports from the country concerned
|
2017 |
2018 |
2019 |
Investigation period |
Volume of imports from China |
42 256 |
43 180 |
45 932 |
47 429 |
Index |
100 |
102 |
109 |
112 |
Market share (%) |
24,0 |
23,8 |
29,9 |
35,8 |
Index |
100 |
99 |
124 |
149 |
Source: Eurostat(Comext), Union industry. |
4.3.2.
Prices of the imports from the country concerned and price undercutting
|
2017 |
2018 |
2019 |
Investigation period |
China |
4 152 |
9 710 |
4 845 |
2 077 |
Index |
100 |
234 |
117 |
50 |
Source: Eurostat (Comext). |
4.4.
Economic situation of the Union industry
4.4.1.
General remarks
4.4.2.
Macroeconomic indicators
4.4.2.1.
Production, production capacity and capacity utilisation
|
2017 |
2018 |
2019 |
Investigation period |
Production volume (tonnes) |
233 538 |
250 597 |
219 526 |
164 460 |
Index |
100 |
107 |
94 |
70 |
Production capacity (tonnes) |
255 500 |
283 500 |
294 900 |
294 900 |
Index |
100 |
111 |
115 |
115 |
Capacity utilisation (%) |
91,4 |
88,4 |
74,4 |
55,8 |
Index |
100 |
97 |
81 |
61 |
Source: Questionnaire replies from the sampled Union producers. |
4.4.2.2.
Sales volume and market share
|
2017 |
2018 |
2019 |
Investigation period |
Sales volume on the Union market (tonnes) |
105 520 |
118 025 |
91 949 |
70 970 |
Index |
100 |
112 |
87 |
67 |
Market share (%) |
60,0 |
65,2 |
59,8 |
53,6 |
Index |
100 |
109 |
100 |
89 |
Source: Union industry. |
4.4.2.3. Growth
4.4.2.4. Employment and productivity
|
2017 |
2018 |
2019 |
Investigation period |
Number of employees |
1 034 |
1 164 |
1 150 |
1 102 |
Index |
100 |
113 |
111 |
107 |
Productivity (tonnes/employee) |
226 |
215 |
191 |
149 |
Index |
100 |
95 |
85 |
66 |
Source: Union industry. |
4.4.2.5.
Magnitude of the dumping margin and recovery from past dumping
4.4.3.
Microeconomic indicators
4.4.3.1.
Prices and factors affecting prices
|
2017 |
2018 |
2019 |
Investigation period |
Average unit sales price in the Union on the total market (EUR/tonne) |
2 221 |
8 780 |
9 900 |
5 993 |
Index |
100 |
395 |
446 |
270 |
Unit cost of production (EUR/tonne) |
2 071 |
4 095 |
5 454 |
5 016 |
Index |
100 |
198 |
263 |
242 |
Source: Questionnaire replies from the sampled Union producers. |
4.4.3.2.
Labour costs
|
2017 |
2018 |
2019 |
Investigation period |
Average labour costs per employee (EUR) |
83 705 |
91 784 |
89 456 |
84 780 |
Index |
100 |
110 |
107 |
101 |
Source: Questionnaire replies from the sampled Union producers. |
4.4.3.3.
Inventories
|
2017 |
2018 |
2019 |
Investigation period |
Closing stocks (tonnes) |
6 142 |
6 424 |
9 114 |
8 163 |
Index |
100 |
105 |
148 |
133 |
Closing stocks as a percentage of production |
4,8 % |
4,9 % |
8,3 % |
8,6 % |
Index |
100 |
103 |
174 |
180 |
Source: Questionnaire replies from the sampled Union producers. |
4.4.3.4. Profitability, cash flow, investments, return on investments and ability to raise capital
|
2017 |
2018 |
2019 |
Investigation period |
Q4 of the investigation period |
Profitability of sales in the Union to unrelated customers (% of sales turnover) |
8,0 |
52,7 |
43,8 |
16,1 |
2,6 |
Index |
100 |
658 |
547 |
201 |
33 |
Cash flow (EUR) |
28 215 108 |
488 291 957 |
380 447 375 |
60 964 690 |
–22 330 357 |
Index |
100 |
1 731 |
1 348 |
216 |
– 356 |
Investments (EUR) |
12 662 440 |
30 259 283 |
21 600 910 |
18 670 327 |
6 542 529 |
Index |
100 |
239 |
171 |
147 |
208 (*) |
Return on investments (%) |
17,8 |
552,4 |
366,5 |
–3,9 |
–32,6 |
Index |
100 |
3 100 |
2 057 |
–22 |
– 183 |
Source: Questionnaire replies from the sampled Union producers. (*) On an annual basis. |
4.4.4.
Conclusion on injury
5.
CAUSATION
5.1.
Effects of the dumped imports
5.2.
Effects of other factors
5.2.1.
The COVID-19 pandemic
5.2.2.
The end of the 2017–2019 peak period
5.2.3.
The obsolescence of the Union industry
5.2.4.
Imports from third countries
Country |
|
2017 |
2018 |
2019 |
Investigation period |
India |
Volume (tonnes) |
5 662 |
6 212 |
3 700 |
2 211 |
|
Index |
100 |
110 |
65 |
39 |
|
Market share (%) |
3,2 |
3,4 |
2,4 |
1,7 |
|
Average price (EUR) |
2 339 |
13 709 |
10 018 |
4 072 |
|
Index |
100 |
586 |
428 |
174 |
Mexico |
Volume (tonnes) |
2 865 |
1 379 |
12 |
896 |
|
Index |
100 |
48 |
0,4 |
31 |
|
Market share (%) |
1,6 |
0,8 |
0 |
0,7 |
|
Average price (EUR) |
2 218 |
2 525 |
3 344 |
3 976 |
|
Index |
100 |
114 |
151 |
179 |
Russia |
Volume (tonnes) |
4 118 |
5 244 |
8 092 |
5 485 |
|
Index |
100 |
127 |
197 |
133 |
|
Market share (%) |
2,3 |
2,9 |
5,3 |
4,1 |
|
Average price (EUR) |
2 382 |
9 055 |
6 879 |
3 578 |
|
Index |
100 |
380 |
289 |
150 |
USA |
Volume (tonnes) |
9 689 |
3 359 |
1 860 |
2 950 |
|
Index |
100 |
35 |
19 |
30 |
|
Market share (%) |
5,5 |
1,9 |
1,2 |
2,2 |
|
Average price (EUR) |
2 398 |
7 997 |
11 376 |
5 025 |
|
Index |
100 |
333 |
474 |
210 |
Other third countries |
Volume (tonnes) |
5 629 |
3 671 |
2 162 |
2 514 |
|
Index |
100 |
65 |
38 |
45 |
|
Market share (%) |
3,2 |
2,0 |
1,4 |
1,9 |
|
Average price (EUR) |
2 427 |
7 435 |
9 057 |
4 285 |
|
Index |
100 |
306 |
373 |
177 |
Total of all third countries except the country concerned |
Volume (tonnes) |
27 962 |
19 866 |
15 826 |
14 055 |
|
Index |
100 |
71 |
57 |
50 |
|
Market share (%) |
15,9 |
11,0 |
10,3 |
10,6 |
|
Average price (EUR) |
2 371 |
9 579 |
8 436 |
4 111 |
|
Index |
100 |
404 |
356 |
173 |
Source: Eurostat(Comext). |
5.2.5.
Export performance of the Union industry
|
2017 |
2018 |
2019 |
Investigation period |
Export volume (tonnes) |
134 311 |
132 850 |
124 460 |
102 222 |
Index |
100 |
99 |
93 |
76 |
Average price (EUR/tonne) |
2 377 |
8 134 |
9 186 |
5 660 |
Index |
100 |
342 |
386 |
238 |
Source: Questionnaire replies from the sampled Union producers and the Union industry. |
5.2.6.
Consumption
5.2.7.
Captive use
5.3.
Conclusion on causation
6.
UNION INTEREST
6.1.
Interest of the Union industry
6.2.
Interest of unrelated importers and traders
6.3.
Interest of users
6.4.
Other factors
6.5.
Conclusion on Union interest
7.
LEVEL OF MEASURES
7.1.
Underselling margin
Company |
Dumping margin |
Underselling margin |
Fangda group composed of four producers: Fangda Carbon New Material Co., Ltd ; Fushun Carbon Co., Ltd; Chengdu Rongguang Carbon Co., Ltd; Hefei Carbon Co., Ltd |
24,5 % |
139,7 % |
Liaoning Dantan Technology Group Co., Ltd |
17,5 % |
99,5 % |
Nantong Yangzi Carbon Co., Ltd |
24,5 % |
150,5 % |
Other cooperating companies |
21,6 % |
123,6 % |
All other companies |
66,5 % |
159,3 % |
7.2.
Raw material distortions
8.
PROVISIONAL ANTI-DUMPING MEASURES
Company |
Provisional dumping margin |
Fangda group composed of four producers: Fangda Carbon New Material Co., Ltd; Fushun Carbon Co., Ltd; Chengdu Rongguang Carbon Co., Ltd; Hefei Carbon Co., Ltd |
24,5 % |
Liaoning Dantan Technology Group Co., Ltd |
17,5 % |
Nantong Yangzi Carbon Co., Ltd |
24,5 % |
Other cooperating companies |
21,6 % |
All other companies |
66,5 % |
9.
INFORMATION AT PROVISIONAL STAGE
10.
FINAL PROVISIONS
Article 1
Country |
Company |
Provisional anti-dumping duty |
TARIC additional code |
PRC |
Fangda group composed of four producers: Fangda Carbon New Material Co., Ltd; Fushun Carbon Co., Ltd; Chengdu Rongguang Carbon Co., Ltd; Hefei Carbon Co., Ltd |
24,5 % |
C731 |
PRC |
Liaoning Dantan Technology Group Co., Ltd. |
17,5 % |
C732 |
PRC |
Nantong Yangzi Carbon Co., Ltd. |
24,5 % |
C733 |
PRC |
Other cooperating companies listed in Annex |
21,6 % |
|
PRC |
All other companies |
66,5 % |
C999 |
Article 2
Article 3
ANNEX
Cooperating exporting producers not sampled
Country |
Name |
TARIC additional code |
People’s Republic of China |
ANSHAN CARBON CO., LTD |
C 735 |
People’s Republic of China |
ASAHI FINE CARBON DALIAN CO., LTD |
C 736 |
People’s Republic of China |
DALIAN JINGYI CARBON CO., LTD |
C 738 |
People’s Republic of China |
DATONG YU LIN DE GRAPHITE NEW MATERIAL CO., LTD |
C 739 |
People’s Republic of China |
DECHANG SHIDA CARBON CO., LTD |
C 740 |
People’s Republic of China |
Fushun Jinly Petrochemical Carbon Co., Ltd |
C 741 |
People’s Republic of China |
FUSHUN ORIENTAL CARBON CO., LTD |
C 742 |
People’s Republic of China |
Fushun Xinxinda Furnace Charge Factory |
C 743 |
People’s Republic of China |
Henan Sangraf Carbon Technologies Co., Limited |
C 744 |
People’s Republic of China |
Jiangsu Jianglong New Energy Technology Co., Ltd |
C 746 |
People’s Republic of China |
JILIN CARBON CO., LTD |
C 747 |
People’s Republic of China |
Jilin City Chengxin Carbon Co., Ltd |
C 748 |
People’s Republic of China |
JILIN CITY ZHAOCHEN CARBON CO., LTD |
C 749 |
People’s Republic of China |
Kaifeng Pingmei New Carbon Materials Technology Co., Ltd |
C 750 |
People’s Republic of China |
LIAONING SINCERE CARBON NEW MATERIAL CO., LTD |
C 751 |
People’s Republic of China |
LIAOYANG CARBON CO., LTD |
C 752 |
People’s Republic of China |
LIAOYANG SHOUSHAN CARBON FACTORY |
C 753 |
People’s Republic of China |
LINGHAI HONGFENG CARBON PRODUCTS CO., LTD |
C 754 |
People’s Republic of China |
MEISHAN SHIDA NEW MATERIAL CO., LTD |
C 755 |
People’s Republic of China |
SHANDONG ASAHI GRAPHITE NEW MATERIAL TECHNOLOGY CO., LTD |
C 756 |
People’s Republic of China |
SHANDONG BASAN GRAPHITE NEW MATERIAL PLANT |
C 757 |
People’s Republic of China |
SHANXI JUXIAN GRAPHITE NEW MATERIALS CO., LTD |
C 758 |
People’s Republic of China |
SHANXI SINSAGE CARBON MATERIAL TECHNOLOGY CO., LTD |
C 759 |
People’s Republic of China |
TIANJIN KIMWAN CARBON TECHNOLOGY AND DEVELOPMENT CO., LTD |
C 760 |
People’s Republic of China |
XINGHE COUNTY MUZI CARBON CO., LTD |
C 762 |