COMMISSION IMPLEMENTING REGULATION (EU) 2021/1805
of 12 October 2021
imposing a definitive anti-dumping duty on imports of wire rod originating in the People’s Republic of China following an expiry review pursuant to Article 11(2) of Regulation (EU) 2016/1036 of the European Parliament and of the Council
1.
PROCEDURE
1.1.
Measures in force
1.2.
Request for an expiry review
1.3.
Initiation of an expiry review
1.3.1.
Review investigation period and period considered
1.3.2.
Interested parties
1.3.3.
Sampling
1.3.3.1. Sampling of Union producers
1.3.3.2. Sampling of importers
1.3.3.3. Sampling of exporting producers in the PRC
1.3.4.
Questionnaires and verification visits
2.
PRODUCT UNDER REVIEW AND LIKE PRODUCT
2.1.
Product under review
2.2.
Like product
3.
DUMPING
3.1.
Procedure for the determination of the normal value under Article 2(6a) of the basic Regulation
3.2.
Non-cooperation from the People’s Republic of China
3.3.
Normal Value
3.3.1.
Representative Country
3.3.1.1. General remarks
3.3.1.2. Sources used to establish undistorted costs
3.3.2.
Undistorted costs and benchmarks
3.3.2.1. Data used for the construction of normal value
Factor of Production |
HS codes |
Value (RMB) |
Unit |
Raw Materials |
|
|
|
Billets – semi-finished products of iron or non-alloy steel |
7207 11 7207 20 |
3,23 3,23 |
kg |
Labour |
|
|
|
Labour wages in manufacturing sector |
[N/A] |
23,684 |
Hours |
Energy |
|
|
|
Electricity |
[N/A] |
0,441-0,492(54) |
kWh |
Natural Gas |
[N/A] |
0,733–0,819(55) |
m3 |
Water |
[N/A] |
4,84 |
m3 |
By product/waste |
|
|
|
Waste and Scrap |
7204 10 7204 41 7204 29 7204 49 |
2,39 2,39 2,82 1,96 |
kg |
3.3.2.2. Raw materials and scrap
3.3.2.3. Labour
3.3.2.4. Energy
3.3.2.5. Manufacturing overhead costs, SG&A, profits and depreciation
3.3.2.6. Calculation of the normal value
3.3.3.
Continuation of dumping
3.4.
Likelihood of recurrence of dumping
3.5.
Comparison between the normal value and export price to the rest of the world
Country |
2018 volume |
2018 average price |
2019 volume |
2019 average price |
RIP volume |
RIP average price |
Korea, South |
816 301 |
498 |
902 953 |
461 |
849 193 |
446 |
Thailand |
724 536 |
496 |
643 022 |
466 |
633 517 |
455 |
Indonesia |
470 161 |
523 |
407 158 |
498 |
411 668 |
470 |
Vietnam |
472 460 |
500 |
393 555 |
482 |
301 005 |
471 |
Philippines |
714 053 |
471 |
373 321 |
447 |
187 523 |
449 |
Source: GTA |
3.5.1.
Production capacity and spare capacity in the PRC
3.5.2.
Attractiveness of the Union market
3.6.
Conclusion on the likelihood of recurrence of dumping
4.
INJURY
4.1.
Definition of the Union industry and Union production
4.2.
Union consumption
|
2017 |
2018 |
2019 |
RIP |
Total Union consumption |
20 365 727 |
21 318 592 |
20 219 432 |
18 821 504 |
Index (2017 = 100) |
100 |
105 |
99 |
92 |
Captive market |
2 426 375 |
2 724 231 |
2 535 896 |
2 545 577 |
Index (2017 = 100) |
100 |
112 |
105 |
105 |
Free market |
17 939 352 |
18 594 360 |
17 683 536 |
16 275 927 |
Index (2017 = 100) |
100 |
104 |
99 |
91 |
Source: Eurofer and Eurostat |
4.3.
Imports from the country concerned
4.3.1.
Volume and market share of the imports from the country concerned
|
2017 |
2018 |
2019 |
RIP |
Volume of imports from the country concerned (tonnes) |
556 |
44 |
47 |
75 |
Index (2017 = 100) |
100 |
8 |
8 |
14 |
Market share (%) |
0,0 |
0,0 |
0,0 |
0,0 |
Source: Eurostat |
4.3.2.
Prices of the imports from the country concerned and price undercutting
4.4.
Imports from third countries other than PRC
Country |
|
2017 |
2018 |
2019 |
RIP |
Turkey |
Volume (tonnes) |
441 408 |
921 060 |
458 996 |
329 613 |
Index (2017 = 100) |
100 |
209 |
104 |
75 |
|
Market share on the free market (%) |
2,5 |
5,0 |
2,6 |
2,0 |
|
Index (2017 = 100) |
100 |
201 |
105 |
82 |
|
Average price (EUR/tonne) |
468 |
513 |
475 |
473 |
|
Index (2017 = 100) |
100 |
110 |
101 |
101 |
|
Russia |
Volume (tonnes) |
349 011 |
368 158 |
249 488 |
331 194 |
Index (2017 = 100) |
100 |
105 |
71 |
95 |
|
Market share on the free market (%) |
1,9 |
2,0 |
1,4 |
2,0 |
|
Index (2017 = 100) |
100 |
102 |
73 |
105 |
|
Average price (EUR/tonne) |
444 |
497 |
464 |
434 |
|
Index (2017 = 100) |
100 |
112 |
104 |
98 |
|
Belarus |
Volume (tonnes) |
282 422 |
195 380 |
243 772 |
257 688 |
Index (2017 = 100) |
100 |
69 |
86 |
91 |
|
Market share on the free market (%) |
1,6 |
1,1 |
1,4 |
1,6 |
|
Index (2017 = 100) |
100 |
67 |
88 |
101 |
|
Average price (EUR/tonne) |
425 |
519 |
478 |
459 |
|
Index (2017 = 100) |
100 |
122 |
112 |
108 |
|
Other third countries |
Volume (tonnes) |
1 142 592 |
1 192 067 |
1 024 468 |
1 111 213 |
Index (2017 = 100) |
100 |
104 |
90 |
97 |
|
Market share on the free market (%) |
6,4 |
6,4 |
5,8 |
6,8 |
|
Index (2017 = 100) |
100 |
101 |
91 |
107 |
|
Average price (EUR/tonne) |
519 |
595 |
550 |
516 |
|
Index (2017 = 100) |
100 |
115 |
106 |
99 |
|
Total of all third countries except PRC |
Volume (tonnes) |
2 215 433 |
2 676 664 |
1 976 724 |
2 029 708 |
Index (2017 = 100) |
100 |
121 |
89 |
92 |
|
Market share on the free market (%) |
12,3 |
14,4 |
11,2 |
12,5 |
|
Index (2017 = 100) |
100 |
117 |
91 |
101 |
|
Average price (EUR/tonne) |
485 |
548 |
513 |
488 |
|
Index (2017 = 100) |
100 |
113 |
106 |
101 |
|
Source: Eurostat |
4.5.
Economic situation of the Union industry
4.5.1.
General remarks
4.5.2.
Macroeconomic indicators
(72)
4.5.2.1. Production, production capacity and capacity utilisation
|
2017 |
2018 |
2019 |
RIP |
Production volume (tonnes) |
20 101 565 |
20 670 532 |
19 942 245 |
18 298 579 |
Index (2017 = 100) |
100 |
103 |
99 |
91 |
Production capacity (tonnes) |
25 860 247 |
25 875 427 |
26 941 347 |
27 300 050 |
Index (2017 = 100) |
100 |
100 |
104 |
106 |
Capacity utilisation (%) |
78 |
80 |
74 |
67 |
Index (2017 = 100) |
100 |
103 |
95 |
86 |
Source: Eurofer, sampled Union producers |
4.5.2.2. Sales volume and market share
|
2017 |
2018 |
2019 |
RIP |
Total sales volume in the Union–both free and captive market (tonnes) |
18 149 739 |
18 641 884 |
18 242 661 |
16 791 721 |
Index (2017 = 100) |
100 |
103 |
101 |
93 |
Captive market sales and use |
2 426 375 |
2 724 231 |
2 535 896 |
2 545 577 |
Index (2017 = 100) |
100 |
112 |
105 |
105 |
Captive market sales and use as a % of total market sales |
13,4 |
14,6 |
13,9 |
15,2 |
Index (2017 = 100) |
100 |
109 |
104 |
113 |
Free market sales |
15 723 364 |
15 917 652 |
15 706 766 |
14 246 144 |
Index (2017 = 100) |
100 |
101 |
100 |
91 |
Market share (of free market sales (%)) |
87,6 |
85,6 |
88,8 |
87,5 |
Index (2017 = 100) |
100 |
98 |
101 |
100 |
Source: Eurofer, sampled Union producers |
4.5.2.3. Growth
4.5.2.4. Employment and productivity
|
2017 |
2018 |
2019 |
RIP |
Number of employees |
10 271 |
10 530 |
11 125 |
10 853 |
Index (2017 = 100) |
100 |
103 |
108 |
106 |
Productivity (unit/employee) |
1 957 |
1 963 |
1 793 |
1 686 |
Index (2017 = 100) |
100 |
100 |
92 |
86 |
Source: Eurofer, sampled Union producers |
4.5.2.5. Magnitude of the dumping margin and recovery from past dumping
4.5.3.
Microeconomic indicators
(73)
4.5.3.1. Prices and factors affecting prices
|
2017 |
2018 |
2019 |
RIP |
Average unit sales price on the free market (EUR/tonne) |
529 |
604 |
560 |
521 |
Index (2017 = 100) |
100 |
114 |
106 |
98 |
Unit cost of production (EUR/tonne) |
523 |
564 |
591 |
575 |
Index (2017 = 100) |
100 |
108 |
113 |
110 |
Source: Sampled Union producers |
4.5.3.2. Labour costs
|
2017 |
2018 |
2019 |
RIP |
Average labour costs per employee (EUR) |
56 548 |
59 747 |
58 983 |
56 665 |
Index (2017 = 100) |
100 |
106 |
104 |
100 |
Source: Sampled Union producers |
4.5.3.3. Inventories
|
2017 |
2018 |
2019 |
RIP |
Closing stocks (tonnes) |
363 501 |
444 814 |
417 212 |
420 511 |
Index (2017 = 100) |
100 |
122 |
115 |
116 |
Closing stocks as a percentage of production |
6,8 |
8,2 |
8,3 |
9,5 |
Index (2017 = 100) |
100 |
122 |
123 |
140 |
Source: Sampled Union producers |
4.5.3.4. Profitability, cash flow, investments, return on investments and ability to raise capital
|
2017 |
2018 |
2019 |
RIP |
Profitability of sales in the Union to unrelated customers (% of sales turnover) |
1,2 |
6,5 |
-5,4 |
-10,4 |
Index (2017 = 100) |
100 |
530 |
- 546 |
- 952 |
Cash flow (EUR) |
62 999 177 |
158 497 581 |
-32 609 909 |
-73 869 927 |
Index (2017 = 100) |
100 |
252 |
- 152 |
- 217 |
Investments (EUR) |
57 591 654 |
50 424 514 |
76 852 470 |
65 369 090 |
Index (2017 = 100) |
100 |
88 |
133 |
114 |
Return on investments (%) |
1,4 |
8,1 |
-5,5 |
-8,5 |
Index (2017 = 100) |
100 |
576 |
- 495 |
- 705 |
Source: Sampled Union producers |
4.6.
Conclusion on injury
5.
LIKELIHOOD OF RECURRENCE OF INJURY ORIGINALLY CAUSED BY DUMPED IMPORTS FROM THE PRC IF THE MEASURES WERE REPEALED
5.1.
Spare capacity in the PRC and the attractiveness of the Union market
5.2.
Impact of potential imports from the PRC on the Union industry’s situation should the measures lapse
6.
UNION INTEREST
6.1.
Interest of the Union industry
6.2.
Interest of unrelated importers, traders and users
6.3.
Conclusion on Union interest
7.
ANTI-DUMPING MEASURES
Article 1
Company |
Anti-dumping duty (%) |
TARIC additional code |
Valin Group |
7,9 |
A930 |
All other companies |
24,0 |
A999 |