COMMISSION IMPLEMENTING REGULATION (EU) 2022/547
of 5 April 2022
imposing a definitive anti-dumping duty on imports of superabsorbent polymers originating in the Republic of Korea
1.
PROCEDURE
1.1.
Initiation
1.2.
Comments on initiation
1.2.1.
Examination of Union interest in the complaint
1.2.2.
Complaint inflated dumping and undercutting margin
1.2.3.
Level of trade
1.2.4.
Open version of complaint does not allow understanding of price undercutting information
1.2.5.
Aggressive pricing from Far East Asian imports in 2019
1.2.6.
Unjustified target profit in complaint
1.2.7.
Investment data in the complaint should not be treated as confidential
1.2.8.
Evidence for causal link to South Korean imports
1.3.
Registration of imports, non-imposition of provisional measures and subsequent procedure
1.4.
Investigation period and period considered
1.5.
Interested parties
1.6.
Sampling
1.6.1.
Sampling of Union producers
1.6.2.
Sampling of importers
1.6.3.
Sampling of exporting producers in the Republic of Korea
1.7.
Questionnaire replies and verification visits
1.8.
Definitive disclosure
2.
PRODUCT CONCERNED AND LIKE PRODUCT
2.1.
Product concerned
2.2.
Like product
2.3.
Claims regarding product scope
2.3.1.
Exclusion request for spec-in products
2.3.2.
Exclusion request for odour-control SAP
2.3.3.
Exclusion request for Bio SAP
2.3.4.
Exclusion request for industrial SAP
2.3.5.
PCN breakdown proposals
2.3.6.
Product exclusion request for SAP Generation 8 & 9
2.3.7.
Product exclusion request by Kimberly-Clark
3.
DUMPING
3.1.
Normal value
3.2.
Export price
3.3.
Undertaking offer
3.4.
Comparison
3.5.
Dumping margin
Company |
Definitive dumping margin |
LG Chem. Ltd. |
13,4 % |
All other companies |
18,8 % |
4.
INJURY
4.1.
Definition of the Union industry and Union production
4.2.
Determination of the relevant Union market
4.3.
Union consumption
|
2017 |
2018 |
2019 |
IP |
Total Union consumption |
[630 000 - 665 000 ] |
[630 000 - 665 000 ] |
[630 000 - 665 000 ] |
[630 000 - 665 000 ] |
Index |
100 |
100 |
100 |
100 |
Source: sampled and non-sampled Union producers as well as Eurostat |
4.4.
Imports from the country concerned
4.4.1.
Volume and market share of the imports from the country concerned
|
2017 |
2018 |
2019 |
IP |
Volume of imports from the country concerned (tonnes) |
83 499 |
94 343 |
114 896 |
110 903 |
Index |
100 |
113 |
138 |
133 |
Market share |
[12 %-14 %] |
[13 %-15 %] |
[16 %-18 %] |
[16 %-18 %] |
Index |
100 |
114 |
138 |
133 |
Source: Eurostat and TRASS data |
4.4.2.
Prices of the imports from the country concerned and price undercutting
|
2017 |
2018 |
2019 |
IP |
Import price |
1 191 |
1 252 |
1 169 |
1 074 |
Index |
100 |
105 |
98 |
90 |
Source: TRASS data provided in the complaint. |
4.4.3.
Claim of no undercutting in 2018 due to price increases
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
|
2017 |
2018 |
2019 |
IP |
Production volume (tonnes) |
[525 000 – 560 000 ] |
[530 000 – 565 000 ] |
[540 000 – 575 000 ] |
[520 000 - 555 000 ] |
Index |
100 |
102 |
105 |
98 |
Production capacity (tonnes) |
[540 000 – 580 000 ] |
[600 000 – 640 000 ] |
[650 000 – 690 000 ] |
[650 000 – 690 000 ] |
Index |
100 |
109 |
117 |
117 |
Capacity utilisation |
[93 %-95 %] |
[88 %-90 %] |
[84 %-86 %] |
[78 %-80 %] |
Index |
100 |
94 |
90 |
83 |
Source: sampled and non-sampled Union producers |
4.5.2.2. Drop in capacity utilisation caused by increase of capacity
4.5.2.3. Capacity of Sumitomo Seika not considered
4.5.2.4. Sales volume and market share
|
2017 |
2018 |
2019 |
IP |
Total sales volume in the Union market (tonnes) |
[350 000 – 380 000 ] |
[370 000 – 400 000 ] |
[370 000 – 400 000 ] |
[320 000 – 350 000 ] |
Index |
100 |
104 |
103 |
89 |
Market share |
[56 %-58 %] |
[58 %-60 %] |
[57 %-59 %] |
[49 %-51 %] |
Index |
100 |
105 |
103 |
88 |
Source: sampled and non-sampled Union producers |
4.5.2.5. Growth
4.5.2.6. Employment and productivity
|
2017 |
2018 |
2019 |
IP |
Number of employees |
[1 000 – 1 150 ] |
[1 000 – 1 150 ] |
[950 – 1 100 ] |
[950 – 1 100 ] |
Index |
100 |
98 |
92 |
91 |
Productivity (tonnes/FTE) |
492 |
510 |
564 |
529 |
Index |
100 |
104 |
115 |
108 |
Source: sampled and non-sampled Union producers |
4.5.2.7. Magnitude of the dumping margin and recovery from past dumping
4.5.3.
Microeconomic indicators
4.5.3.1. Prices and factors affecting prices
|
2017 |
2018 |
2019 |
IP |
Average unit sales price in the Union (EUR/tonne) |
[1 200 – 1 500 ] |
[1 250 – 1 550 ] |
[1 250 – 1 550 ] |
[1 000 – 1 300 ] |
Index |
100 |
104 |
103 |
85 |
Unit cost of production (EUR/tonne) |
[1 200 – 1 500 ] |
[1 400 – 1 700 ] |
[1 400 – 1 700 ] |
[1 200 – 1 500 ] |
Index |
100 |
121 |
118 |
105 |
Source: sampled Union producers |
4.5.3.2. Labour costs
|
2017 |
2018 |
2019 |
IP |
Average labour costs per employee (EUR) |
[110 000 – 125 000 ] |
[110 000 – 125 000 ] |
[110 000 – 125 000 ] |
[110 000 – 125 000 ] |
Index |
100 |
107 |
103 |
102 |
Source: sampled Union producers |
4.5.3.3. Inventories
|
2017 |
2018 |
2019 |
IP |
Closing stocks (tonnes) |
[50 000 – 60 000 ] |
[50 000 – 60 000 ] |
[70 000 – 80 000 ] |
[75 000 – 85 000 ] |
Index |
100 |
92 |
124 |
142 |
Closing stocks as a percentage of production |
[20 % -25 %] |
[15 % -18 %] |
[20 % -25 %] |
[20 % -25 %] |
Index |
100 |
87 |
105 |
121 |
Source: sampled Union producers |
4.5.3.4. Profitability, cash flow, investments, return on investments and ability to raise capital
|
2017 |
2018 |
2019 |
IP |
Profitability of sales in the Union to unrelated customers (% of sales turnover) |
[-2 % to -7 %] |
[-10 % to -15 %] |
[-5 % to -10 %] |
[-15 % to -20 %] |
Index |
(- 100 ) |
(- 469 ) |
(- 324 ) |
(- 756 ) |
Cash flow (EUR) |
[-5 000 to -15 000 ] |
[5 000 to 15 000 ] |
[10 000 to 20 000 ] |
[5 000 to 15 000 ] |
Index |
(- 100 ) |
126 |
182 |
73 |
Investments (EUR) |
[15 000 000 – 25 000 000 ] |
[300 000 000 – 400 000 000 ] |
[5 000 000 – 15 000 000 ] |
[1 000 000 – 10 000 000 ] |
Index |
100 |
1 749 |
37 |
19 |
Return on investments |
[-1 % to -6 %] |
[-5 % to -10 %] |
[-5 % to -10 %] |
[-10 % to -15 %] |
Index |
(- 100 ) |
(- 630 ) |
(- 508 ) |
(-1 281 ) |
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.
Increased demand of spec-in products
5.2.2.
Price formula in raw material supply contracts
5.2.3.
Imports from third countries
Country |
|
2017 |
2018 |
2019 |
IP |
Japan |
Volume (tonnes) |
[85 000 – 95 000 ] |
[60 000 – 70 000 ] |
[45 000 – 55 000 ] |
[105 000 – 115 000 ] |
Index |
100 |
72 |
47 |
122 |
|
Market share |
[11 % - 15 %] |
[8 % - 11 %] |
[5 % - 8 %] |
[14 % - 18 %] |
|
Index |
100 |
73 |
54 |
122 |
|
Average price (EUR/tonne) |
[1 200 – 1 500 ] |
[1 200 – 1 500 ] |
[1 200 – 1 500 ] |
[1 000 – 1 300 ] |
|
Index |
100 |
101 |
105 |
87 |
|
Turkey |
Volume (tonnes) |
43 571 |
46 929 |
52 626 |
54 537 |
Index |
100 |
108 |
121 |
125 |
|
Market share |
[6 %-8 %] |
[6 %-8 %] |
[7 %-9 %] |
[7 %-9 %] |
|
Index |
100 |
108 |
121 |
125 |
|
Average price (EUR/tonne) |
1 140 |
1 155 |
1 088 |
981 |
|
Index |
100 |
101 |
96 |
86 |
|
USA |
Volume (tonnes) |
40 494 |
34 952 |
30 911 |
30 952 |
Index |
100 |
87 |
77 |
76 |
|
Market share |
[5 %-7 %] |
[4 %-6 %] |
[4 %-6 %] |
[4 %-6 %} |
|
Index |
100 |
88 |
75 |
75 |
|
Average price (EUR/tonne) |
3 646 |
3 936 |
4 522 |
4 431 |
|
Index |
100 |
108 |
124 |
122 |
|
Other third countries |
Volume (tonnes) |
32 587 |
29 109 |
29 046 |
28 594 |
Index |
100 |
89 |
89 |
88 |
|
Market share |
[4 %-6 %] |
[3 %-5 %] |
[3 %-5 %] |
[3 %-5 %] |
|
Index |
100 |
90 |
89 |
88 |
|
Average price (EUR/tonne) |
3 407 |
3 176 |
3 070 |
3 149 |
|
Index |
100 |
93 |
90 |
92 |
|
Source: Eurostat, Japanese figures adjusted by confidential market information. |
5.2.4.
Export performance of the Union industry
|
2017 |
2018 |
2019 |
IP |
Export volume (tonnes) |
[90 000 – 105 000 ] |
[95 000 – 110 000 ] |
[115 000 – 130 000 ] |
[135 000 – 150 000 ] |
Index |
100 |
102 |
124 |
145 |
Average price (EUR/tonne) |
[1 000 – 1 300 ] |
[1 200 – 1 500 ] |
[1 200 – 1 500 ] |
[1 000 – 1 300 ] |
Index |
100 |
123 |
118 |
98 |
Source: sampled Union producers |
5.2.5.
COVID-19 pandemic
5.2.6.
Injury caused by costs of capacity increases
5.2.7.
Significant R&D costs
5.2.8.
Global price negotiations
5.3.
Conclusion on causation
6.
UNION INTEREST
6.1.
Interest of the Union industry
6.2.
Interest of users
6.3.
Other factors
6.4.
Conclusion on Union interest
7.
LEVEL OF MEASURES
7.1.
Injury elimination level (injury margin)
Company |
Definitive dumping margin |
Definitive injury margin |
LG Chem Ltd. |
13,4 % |
34,4 % |
All other companies |
18,8 % |
101,2 % |
8.
DEFINITIVE MEASURES
Company |
Dumping margin |
Injury margin |
Definitive anti-dumping duty |
LG Chem Ltd. |
13,4 % |
34,4 % |
13,4 % |
All other companies |
18,8 % |
101,2 % |
18,8 % |
9.
FINAL PROVISIONS
Article 1
Company |
Definitive anti-dumping duty rate (%) |
TARIC additional code |
LG Chem Ltd. |
13,4 % |
C766 |
All other companies |
18,8 % |
C999 |