COMMISSION IMPLEMENTING REGULATION (EU) 2023/1123
of 7 June 2023
imposing a definitive countervailing duty on imports of certain hot-rolled flat products of iron, non-alloy or other alloy steel originating in People’s Republic of China following an expiry review pursuant to Article 18 of Regulation (EU) 2016/1037 of the European Parliament and of the Council
1.
PROCEDURE
1.1.
Previous investigations and measures in force
1.2.
Request for an expiry review
1.3.
Initiation of an expiry review
1.4.
Separate investigation relating to the same product concerned
1.5.
Review investigation period and period considered
1.6.
Interested parties
1.7.
Sampling
1.7.1.
Sampling of Union producers
1.7.2.
Sampling of importers
1.7.3.
Sampling of exporting producers in the PRC
1.8.
Questionnaire and verification
1.9.
Disclosure
2.
PRODUCT UNDER REVIEW, PRODUCT CONCERNED AND LIKE PRODUCT
2.1.
Product under review
2.2.
Product concerned
2.3.
Like product
3.
LIKELIHOOD OF CONTINUATION OF SUBSIDISATION
3.1.
Non-cooperation and the use of facts available in accordance with Article 28(1) of the basic Regulation
3.2.
General remarks on the steel sector in China
3.2.1.
14
th
Five-Year-Plan
3.2.2.
Order No 35
3.2.3.
Decision No 40
3.2.4.
The Revitalization Plan
3.2.5.
Guiding Catalogue of industrial structure adjustment
3.2.6.
Overall conclusions on the GOC’s intervention in the steel sector
3.3.
Subsidies and subsidy programmes examined in the current expiry review
3.4.
Subsidies countervailed in the original investigation
3.4.1.
Preferential lending
3.4.1.1.
Findings of the original investigation
3.4.1.2.
Continuation of the subsidy programme
3.4.1.3.
Benefit
3.4.1.4.
Specificity
3.4.1.5.
Conclusion
3.4.2.
The provision of land-use rights for less than adequate remuneration
3.4.2.1.
Findings of the original investigation
3.4.2.2.
Continuation of the subsidy programme
3.4.2.3.
Benefit
3.4.2.4.
Specificity
3.4.2.5.
Conclusion
3.4.3.
Direct tax exemption and reduction programmes
3.4.3.1.
Findings of the original investigation
3.4.3.2.
Continuation of the subsidy programme
3.4.3.3.
Benefit
3.4.3.4.
Specificity
3.4.3.5.
Conclusion
3.4.4.
Indirect tax and import tariff programmes and policies
3.4.4.1.
Findings of the original investigation
3.4.4.2.
Continuation of the subsidy programme
3.4.4.3.
Benefit
3.4.4.4.
Specificity
3.4.4.5.
Conclusion
3.4.5.
Grant programmes
3.4.5.1.
Findings of the original investigation
3.4.5.2.
Continuation of the subsidy programmes
3.4.5.3.
Benefit
3.4.5.4.
Specificity
3.4.5.5.
Conclusion
3.5.
Additional subsidies
3.5.1.
Debt for equity swaps
3.5.1.1.
Introduction
3.5.1.2.
Benefit
3.5.1.3.
Specificity
3.5.1.4.
Conclusion
3.6.
Overall conclusion regarding the continuation of the subsidisation
4.
DEVELOPMENT OF IMPORTS SHOULD THE MEASURES BE REPEALED
4.1.
Production capacity and spare capacity in the PRC
4.2.
Attractiveness of the Union market
4.3.
Conclusion on the likelihood of continuation of subsidisation
5.
INJURY
5.1.
Definition of the Union industry and Union production
5.2.
Union consumption
|
2018 |
2019 |
2020 |
Review investigation period |
Free market consumption |
34 533 |
32 411 |
27 899 |
34 869 |
Index |
100 |
94 |
81 |
101 |
Captive consumption |
45 289 |
42 011 |
36 989 |
40 424 |
Index |
100 |
93 |
82 |
89 |
Total Union consumption |
79 822 |
74 422 |
64 888 |
75 293 |
Index |
100 |
93 |
81 |
94 |
Source: Eurostat, Macro questionnaire reply from EUROFER. |
5.3.
Imports from the country concerned
5.3.1.
Volume and market share of the imports from the country concerned
|
2018 |
2019 |
2020 |
Review investigation period |
Volume of imports from the PRC |
1,7 |
0,5 |
0,3 |
28,7 |
Market share (%) |
0,0 |
0,0 |
0,0 |
0,1 |
PRC import prices |
1 674 |
3 177 |
2 482 |
664 |
Index |
100 |
190 |
148 |
40 |
Source: Eurostat, Macro Questionnaire reply from EUROFER. |
Country |
|
2018 |
2019 |
2020 |
Review investigation period |
Total of all third countries except the PRC |
Volume (000 tonnes) |
7 997 |
7 225 |
5 879 |
9 635 |
|
Index |
100 |
90 |
74 |
120 |
|
Market share (%) |
23 |
22 |
21 |
28 |
|
Average price (EUR/tonne) |
532 |
482 |
428 |
765 |
|
Index |
100 |
90 |
80 |
144 |
Source: Eurostat. |
5.4.
Economic situation of the Union industry
5.4.1.
General remarks
5.4.2.
Macroeconomic indicators
5.4.2.1.
Production, production capacity and capacity utilisation
|
2018 |
2019 |
2020 |
Review investigation period |
Production volume (000 tonnes) |
75 626 |
70 920 |
61 096 |
69 531 |
Index |
100 |
94 |
81 |
92 |
Production capacity (000 tonnes) |
90 923 |
92 584 |
91 965 |
93 249 |
Index |
100 |
102 |
101 |
103 |
Capacity utilisation (%) |
83 |
77 |
66 |
75 |
Index |
100 |
92 |
80 |
90 |
Source: Macro questionnaire reply from EUROFER. |
5.4.2.2.
Sales volume and market share
|
2018 |
2019 |
2020 |
Review investigation period |
Sales on the free market |
26 534 |
25 185 |
22 020 |
25 205 |
Index |
100 |
95 |
83 |
95 |
Market share (%) |
77 |
78 |
79 |
72 |
Index |
100 |
101 |
104 |
99 |
Source: Macro questionnaire reply from EUROFER. |
|
2018 |
2019 |
2020 |
Review investigation period |
Captive volume on the Union market |
45 289 |
42 011 |
36 989 |
40 424 |
Index |
100 |
93 |
82 |
89 |
Total production of Union Industry |
75 626 |
70 920 |
61 096 |
69 531 |
% of captive volume compared to total production |
59,9 |
59,2 |
60,5 |
58,1 |
Source: Macro questionnaire reply from EUROFER. |
5.4.2.3.
Growth
5.4.2.4.
Employment and productivity
|
2018 |
2019 |
2020 |
Review investigation period |
Number of employees |
41 161 |
38 980 |
36 207 |
38 470 |
Index |
100 |
95 |
88 |
93 |
Productivity (unit/employee) |
1 824 |
1 819 |
1 687 |
1 807 |
Index |
100 |
100 |
93 |
99 |
Source: Macro questionnaire reply from EUROFER. |
5.4.2.5.
Magnitude of the amount of countervailing subsidies and recovery from past subsidisation
5.4.3.
Microeconomic indicators
5.4.3.1.
Prices and factors affecting prices
|
2018 |
2019 |
2020 |
Review investigation period |
Average unit sales price on the free market |
549 |
509 |
450 |
734 |
Index |
100 |
93 |
82 |
134 |
Unit cost of production |
518 |
557 |
534 |
669 |
Index |
100 |
108 |
103 |
129 |
Source: Sampled Union producers questionnaire reply. |
5.4.3.2.
Labour costs
|
2018 |
2019 |
2020 |
Review investigation period |
Average labour costs per employee (EUR/FTE) |
64 164 |
69 352 |
69 748 |
78 444 |
Index |
100 |
108 |
109 |
122 |
Source: Sampled Union producers questionnaire reply. |
5.4.3.3.
Inventories
|
2018 |
2019 |
2020 |
Review investigation period |
Closing stocks (tonnes) |
631 608 |
533 200 |
390 880 |
522 405 |
Index |
100 |
84 |
62 |
83 |
Closing stocks as a percentage of production |
5,0 |
4,5 |
3,8 |
4,6 |
Index |
100 |
90 |
76 |
92 |
Source: Sampled Union producers questionnaire reply. |
5.4.3.4.
Profitability, cash flow, investments, return on investments and ability to raise capital
|
2018 |
2019 |
2020 |
Review investigation period |
Profitability of sales in the Union free market (% of sales turnover) |
8,4 |
-7,2 |
-18,0 |
14,1 |
Index |
100 |
-86 |
- 214 |
168 |
Cash flow (EUR) |
496 319 788 |
-6 211 922 |
- 130 468 840 |
645 183 908 |
Index |
100 |
-1,3 |
-26 |
130 |
Investments (EUR) |
216 927 207 |
433 154 031 |
181 406 902 |
394 535 083 |
Index |
100 |
200 |
84 |
182 |
Return on investments (%) |
9,1 |
-6,0 |
-13,3 |
17,4 |
Index |
100 |
-66 |
- 146 |
191 |
Source: Sampled Union producers questionnaire reply. |
5.5.
Conclusion on injury
6.
LIKELIHOOD OF RECURRENCE OF INJURY
6.1.
Production capacity and spare capacity in the PRC
6.2.
Attractiveness of the Union market
6.3.
Likely Chinese import prices and impact on the Union industry
6.4.
Conclusion
7.
UNION INTEREST
7.1.
Interest of the Union industry
7.2.
Interest of users and unrelated importers
7.3.
Conclusion on Union interest
8.
CLAIMS THAT THE MEASURES SHOULD BE SUSPENDED
9.
ANTI-SUBSIDY MEASURES
Article 1
Country |
Company |
Countervailing duty |
TARIC additional code |
People’s Republic of China |
Bengang Steel Plates Co., Ltd. |
28,1 % |
C157 |
|
Handan Iron & Steel Group Han-Bao Co., Ltd. |
7,8 % |
C158 |
|
Hesteel Co., Ltd. Tangshan Branch(61) |
7,8 % |
C159 |
|
Hesteel Co., Ltd. Chengde Branch(62) |
7,8 % |
C160 |
|
Zhangjiagang Hongchang Plate Co., Ltd. |
4,6 % |
C161 |
|
Zhangjiagang GTA Plate Co., Ltd. |
4,6 % |
C162 |
|
Shougang Jingtang United Iron and Steel Co. Ltd. |
31,5 % |
C164 |
|
Beijing Shougang Co. Ltd., Qian’an Iron & Steel branch |
31,5 % |
C208 |
|
Other cooperating companies listed in the Annex |
17,1 % |
See Annex |
|
All other companies |
35,9 % |
C999 |
Article 2
ANNEX
Country |
Name |
TARIC additional code |
PRC |
Angang Steel Company Limited |
C150 |
PRC |
Maanshan Iron & Steel Co., Ltd |
C165 |
PRC |
Rizhao Steel Wire Co., Ltd. |
C166 |
PRC |
Rizhao Baohua New Material Co., Ltd. |
C167 |
PRC |
Wuhan Iron & Steel Co., Ltd. |
C156 |