COMMISSION IMPLEMENTING REGULATION (EU) 2022/2068
of 26 October 2022
imposing a definitive anti-dumping duty on imports of certain cold-rolled flat steel products originating in the People’s Republic of China and the Russian Federation 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.
Previous investigations and measures in force
1.2.
Request for an expiry review
1.3.
Initiation of an expiry review
1.4.
Review investigation period and period considered
1.5.
Interested parties
1.6.
Comments on initiation
1.7.
Sampling
1.7.1.
Sampling of Union producers
1.7.2.
Sampling of importers
1.7.3.
Sampling of exporting producers in Russia and China
1.7.4.
Verification
1.8.
Subsequent procedure
2.
PRODUCT UNDER REVIEW, PRODUCT CONCERNED AND LIKE PRODUCT
2.1.
Product under review
2.2.
Product concerned
2.3.
Like product
3.
DUMPING
3.1.
People’s Republic of China
3.1.1.
Preliminary remarks
3.1.2.
Dumping
3.1.2.1. Procedure for the determination of the normal value under Article 2(6a) of the basic Regulation for the imports of certain cold-rolled flat steel products originating in the PRC
3.1.2.2. Normal value
3.1.3.
Existence of significant distortions
3.1.4.
Representative country
3.1.4.1. General remarks
3.1.4.2. A level of economic development similar to the PRC
3.1.4.3. Availability of relevant public data in the representative country
3.1.4.4. Level of social and environmental protection
3.1.4.5. Conclusion
3.1.5.
Sources used to establish undistorted costs
3.1.6.
Undistorted costs and benchmarks
3.1.6.1. Factors of production
Factor of Production |
Commodity Code |
Undistorted value in CNY |
Unit of measurement |
Raw materials |
|||
Dolomite |
251810 , 251820 and 251830 |
169,9 |
Tonne |
Limestone |
252100 |
160,8 |
Tonne |
Quicklime |
252210 |
852,8 |
Tonne |
Iron ores and concentrates |
260111 and 260112 |
1 206,8 |
Tonne |
Ferrous products |
720310 and 720390 |
453 671 |
Tonne |
Anthracite and Bituminous coal |
270111 and 270112 |
662 |
Tonne |
Coke and semi-coke of coal |
270400 |
2 027,6 |
Tonne |
Oxygen |
280440 |
8 796,3 |
Cubic meter |
Ferro-manganese |
720211 and 720219 |
9 388,2 |
Tonne |
Ferro-chromium |
720241 and 720249 |
9 470,6 |
Tonne |
Semi-finished products of iron or non-alloy steel |
7207 |
4 256,3 |
Tonne |
Flat-rolled products of iron or non-alloy steel |
72081000 , 72082500 , 72082610 , 72082690 , 72082710 , 72082790 , 72083610 , 72083690 , 72083700 , 72083810 , 72083890 , 72083910 , 72083990 , 72084000 , 72085100 , 72085200 , 72085300 , 72085400 , 72089000 , 72111300 , 72111400 , 72111900 |
4 637,9 |
Tonne |
Flat-rolled products of other alloy steel, of a width of 600 mm or more |
72253000 , 72254010 , 72254090 |
8 539,6 |
Tonne |
Flat-rolled products of other alloy steel, of a width of less than 600 mm |
72269100 |
9 081,8 |
Tonne |
Byproduct: Waste |
|||
Waste and scrap of iron or steel |
720430 and 720449 |
2 383,3 |
Tonne |
Turnings, shavings, chips, milling waste, sawdust, filings, trimmings and stampings of iron or steel |
720441 |
3 269,1 |
Tonne |
Labour |
|||
Labour |
|
24,8 |
per man hour |
Energy |
|||
Electricity |
|
547,7 |
KWH |
Natural gas |
271111 and 271112 |
1 638 |
Tonne |
3.1.6.2. Raw materials
3.1.6.3. Labour
3.1.6.4. Electricity
3.1.6.5. Natural gas
3.1.6.6. Manufacturing overhead costs, SG&A, profits and depreciation
3.1.7.
Calculation of the normal value
3.1.8.
Export price
3.1.9.
Comparison
3.1.10.
Continuation of dumping
3.1.11.
Likelihood of recurrence of dumping
3.1.11.1. Comparison between export prices to third countries and export prices to the Union
3.1.11.2. Production capacity and spare capacity in China
3.1.11.3. Attractiveness of the Union market
3.1.11.4. Conclusion on the likelihood of recurrence
3.2.
Russia
3.2.1.
Preliminary remarks
3.2.2.
Continuation of dumping of imports during the review investigation period
3.2.2.1. Normal value
3.2.2.2. Export price
3.2.2.3. Comparison
3.2.2.4. Continuation of dumping
3.2.3.
Likelihood of recurrence of dumping should measures be repealed
3.2.3.1. Exports to third countries
(a)
Normal value
(b)
Export price
(c)
Price comparison
3.2.3.2. Production capacity and spare capacity in Russia
3.2.3.3. Attractiveness of the Union market
3.2.3.4. Conclusion on the likelihood of recurrence of dumping
4.
INJURY
4.1.
Definition of the Union industry and Union production
4.2.
Union consumption
|
2018 |
2019 |
2020 |
Review Investigation period |
Total Union consumption |
39 389 717 |
38 484 642 |
31 808 880 |
33 579 173 |
Index (2018 = 100) |
100 |
98 |
81 |
85 |
Captive market |
28 207 944 |
28 129 434 |
22 651 025 |
23 902 153 |
Index (2018 = 100) |
100 |
100 |
80 |
85 |
Free market |
11 181 772 |
10 355 209 |
9 157 856 |
9 677 020 |
Index (2018 = 100) |
100 |
93 |
82 |
87 |
Source: Data provided by Eurofer and cross-checked with the sampled producers questionnaire replies; Eurostat. |
4.3.
Imports from the countries concerned and the rest of the world
4.3.1.
Volume and market share of the imports from the countries concerned and the rest of the world
|
2018 |
2019 |
2020 |
Review Investigation period |
Volume of imports from the countries concerned |
14 367 |
4 286 |
1 435 |
9 713 |
Index (2018 = 100) |
100 |
30 |
10 |
68 |
Market share |
0,1 % |
0,0 % |
0,0 % |
0,1 % |
Volume of imports from the PRC |
2 305 |
1 275 |
423 |
7 065 |
Index (2018 = 100) |
100 |
55 |
18 |
307 |
Market share PRC |
0,0 % |
0,0 % |
0,0 % |
0,1 % |
Volume of imports from Russia |
12 062 |
3 011 |
1 012 |
2 648 |
Index (2018 = 100) |
100 |
25 |
8 |
22 |
Market share Russia |
0,0 % |
0,0 % |
0,0 % |
0,0 % |
Volume of imports from the rest of the world |
2 279 706 |
2 113 190 |
1 876 491 |
2 154 420 |
Index (2018 = 100) |
100 |
93 |
82 |
95 |
Market share rest of the world |
20,39 % |
20,41 % |
20,49 % |
22,26 % |
Source: Eurostat |
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
|
2018 |
2019 |
2020 |
Review Investigation period |
Production volume (tonnes) |
36 298 267 |
35 686 689 |
29 229 520 |
30 520 404 |
Index (2018 = 100) |
100 |
98 |
81 |
84 |
Production capacity (tonnes) |
45 912 036 |
45 976 102 |
48 542 510 |
44 909 450 |
Index (2018 = 100) |
100 |
100 |
106 |
98 |
Capacity utilisation (%) |
79 |
78 |
60 |
68 |
Index (2018 = 100) |
100 |
98 |
76 |
86 |
Source: Eurofer, sampled Union producers |
4.4.2.2. Sales volume and market share
|
2018 |
2019 |
2020 |
Review Investigation period |
Total Sales volume on the Union market – free and captive |
37 095 644 |
36 367 167 |
29 930 954 |
31 415 040 |
Index (2018 = 100) |
100 |
98 |
81 |
85 |
Captive market sales and use |
28 207 944 |
28 129 434 |
22 651 025 |
23 902 153 |
Index (2018 = 100) |
100 |
100 |
80 |
85 |
Free market sales |
8 887 699 |
8 237 733 |
7 279 930 |
7 512 887 |
Index (2018 = 100) |
100 |
93 |
82 |
85 |
Market share of free market sales |
79 % |
80 % |
79 % |
78 % |
Source: Eurofer, sampled Union producers |
4.4.2.3. Growth
4.4.2.4. Employment and productivity
|
2018 |
2019 |
2020 |
Review Investigation period |
Number of employees |
9 634 |
9 137 |
9 773 |
9 321 |
Index (2018 = 100) |
100 |
95 |
101 |
97 |
Productivity (tonnes/employee) |
3 768 |
3 906 |
2 991 |
3 274 |
Index (2018 = 100) |
100 |
104 |
79 |
87 |
Source: Eurofer, sampled Union producers |
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
|
2018 |
2019 |
2020 |
Review Investigation period |
Average unit sales price in the Union on the free market |
654 |
613 |
553 |
622 |
Index (2018 = 100) |
100 |
94 |
85 |
95 |
Unit cost of production |
592 |
617 |
573 |
643 |
Index (2018 = 100) |
100 |
104 |
97 |
109 |
Source: Sampled Union producers |
4.4.3.2. Labour costs
|
2018 |
2019 |
2020 |
Review Investigation period |
Average labour costs per employee (EUR) |
91 664 |
97 412 |
93 113 |
97 981 |
Index (2018 = 100) |
100 |
106 |
102 |
107 |
Source: Sampled Union producers |
4.4.3.3. Inventories
|
2018 |
2019 |
2020 |
Review Investigation period |
Closing stocks (tonnes) |
488 722 |
429 657 |
284 572 |
262 487 |
Index (2018 = 100) |
100 |
88 |
58 |
54 |
Closing stocks as a percentage of production |
4 |
4 |
3 |
2 |
Index (2018 = 100) |
100 |
88 |
65 |
55 |
Source: Sampled Union producers |
4.4.3.4. Profitability, cash flow, investments, return on investments and ability to raise capital
|
2018 |
2019 |
2020 |
Review Investigation period |
Profitability of sales in the Union to unrelated customers (% of sales turnover) |
16,1 |
-2,8 |
-14,7 |
-3,1 |
Index (2018 = 100) |
100 |
-17 |
-92 |
-20 |
Cash flow (EUR) |
1 197 337 649 |
1 024 735 660 |
744 992 480 |
822 335 704 |
Index (2018 = 100) |
100 |
86 |
62 |
69 |
Investments (EUR) |
65 866 851 |
75 059 376 |
61 159 498 |
72 616 722 |
Index (2018 = 100) |
100 |
114 |
93 |
110 |
Return on investments (%) |
5 |
0 |
-3 |
-1 |
Index (2018 = 100) |
100 |
-8 |
-69 |
-12 |
Source: Sampled Union producers |
4.5.
Conclusion on injury
5.
LIKELIHOOD OF RECURRENCE OF INJURY
5.1.
Spare capacity in China and Russia and the attractiveness of the Union market
5.2.
Effect on the Union industry situation
5.3.
Conclusion
6.
UNION INTEREST
6.1.
Interest of the Union industry
6.2.
Interest of users and unrelated importers
6.3.
Conclusion on Union interest
7.
CLAIMS FOR SUSPENSION/TERMINATION OF MEASURES
8.
ANTI-DUMPING MEASURES
Article 1
Country |
Company |
Anti-dumping duty (%) |
TARIC additional code |
PRC |
Angang Steel Company Limited, Anshan |
19,7 |
C097 |
|
Tianjin Angang Tiantie Cold Rolled Sheets Co. Ltd., Tianjin |
19,7 |
C098 |
|
Other cooperating companies listed in Annex |
20,5 |
|
|
All other companies |
22,1 |
C999 |
Russia |
Magnitogorsk Iron & Steel Works OJSC, Magnitogorsk |
18,7 |
C099 |
|
PAO Severstal, Cherepovets |
34 |
C100 |
|
All other companies |
36,1 |
C999 |
Article 2
Article 3
ANNEX
Country |
Name |
TARIC additional code |
PRC |
Hesteel Co., Ltd Tangshan Branch, Tangshan |
C103 |
PRC |
Handan Iron & Steel Group Han-Bao Co., Ltd, Handan |
C104 |
PRC |
Baoshan Iron & Steel Co., Ltd, Shanghai |
C105 |
PRC |
Shanghai Meishan Iron & Steel Co., Ltd, Nanjing |
C106 |
PRC |
BX Steel POSCO Cold Rolled Sheet Co., Ltd, Benxi |
C107 |
PRC |
Bengang Steel Plates Co., Ltd, Benxi |
C108 |
PRC |
WISCO International Economic & Trading Co. Ltd, Wuhan |
C109 |
PRC |
Maanshan Iron & Steel Co., Ltd, Maanshan |
C110 |
PRC |
Tianjin Rolling-one Steel Co., Ltd, Tianjin |
C111 |
PRC |
Zhangjiagang Yangtze River Cold Rolled Sheet Co., Ltd, Zhangjiagang |
C112 |
PRC |
Inner Mongolia Baotou Steel Union Co., Ltd, Baotou City |
C113 |