COMMISSION IMPLEMENTING REGULATION (EU) 2022/802
of 20 May 2022
imposing a provisional anti-dumping duty on imports of electrolytic chromium coated steel products originating in the People’s Republic of China and Brazil
1.
PROCEDURE
1.1.
Initiation
1.2.
Interested parties
1.3.
Comments on initiation
1.4.
Sampling
1.4.1.
Sampling of Union producers
1.4.2.
Sampling of importers
1.4.3.
Sampling of exporting producers in the PRC and Brazil
1.5.
Individual examination
1.6.
Questionnaire replies and verification visits
1.7.
Investigation period and period considered
2.
PRODUCT CONCERNED AND LIKE PRODUCT
2.1.
Product concerned
2.2.
Like product
2.3.
Registration
|
Investigation period |
Investigation period monthly average |
October 2021-January 2022 |
October 2021-January 2022 monthly average |
Imports from Brazil into the EU |
[13 000 -16 000 ] |
[1 200 -1 300 ] |
[8 000 -9 000 ] |
[2 000 -3 000 ] |
Imports from China into the EU |
[64 000 -75 000 ] |
[5 500 -6 500 ] |
[15 000 -18 000 ] |
[4 000 -5 000 ] |
Imports from countries concerned into the EU |
[77 000 -91 000 ] |
[6 500 -7 500 ] |
[23 000 -27 000 ] |
[6 000 -7 000 ] |
Source: Eurostat and Surveillance database |
3.
DUMPING
3.1.
The People’s Republic of China
3.1.1.
Procedure for the determination of the normal value under Article 2(6a) of the basic Regulation
3.1.2.
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 readily available 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 (‘FOP’) |
Common Mercosur Nomenclature (NCM) |
Undistorted value in Chinese yuan (‘CNY’) |
Unit of measurement |
Source of information |
Iron Ore Powder For Sintering |
260111 |
1,112 |
kg |
GTA |
Chromium Oxide |
281910 |
18,319 |
kg |
GTA |
Hot-Rolled Steel |
720827 |
5,774 |
kg |
Metal Bulletin |
Iron ore pellets |
26011210 |
1,209 |
kg |
GTA |
Gas Coal |
270112 |
1,230 |
kg |
Metal Bulletin |
Steel Scrap/By-Co-products |
720449 |
2,392 |
kg |
GTA |
Pulverized Coal |
270111 |
0,706 |
kg |
GTA |
Ferro-molybdenum |
720270 |
113,684 |
kg |
GTA |
Manganese |
81110010 , 81110020 , 81110090 |
13,210 |
kg |
GTA |
Coke |
27040011 , 27040012 |
2,027 |
kg |
GTA |
Coking Coal |
270112 |
1,230 |
kg |
Metal bulletin |
Iron Ore Powder |
260111 |
1,112 |
kg |
GTA |
Gas-Fat Coal |
270112 |
1,230 |
kg |
Metal bulletin |
Fat Coal |
270112 |
1,230 |
kg |
Metal Bulletin |
Steam Coal |
270111 |
0,706 |
kg |
GTA |
Mixed Steel Scrap |
720449 |
2,392 |
kg |
GTA |
Heavy Steel Scrap |
720449 |
2,392 |
kg |
GTA |
Quicklime |
252210 |
0,850 |
kg |
GTA |
Continuous Casting Slab |
720719 |
3,126 |
kg |
GTA |
Cold-Rolled Continuous Annealed Coils |
720918 |
6,597 |
kg |
Metal Bulletin |
Hot Pressed Iron Block |
732690 , 73269010 , 73269090 |
94,693 |
kg |
GTA |
Minus Sieve |
27040011 , 27040012 , 27040090 |
2,030 |
kg |
GTA |
Iron ore pellets |
26011210 |
1,209 |
kg |
GTA |
Lump Ore |
260111 |
1,112 |
kg |
GTA |
Iron Ore Powder |
260111 |
1,112 |
kg |
GTA |
High Purity Slag Iron |
261900 |
0,747 |
kg |
GTA |
Silicon Steel Scrap |
720449 |
2,392 |
kg |
GTA |
Corner Scrap Packing Block |
720449 |
2,392 |
kg |
GTA |
Leftovers |
720449 |
2,392 |
kg |
GTA |
Aluminium Extrusion |
760429 |
51,287 |
kg |
GTA |
Recycled Iron Powder |
260111 |
0,961 |
kg |
GTA |
Recycled Mill Scale |
261900 |
0,750 |
kg |
GTA |
Recycled Water Granulated Slag |
261800 |
0,785 |
kg |
GTA |
Recycled High-Purity Iron Slag |
261900 |
0,750 |
kg |
GTA |
Recycled Heavy Steel Scrap |
720449 |
2,392 |
kg |
GTA |
Recycled Mixed Steel Scrap |
720449 |
2,392 |
kg |
GTA |
Gas |
|
2,257 |
m3 |
Boletim Mensal de Acompanhamento da Industria de Gas Natural (Brazil) |
Electricity |
|
5,034 |
kWh |
EDP Brasil |
Labour |
|
51 600 27,112 |
year hour |
ILO statistics |
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
3.1.6.7.
Calculation
3.1.6.8.
Export price
3.1.6.9.
Comparison
3.1.6.10.
Dumping margins
Company |
Provisional dumping margin |
Baoshan Iron & Steel Co., Ltd. |
43,3 % |
Handan Jintai Packing Material Co., Ltd |
53,9 % |
Company |
Provisional dumping margin |
Baoshan Iron & Steel Co., Ltd. |
43,3 % |
Handan Jintai Packing Material Co., Ltd |
53,9 % |
Other cooperating companies |
45,1 % |
All other companies |
77,9 % |
3.2.
Brazil
3.2.1.
Normal Value
3.2.2.
Export price
3.2.3.
Comparison
3.2.4.
Dumping margin
Company |
Provisional dumping margin |
Companhia Siderúrgica Nacional |
66,8 % |
All other companies |
66,8 % |
4.
INJURY
4.1.
Definition of the Union industry and Union production
4.2.
Union consumption
|
2018 |
2019 |
2020 |
Investigation period |
Total Union consumption |
[522 000 -611 000 ] |
[508 000 -595 000 ] |
[506 000 -593 000 ] |
[505 000 -591 000 ] |
Index |
100 |
97 |
97 |
97 |
Source: Eurostat, Eurofer and verified questionnaire replies |
4.3.
Imports from the countries concerned
4.3.1.
Cumulative assessment of the effects of imports from the countries concerned
4.3.2.
Volume and market share of the imports from the countries concerned
|
2018 |
2019 |
2020 |
Investigation period |
Volume of imports from the PRC |
[56 000 -66 000 ] |
[66 000 -77 000 ] |
[80 000 -94 000 ] |
[64 000 -75 000 ] |
Index |
100 |
118 |
143 |
114 |
Volume of imports from Brazil |
[12 000 -14 000 ] |
[3 000 -4 600 ] |
[8 000 -10 000 ] |
[14 000 -16 000 ] |
Index |
100 |
32 |
70 |
113 |
Volume of imports from countries concerned |
[68 000 -80 000 ] |
[69 000 -82 000 ] |
[88 000 -104 000 ] |
[78 000 -91 000 ] |
Index |
100 |
102 |
129 |
113 |
Market share the PRC (%) |
[10 -11 ] |
[12,5 -13,5 ] |
[15 -16 ] |
[12 -13 ] |
Index |
100 |
121 |
147 |
117 |
Market share Brazil (%) |
[2 -3 ] |
[0,5 -1,5 ] |
[1 -2 ] |
[2 -3 ] |
Index |
100 |
33 |
72 |
117 |
Market share countries concerned (%) |
[12 -14 ] |
[13 -15 ] |
[16 -18 ] |
[14 -16 ] |
Index |
100 |
105 |
133 |
117 |
Source: Eurostat |
4.3.3.
Prices of the imports from the countries concerned and price undercutting
|
2018 |
2019 |
2020 |
Investigation period |
Import price the PRC |
771 |
761 |
701 |
721 |
Index |
100 |
99 |
91 |
93 |
Import price Brazil |
701 |
654 |
619 |
690 |
Index |
100 |
93 |
88 |
98 |
Import price countries concerned |
759 |
755 |
693 |
715 |
Index |
100 |
99 |
91 |
94 |
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 |
Investigation period |
Production volume (tonnes) |
[480 000 -562 000 ] |
[464 000 -544 000 ] |
[428 000 -501 000 ] |
[439 000 -513 000 ] |
Index |
100 |
97 |
89 |
91 |
Production capacity (tonnes) |
[581 000 -680 000 ] |
[581 000 -680 000 ] |
[581 000 -680 000 ] |
[581 000 -680 000 ] |
Index |
100 |
100 |
100 |
100 |
Capacity utilisation (%) |
[82 -89 ] |
[80 -86 ] |
[73 -79 ] |
[75 -81 ] |
Index |
100 |
97 |
89 |
91 |
Source: Eurofer and sampled Union producers |
4.4.2.2.
Sales volume and market share
|
2018 |
2019 |
2020 |
Investigation period |
Sales volume on the Union market (tonnes) |
[336 000 -394 000 ] |
[336 000 -394 000 ] |
[317 000 -371 000 ] |
[337 000 -394 000 ] |
Index |
100 |
100 |
94 |
100 |
Market share (%) |
[61 -66 ] |
[63 -68 ] |
[60 -64 ] |
[64 -68 ] |
Index |
100 |
103 |
97 |
104 |
Source: Eurofer and sampled Union producers |
4.4.2.3.
Employment and productivity
|
2018 |
2019 |
2020 |
Investigation period |
Number of employees |
[680 -790 ] |
[820 -960 ] |
[840 -980 ] |
[770 -900 ] |
Index |
100 |
122 |
124 |
113 |
Productivity (tonnes/employee) |
[658 -770 ] |
[523 -612 ] |
[473 -553 ] |
[530 -621 ] |
Index |
100 |
79 |
72 |
81 |
Source: Eurofer and sampled Union producers |
4.4.2.4.
Growth
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 |
Investigation period |
Average unit sales price in the Union on the total market |
[780 -910 ] |
[800 -930 ] |
[760 -890 ] |
[780 -910 ] |
Index |
100 |
102 |
97 |
100 |
Unit cost of production |
[770 -900 ] |
[810 -950 ] |
[810 -940 ] |
[840 -980 ] |
Index |
100 |
106 |
105 |
109 |
Source: sampled Union producers |
4.4.3.2.
Labour costs
|
2018 |
2019 |
2020 |
Investigation period |
Average labour costs per employee |
[71 000 -83 000 ] |
[72 000 -85 000 ] |
[68 000 -80 000 ] |
[71 000 -83 000 ] |
Index |
100 |
102 |
96 |
100 |
Source: sampled Union producers |
4.4.3.3.
Inventories
|
2018 |
2019 |
2020 |
Investigation period |
Closing stocks (tonnes) |
[37 900 -44 400 ] |
[41 800 -48 900 ] |
[22 700 -26 600 ] |
[33 700 -39 500 ] |
Index |
100 |
110 |
60 |
89 |
Closing stocks as a percentage of production (%) |
[7 -9 ] |
[9 -11 ] |
[5 -7 ] |
[7 -9 ] |
Index |
100 |
115 |
68 |
98 |
Source: sampled Union producers |
4.4.3.4.
Profitability, cash flow, investments, return on investments and ability to raise capital
|
2018 |
2019 |
2020 |
Investigation period |
Profitability of sales in the Union to unrelated customers (% of sales turnover) |
[1 -3 ] |
[(-1 )-(-3 )] |
[(-7 )-(-9 )] |
[(-8 )-(-10 )] |
Index |
100 |
- 137 |
- 414 |
- 505 |
Cash flow (EUR) |
[10 000 000 - 11 700 000 ] |
[1 000 000 - 2 000 000 ] |
[(-5 400 000 ) - (-6 300 000 )] |
[(-9 500 000 ) - (-11 150 000 )] |
Index |
100 |
9 |
-54 |
-95 |
Investments (EUR) |
[16 820 000 - 19 690 000 ] |
[22 750 000 - 26 630 000 ] |
[28 400 000 - 33 250 000 ] |
[30 000 000 - 35 130 000 ] |
Index |
100 |
135 |
169 |
178 |
Return on investments (%) |
[1 -2 ] |
[(-1 )-(-2 )] |
[(-3 )-(-4 )] |
[(-4 )-(-5 )] |
Index |
100 |
- 137 |
- 373 |
- 461 |
Source: sampled Union producers |
4.4.4.
Conclusion on injury
5.
CAUSATION
5.1.
Effects of the dumped imports
5.1.1.
Volume and market share of the dumped imports from the countries concerned
5.1.2.
Price of the dumped imports from the countries concerned and price effects
5.1.3.
Causal link between the dumped imports from the countries concerned and the material injury of the Union industry
5.2.
Effects of other factors
5.2.1.
Imports from third countries
Country |
|
2018 |
2019 |
2020 |
Investigation period |
United. Kingdom |
Volume (in tonnes) |
[67 000 -78 000 ] |
[68 000 -78 000 ] |
[73 000 -80 000 ] |
[60 000 -85 000 ] |
|
Index |
100 |
102 |
109 |
91 |
|
Market share (%) |
[11 -14 ] |
[12 -15 ] |
[13 -16 ] |
[11 -14 ] |
|
Index |
100 |
105 |
112 |
94 |
|
Average price (EUR/tonne) |
850 |
854 |
837 |
839 |
|
Index |
100 |
100 |
98 |
98 |
Japan |
Volume (in tonnes) |
[8 900 -10 500 ] |
[11 800 -13 900 ] |
[14 400 -17 000 ] |
[13 400 -15 800 ] |
|
Index |
100 |
132 |
161 |
150 |
|
Market share (%) |
[1 -2 ] |
[2 -3 ] |
[2,5 -3,5 ] |
[2 -3 ] |
|
Index |
100 |
135 |
166 |
155 |
|
Average price (EUR/tonne) |
850 |
848 |
777 |
776 |
|
Index |
100 |
100 |
91 |
91 |
South Korea |
Volume (in tonnes) |
[11 600 -13 600 ] |
[4 300 -5 100 ] |
[3 900 -4 500 ] |
[4 700 -5 500 ] |
|
Index |
100 |
36 |
33 |
40 |
|
Market share (%) |
[2 -3 ] |
[0,5 -1,5 ] |
[0,5 -1,5 ] |
[0,5 -1,5 ] |
|
Index |
100 |
38 |
34 |
42 |
|
Average price (EUR/tonne) |
802 |
855 |
771 |
763 |
|
Index |
100 |
107 |
96 |
95 |
Other third countries |
Volume (in tonnes) |
[29 000 -34 000 ] |
[17 000 -20 000 ] |
[8 000 -9 000 ] |
[11 000 -13 000 ] |
|
Index |
100 |
59 |
29 |
37 |
|
Market share (%) |
[5 -7 ] |
[3 -5 ] |
[1 -3 ] |
[2 -4 ] |
|
Index |
100 |
60 |
29 |
38 |
|
Average price (EUR/tonne) |
869 |
805 |
732 |
812 |
|
Index |
100 |
93 |
84 |
93 |
Total of all third countries except the countries concerned |
Volume (in tonnes) |
[117 000 - 137 000 ] |
[101 000 - 119 000 ] |
[100 000 - 117 000 ] |
[90 000 - 105 000 ] |
|
Index |
100 |
87 |
85 |
77 |
|
Market share (%) |
[21 -24 ] |
[18 -21 ] |
[18 -21 ] |
[16 -19 ] |
|
Index |
100 |
89 |
88 |
79 |
|
Average price (EUR/tonne) |
850 |
845 |
817 |
822 |
|
Index |
100 |
99 |
96 |
97 |
Source: Eurostat |
5.2.2.
The COVID-19 pandemic
5.2.3.
The evolution of the cost of production
5.2.4.
Export performance of the Union industry
|
2018 |
2019 |
2020 |
Investigation period |
Export volume (tonnes) |
[105 000 -123 000 ] |
[110 000 -128 000 ] |
[109 000 -127 000 ] |
[98 000 -115 000 ] |
Index |
100 |
104 |
103 |
93 |
Average price (EUR/tonne) |
[750 -880 ] |
[760 -890 ] |
[710 -840 ] |
[720 -840 ] |
Index |
100 |
101 |
95 |
94 |
Source: Eurofer for export volumes and average price from sampled Union producers |
5.2.5.
Effect of yearly contracts
5.2.6.
Consumption
5.2.7.
Conclusion on causation
6.
LEVEL OF MEASURES
6.1.
Underselling margin calculation
Country |
Company |
Provisional dumping margin |
Provisional underselling margin |
The People’s Republic of China |
Baoshan Iron & Steel Co., Ltd |
43,3 % |
33,2 % |
|
Handan Jintai Packing Material Co., Ltd. |
53,9 % |
23,7 % |
|
Other cooperating companies |
45,1 % |
31,6 % |
Brazil |
Companhia Siderúrgica Nacional |
66,8 % |
52,0 % |
6.2.
Examination of the margin adequate to remove the injury to the Union industry in relation to the PRC
7.
UNION INTEREST
7.1.
Union interest under Article 7(2b) of the basic Regulation
7.1.1.
Spare capacities in the exporting country
7.1.2.
Competition for raw materials
7.1.3.
Effect on supply chains for Union companies
7.1.4.
Conclusion on Union interest under Article 7(2b) of the basic Regulation
7.2.
Union interest under Article 21 of the basic Regulation
7.2.1.
Interest of the Union industry
7.2.2.
Interest of users and unrelated importers and traders
7.2.3.
Conclusion on Union interest
8.
PROVISIONAL ANTI-DUMPING MEASURES
Country |
Company |
Provisional dumping margin |
Provisional injury margin |
Provisional anti-dumping duty |
The People’s Republic of China |
Baoshan Iron & Steel Co., Ltd |
43,3 % |
33,2 % |
33,2 % |
|
Handan Jintai Packing Material Co., Ltd. |
53,9 % |
53,9 % |
53,9 % |
|
Other cooperating companies |
45,1 % |
36,7 % |
36,7 % |
|
All other companies |
77,9 % |
77,9 % |
77,9 % |
Brazil |
Companhia Siderúrgica Nacional |
66,8 % |
52,0 % |
52,0 % |
|
All other companies |
66,8 % |
52,0 % |
52,0 % |
9.
INFORMATION AT PROVISIONAL STAGE
10.
FINAL PROVISIONS
Article 1
Country |
Company |
Provisional anti-dumping duty |
TARIC additional code |
People’s Republic of China |
Baoshan Iron & Steel Co., Ltd |
33,2 % |
C039 |
|
Handan Jintai Packing Material Co., Ltd. |
53,9 % |
C862 |
|
Other cooperating companies: GDH Zhongyue (Zhongshan) Tinplate Industry Co.,Ltd. Shougang Jingtang United Iron & Steel Co., Ltd. |
36,7 % |
C137 |
|
All other companies |
77,9 % |
C999 |
Brazil |
Companhia Siderúrgica Nacional |
52,0 % |
C212 |
|
All other companies |
52,0 % |
C999 |