COMMISSION IMPLEMENTING REGULATION (EU) 2020/508
of 7 April 2020
imposing a provisional anti-dumping duty on imports of certain hot rolled stainless steel sheets and coils originating in Indonesia, the People’s Republic of China and Taiwan
1.
PROCEDURE
1.1.
Initiation
1.2.
Interested parties
1.3.
Sampling
1.3.1.
Sampling of Union producers
1.3.2.
Sampling of importers
1.3.3.
Sampling of exporting producers in the countries concerned
1.3.3.1.
Indonesia
1.3.3.2.
The People’s Republic of China
1.3.3.3.
Taiwan
1.4.
Individual examination
1.5.
Questionnaire replies and verification visits
1.6.
Investigation period and period considered
1.7.
Procedure for the determination of the normal value under Article 2(6a) of the basic Regulation
2.
PRODUCT CONCERNED AND LIKE PRODUCT
2.1.
Product concerned
2.2.
Like product
2.3.
Claims regarding product scope
3.
DUMPING
3.1.
Indonesia
3.1.1.
Exporting producers
3.1.2.
Application of Article 18 of the basic Regulation
3.1.3.
Normal value
3.1.4.
Export price
3.1.5.
Comparison
3.1.6.
Dumping margins
Company |
Provisional dumping margin |
PT Indonesia Guang Ching Nickel and Stainless Steel Industry PT Indonesia Tsingshan Stainless Steel |
19,2 % |
All other companies |
19,2 % |
3.2.
The PRC
3.2.1.
Preliminary remarks
3.2.2.
Normal value
3.2.2.1.
Existence of significant distortions
(a) Introduction
(b) Significant distortions affecting the domestic prices and costs in the PRC
(c) 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
(d) 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
(e) 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
(f) 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
(g) Significant distortions according to Article 2(6a)(b), fifth indent of the basic Regulation: wage costs being distorted
(h) 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
(i) Systemic nature of the distortions described
(j) Conclusion
3.2.2.2.
Representative country
3.2.2.3.
Sources used to establish undistorted costs
3.2.2.4.
Undistorted costs and benchmarks
Factor of Production |
HS code |
Undistorted value |
Unit |
Raw Materials/Auxiliary Materials |
|||
Quartzite |
2506 20 |
1 945,57 |
CNY/t |
Fireclay |
2508 30 |
4 109,80 |
CNY/t |
Serpentine |
2516 90 |
4 257,06 |
CNY/t |
Fused magnesia; dead-burned (sintered) magnesia, whether or not containing small quantities of other oxides added before sintering; other magnesium oxide, where or not pure |
2519 90 |
8 993,25 |
CNY/t |
Fluorspar – Containing by weight 97 % or less of calcium fluoride |
2529 21 |
2 126,27 |
CNY/t |
Iron ore, non-agglomerated (powder); Lump Iron Ore |
2601 11 |
8 300,12 |
CNY/t |
Iron ore, agglomerated (sinter) |
2601 12 |
1 165,36 |
CNY/t |
Chromium Ores and Concentrates |
2610 00 |
4 493,41 |
CNY/t |
Fat coal; Coking coal |
2701 12 |
1 412,62 |
CNY/t |
Lean coal; Electric coal; Gas coal |
2701 19 |
1 268,12 |
CNY/t |
Coke; Coke powder; Metallurgical coke |
2704 00 |
2 703,69 |
CNY/t |
Lubricating Oil |
2710 19 |
73,73 |
CNY/t |
Carbon |
2803 00 |
9 656,11 |
CNY/t |
Calcium (Wire) |
2805 12 |
34 597,60 |
CNY/t |
Sulphuric Acid |
2807 00 |
560,10 |
CNY/t |
Nitric Acid |
2808 00 |
2 582,31 |
CNY/t |
Hydrofluoric Acid |
2811 11 |
11 085,17 |
CNY/t |
Ammonia anhydrous |
2814 10 |
1 920,32 |
CNY/t |
Molybdenum oxide or hydroxide |
2825 70 |
134 622,70 |
CNY/t |
Ferrous sulfide |
2830 90 |
92 317,53 |
CNY/t |
Hydrogen Peroxide |
2847 00 |
15 955,82 |
CNY/t |
Core wire; Casting powder |
3824 99 |
15 192,47 |
CNY/t |
Medium Nickel pig iron; Low Nickel pig iron |
[N/A] (see recital (190)) |
84 151,00 Adjusted for actual nickel content(66) |
CNY/t |
Ferro Manganese, containing by weight > 2 % carbon |
7202 11 |
8 143,34 |
CNY/t |
Ferro Manganese, containing by weight <= 2 % carbon |
7202 19 |
12 910,85 |
CNY/t |
Ferro-silicon, > 55 % silicon |
7202 21 |
12 754,53 |
CNY/t |
Ferro-silicon manganese |
7202 30 |
8 077,34 |
CNY/t |
Ferro-chromium, > 4 % carbon |
7202 41 |
9 475,88 |
CNY/t |
Ferronickel |
[N/A] (see recital (190)) |
21 879,38 |
CNY/t |
Ferro-molybdenum |
7202 70 |
130 503,79 |
CNY/t |
Ferrotungsten iron |
7202 80 |
200 436,70 |
CNY/t |
Ferro-titanium |
7202 91 |
25 925,68 |
CNY/t |
Ferro-niobium |
[N/A] (see recital (190)) |
145 667,77 |
CNY/t |
Ferro-boron; Ferro-silico-calcium Alloy |
7202 99 |
14 659,67 |
CNY/t |
Cast iron scrap |
7204 10 |
909,47 |
CNY/t |
Stainless steel scrap |
7204 21 |
6 600,08 |
CNY/t |
Ferrous waste and scrap other than turnings, shavings, chips, milling waste, sawdust, filings, trimmings stampings; of material other than cast iron, alloy steel, tinned iron or steel |
7204 49 |
2 388,92 |
CNY/t |
Granules of pig iron, spiegeleisen, iron or steel |
7205 10 |
9 625,10 |
CNY/t |
Iron Torching Powder |
7205 29 |
8 830,75 |
CNY/t |
Molten iron |
[N/A] (see recital (190)) |
2 715,76 |
CNY/t |
Reinforcing Bars |
7214 20 |
3 961,67 |
CNY/t |
Shot Blast pellets |
7326 11 |
7 016,25 |
CNY/t |
Cathodes Copper |
7403 11 |
42 901,10 |
CNY/t |
Other articles of copper; cast, moulded, stamped or forged, but not further worked; excluding chains and parts thereof. |
7419 91 |
276 619,84 |
CNY/t |
Nickel, Not Alloyed |
7502 10 |
98 182,60 |
CNY/t |
Nickel waste and scrap |
7503 00 |
640,77 |
CNY/t |
Nickel bars, rods and profiles of nickel alloys |
7505 12 |
172 600,22 |
CNY/t |
Aluminium Ingot; Aluminium, unwrought, unalloyed |
7601 10 |
15 833,50 |
CNY/t |
Aluminium Wire, not alloyed |
7605 11 |
16 103,02 |
CNY/t |
Aluminium plates, sheets and strip |
7606 91 |
22 469,41 |
CNY/t |
Molybdenum bars and rods |
8102 95 |
817 404,83 |
CNY/t |
Cobalt mattes and other intermediate products of cobalt metallurgy |
8105 20 |
180 180,50 |
CNY/t |
Sponge Titanium |
8108 20 |
72 277,73 |
CNY/t |
Manganese |
8111 00 |
17 032,79 |
CNY/t |
Electrodes of graphite |
8545 11 |
57 656,22 |
CNY/t |
Slab |
[N/A] (see recital (190)) |
14 033,74 |
CNY/t |
Labour |
|||
Labour costs in manufacturing sector |
[N/A] |
33,88 |
CNY/hour |
Energy |
|||
Electricity |
[N/A] |
0,82 |
CNY/kWh |
Natural Gas |
[N/A] |
3,23 |
CNY/m3 |
Water |
[N/A] |
68,88 |
CNY/m3 |
Argon |
2804 21 |
8,03 |
CNY/m3 |
Oxygen |
2804 40 |
13,04 |
CNY/m3 |
(a) Raw materials and auxiliary materials
(b) Labour
(c) Energy inputs
3.2.2.5.
Manufacturing overhead costs, SG&A and profits
3.2.2.6.
Calculation of the normal value
3.2.3.
Export price
3.2.4.
Comparison
3.2.5.
Dumping margin
Company |
Provisional dumping margin (%) |
Shanxi Taigang Stainless Steel Co., Ltd.(84) |
108,4 |
Fujian Fuxin Special Steel Co., Ltd |
55,6 |
Xiangshui Defeng Metals Co., Ltd |
87,9 |
Fujian Dingxin Technology Co., Ltd. |
87,9 |
All other companies |
108,4 |
3.3.
Taiwan
3.3.1.
Preliminary remarks
3.3.2.
Normal value
3.3.3.
Export price
3.3.4.
Comparison
3.3.5.
Dumping margins
Company |
Provisional dumping margin |
Yieh United Steel Co. and Tang Eng Iron Works Co. Ltd. |
6,0 % |
Walsin Lihwa Co. |
7,5 % |
All other companies |
7,5 % |
4.
INJURY
4.1.
Definition of the Union industry and Union production
4.2.
Determination of the relevant Union market
4.3.
Union consumption
4.3.1.
Free market consumption on the Union market
|
2016 |
2017 |
2018 |
IP |
Free Union consumption |
1 221 444 |
1 213 398 |
1 205 651 |
1 219 231 |
Index |
100 |
99 |
99 |
100 |
Source: Eurofer, sampled Union producers and Eurostat. |
4.3.2.
Captive consumption on the Union market
|
2016 |
2017 |
2018 |
IP |
Captive Union consumption |
3 627 275 |
3 741 880 |
3 703 555 |
3 607 752 |
Index |
100 |
103 |
102 |
99 |
Source: Eurofer. |
4.3.3.
Overall consumption
|
2016 |
2017 |
2018 |
IP |
Overall Union consumption |
4 848 718 |
4 955 278 |
4 909 206 |
4 826 983 |
Index |
100 |
102 |
101 |
100 |
Source: Eurofer, sampled Union producers and Eurostat. |
4.4.
Imports from the countries concerned
4.4.1.
Cumulative assessment of the effects of imports from the countries concerned
4.4.2.
Volume and market share of imports from the countries concerned
|
2016 |
2017 |
2018 |
IP |
PRC |
194 962 |
263 858 |
250 633 |
222 802 |
Index |
100 |
135 |
129 |
114 |
Market share |
16,0 % |
21,7 % |
20,8 % |
18,3 % |
Index |
100 |
136 |
130 |
114 |
Indonesia |
105 |
17 |
44 863 |
111 512 |
Index |
100 |
16 |
42 726 |
106 202 |
Market share |
0,0 %(86) |
0,0 %(87) |
3,7 % |
9,1 % |
Index |
100 |
100 (88) |
43 286 |
106 395 |
Taiwan |
28 992 |
39 739 |
50 058 |
36 910 |
Index |
100 |
137 |
173 |
127 |
Market share |
2,4 % |
3,3 % |
4,2 % |
3,0 % |
Index |
100 |
138 |
175 |
128 |
Total countries concerned |
224 059 |
303 613 |
345 554 |
371 224 |
Index |
100 |
136 |
154 |
166 |
Market share |
18,3 % |
25,0 % |
28,7 % |
30,4 % |
Index |
100 |
136 |
156 |
166 |
Source: Eurostat. |
4.4.3.
Prices of the imports from the countries concerned and price undercutting
|
2016 |
2017 |
2018 |
IP |
PRC |
1 503 |
1 827 |
1 826 |
1 820 |
Index |
100 |
122 |
121 |
121 |
Indonesia |
2 203 |
2 152 |
1 688 |
1 645 |
Index |
100 |
98 |
77 |
75 |
Taiwan |
1 550 |
1 813 |
1 954 |
1 943 |
Index |
100 |
117 |
126 |
125 |
Total countries concerned |
1 510 |
1 826 |
1 827 |
1 780 |
Index |
100 |
121 |
121 |
118 |
Source: Eurostat. |
4.5.
Economic situation of the Union industry
4.5.1.
General remarks
4.5.2.
Macroeconomic indicators
4.5.2.1.
Production, production capacity and capacity utilisation
|
2016 |
2017 |
2018 |
IP |
Total Union production (tonnes) |
4 786 053 |
4 807 793 |
4 768 710 |
4 636 995 |
Index |
100 |
100 |
100 |
97 |
Production capacity (tonnes) |
6 967 785 |
6 937 585 |
7 025 230 |
7 057 282 |
Index |
100 |
100 |
101 |
101 |
Capacity utilisation |
69 % |
69 % |
68 % |
66 % |
Index |
100 |
101 |
99 |
96 |
Source: Eurofer. |
4.5.2.2.
Sales volume and market share
|
2016 |
2017 |
2018 |
IP |
Union industry free sales volumes (tonnes) |
869 660 |
775 692 |
735 596 |
754 334 |
Index |
100 |
89 |
85 |
87 |
Market share on free Union consumption |
71,2 % |
63,9 % |
61,0 % |
61,9 % |
Index |
100 |
90 |
86 |
87 |
Source: Eurofer and Eurostat. |
|
2016 |
2017 |
2018 |
IP |
Captive volume on the Union market |
3 627 275 |
3 741 880 |
3 703 555 |
3 607 752 |
Index |
100 |
103 |
102 |
99 |
Total production of Union industry |
4 786 053 |
4 807 793 |
4 768 710 |
4 636 995 |
Index |
100 |
100 |
100 |
97 |
Share of captive market over total Union production |
75,8 % |
77,8 % |
77,7 % |
77,8 % |
Index |
100 |
103 |
102 |
103 |
Source: Eurofer. |
4.5.2.3.
Growth
4.5.2.4.
Employment and productivity
|
2016 |
2017 |
2018 |
IP |
Number of employees |
2 274 |
2 266 |
2 303 |
2 372 |
Index |
100 |
100 |
101 |
104 |
Productivity (tonnes per staff) |
2 104 |
2 122 |
2 070 |
1 955 |
Index |
100 |
101 |
98 |
93 |
Source: Eurofer. |
4.5.2.5.
Magnitude of the dumping margin
4.5.3.
Microeconomic indicators
4.5.3.1.
Prices and factors affecting prices
|
2016 |
2017 |
2018 |
IP |
Average unit sales price on the free market (EUR/tonne) |
1 699 |
2 019 |
2 072 |
1 991 |
Index |
100 |
119 |
122 |
117 |
Unit cost of production (EUR/tonne) |
1 581 |
1 795 |
1 929 |
1 894 |
Index |
100 |
114 |
122 |
120 |
Source: Sampled Union producers. |
4.5.3.2.
Labour costs
|
2016 |
2017 |
2018 |
IP |
Average labour costs per employee (EUR) |
62 423 |
61 712 |
60 037 |
61 534 |
Index |
100 |
99 |
96 |
99 |
Source: Sampled Union producers. |
4.5.3.3.
Inventories
|
2016 |
2017 |
2018 |
IP |
Closing stocks (tonnes) |
147 341 |
152 089 |
147 018 |
118 543 |
Index |
100 |
103 |
100 |
80 |
Closing stocks as a percentage of production |
3,1 % |
3,2 % |
3,1 % |
2,6 % |
Index |
100 |
103 |
100 |
83 |
Source: Eurofer. |
4.5.3.4.
Profitability, cash flow, investments and return on investments
|
2016 |
2017 |
2018 |
IP |
Profitability of sales in the Union to unrelated customers (% of sales turnover) |
7,2 % |
10,2 % |
5,1 % |
3,5 % |
Index |
100 |
142 |
71 |
49 |
Cash flow (EUR) |
20 214 740 |
48 032 998 |
25 074 879 |
-18 363 974 |
Index |
100 |
238 |
124 |
-91 |
Investments (EUR) |
29 376 840 |
47 908 280 |
48 154 124 |
46 211 563 |
Index |
100 |
163 |
164 |
157 |
Return on investments |
4,8 % |
8,5 % |
3,1 % |
0,2 % |
Index |
100 |
179 |
65 |
4 |
Source: Sampled Union producers. |
4.5.4.
Conclusion on injury
5.
CAUSATION
5.1.
Effects of the dumped imports
5.2.
Effects of other factors
5.2.1.
Imports from third countries
Country |
|
2016 |
2017 |
2018 |
IP |
Republic of Korea |
Volume (tonnes) |
64 995 |
32 949 |
35 535 |
33 191 |
Index |
100 |
51 |
55 |
51 |
|
Market share |
5,3 % |
2,7 % |
2,9 % |
2,7 % |
|
Index |
100 |
51 |
55 |
51 |
|
Average price (EUR/tonne) |
1 404 |
1 697 |
1 695 |
1 654 |
|
Index |
100 |
121 |
121 |
118 |
|
South Africa |
Volume (tonnes) |
25 803 |
29 123 |
25 923 |
27 494 |
Index |
100 |
113 |
100 |
107 |
|
Market share |
2,1 % |
2,4 % |
2,2 % |
2,3 % |
|
Index |
100 |
114 |
102 |
107 |
|
Average price (EUR/tonne) |
1 436 |
1 649 |
1 671 |
1 728 |
|
Index |
100 |
115 |
116 |
120 |
|
Other third countries |
Volume (tonnes) |
36 926 |
72 022 |
63 043 |
32 989 |
Index |
100 |
195 |
171 |
89 |
|
Market share |
3,0 % |
5,9 % |
5,2 % |
2,7 % |
|
Index |
100 |
196 |
173 |
89 |
|
Average price (EUR/tonne) |
1 837 |
1 931 |
2 084 |
2 302 |
|
Index |
100 |
105 |
113 |
125 |
|
Total of all third countries except the countries concerned |
Volume (tonnes) |
127 725 |
134 093 |
124 501 |
93 674 |
Index |
100 |
105 |
97 |
73 |
|
Market share |
10,5 % |
11,1 % |
10,3 % |
7,7 % |
|
Index |
100 |
106 |
99 |
73 |
|
Average price (EUR/tonne) |
1 536 |
1 813 |
1 887 |
1 904 |
|
Index |
100 |
118 |
123 |
124 |
|
Source: Eurostat. |
5.2.2.
Export performance of the Union industry
|
2016 |
2017 |
2018 |
IP |
Export volume (tonnes) |
125 237 |
151 305 |
156 620 |
141 448 |
Index |
100 |
121 |
125 |
113 |
Average price (EUR/tonne) |
1 745 |
1 909 |
1 940 |
1 992 |
Index |
100 |
109 |
111 |
114 |
Source: Sampled Union producers, Eurofer. |
5.2.3.
Other factors
5.3.
Conclusion on causation
6.
LEVEL OF MEASURES
6.1.
Examination of the margin adequate to remove the injury to the Union industry for Taiwan
Country |
Company |
Dumping margin (%) |
Underselling margin (%) |
Taiwan |
Yieh United Steel Co. and Tang Eng Iron Works Co. Ltd. |
6,0 |
24,1 |
Taiwan |
Walsin Lihwa Co. |
7,5 |
18,3 |
Taiwan |
All other companies |
7,5 |
24,1 |
6.2.
Examination of the margin adequate to remove the injury to the Union industry for Indonesia and the PRC
6.2.1.
Comparison between dumping margin and underselling margin
Country |
Company |
Dumping margin (%) |
Underselling margin (%) |
Indonesia |
PT Indonesia Guang Ching Nickel and Stainless Steel Industry PT Indonesia Tsingshan Stainless Steel |
19,2 |
17,0 |
PRC |
Shanxi Taigang Stainless Steel Co., Ltd |
108,4 |
18,9 |
PRC |
Fujian Fuxin Special Steel Co., Ltd |
55,6 |
14,5 |
PRC |
Xiangshui Defeng Metals Co., Ltd |
87,9 |
17,4 |
PRC |
Fujian Dingxin Technology Co., Ltd. |
87,9 |
17,4 |
PRC |
All other companies |
108,4 |
18,9 |
6.2.2.
Raw material distortions
(a) Indonesia
(b) The PRC
6.2.3.
Union interest under Article 7(2b) of the basic Regulation
6.2.3.1.
Spare capacities in the exporting countries
6.2.3.2.
Competition for raw materials
6.2.3.3.
Effect on supply chains for Union companies
6.2.3.4.
Conclusion
7.
UNION INTEREST
7.1.
Interest of the Union industry
7.2.
Interest of unrelated importers
7.3.
Interest of users
7.4.
Conclusion on Union interest
8.
PROVISIONAL ANTI-DUMPING MEASURES
Country |
Company |
Dumping margin |
Injury margin |
Provisional anti-dumping duty |
Indonesia |
PT Indonesia Guang Ching Nickel and Stainless Steel Industry and PT Indonesia Tsingshan Stainless Steel |
19,2 % |
17,0 % |
17,0 % |
Indonesia |
All other companies |
19,2 % |
17,0 % |
17,0 % |
People’s Republic of China |
Shanxi Taigang Stainless Steel Co., Ltd. |
108,4 % |
18,9 % |
18,9 % |
People’s Republic of China |
Fujian Fuxin Special Steel Co., Ltd |
55,6 % |
14,5 % |
14,5 % |
People’s Republic of China |
Xiangshui Defeng Metals Co., Ltd |
87,9 % |
17,4 % |
17,4 % |
People’s Republic of China |
Fujian Dingxin Technology Co., Ltd. |
87,9 % |
17,4 % |
17,4 % |
People’s Republic of China |
All other companies |
108,4 % |
18,9 % |
18,9 % |
Taiwan |
Yieh United Steel Co. and Tang Eng Iron Works Co. Ltd. |
6,0 % |
24,1 % |
6,0 % |
Taiwan |
Walsin Lihwa Co. |
7,5 % |
18,3 % |
7,5 % |
Taiwan |
All other companies |
7,5 % |
24,1 % |
7,5 % |
9.
REGISTRATION
10.
INFORMATION AT PROVISIONAL STAGE
11.
FINAL PROVISIONS
Article 1
Country |
Company |
Provisional anti-dumping duty |
TARIC additional code |
Indonesia |
PT Indonesia Guang Ching Nickel and Stainless Steel Industry |
17,0 % |
C541 |
Indonesia |
PT Indonesia Tsingshan Stainless Steel |
17,0 % |
C547 |
Indonesia |
All other companies |
17,0 % |
C999 |
People’s Republic of China |
Shanxi Taigang Stainless Steel Co., Ltd. |
18,9 % |
C163 |
People’s Republic of China |
Taiyuan Taigang Daming Metal Products |
18,9 % |
C542 |
People’s Republic of China |
Tisco Guangdong Stainless Steel Service Center Co., Ltd |
18,9 % |
C543 |
People’s Republic of China |
Tianjin TISCO & TPCO Stainless Steel Co. Ltd. |
18,9 % |
C025 |
People’s Republic of China |
Fujian Fuxin Special Steel Co., Ltd |
14,5 % |
C544 |
People’s Republic of China |
Xiangshui Defeng Metals Co., Ltd |
17,4 % |
C545 |
People’s Republic of China |
Fujian Dingxin Technology Co., Ltd. |
17,4 % |
C546 |
People’s Republic of China |
All other companies |
18,9 % |
C999 |
Taiwan |
Yieh United Steel Co. |
6,0 % |
C032 |
Taiwan |
Tang Eng Iron Works Co. Ltd. |
6,0 % |
C031 |
Taiwan |
Walsin Lihwa Co. |
7,5 % |
C548 |
Taiwan |
All other companies |
7,5 % |
C999 |