COMMISSION IMPLEMENTING REGULATION (EU) 2021/939
of 10 June 2021
imposing a provisional anti-dumping duty on imports of mono ethylene glycol originating in the United States of America and the Kingdom of Saudi Arabia
1. PROCEDURE
1.1.
Initiation
1.2.
Interested parties
1.3.
Comments on initiation
1.3.1.
Comments on dumping
1.3.2.
Comments on injury
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 United States of America
1.4.4.
Sampling of exporting producers in the KSA
1.5.
Questionnaire replies and remote cross-checks
1.6.
Investigation period and period considered
2. PRODUCT CONCERNED AND LIKE PRODUCT
2.1.
Product concerned
2.2.
Like product
2.3.
Claims regarding product scope
3. DUMPING
3.1.
KSA
3.1.1.
Normal value
3.1.2.
Adjustments to the cost of manufacturing
3.1.3.
Export price
3.1.4.
Comparison
3.1.5.
Dumping margin
Company |
Provisional dumping margin |
Saudi Kayan petrochemical company (Saudi Kayan) |
11,1 % |
Yanbu National Petrochemical Company (Yansab) |
11,1 % |
Eastern Petrochemical Company (Sharq) |
11,1 % |
Saudi Yanbu Petrochemical Company (Yanpet) |
11,1 % |
Arabian Petrochemical Company (Petrokemya) |
11,1 % |
Jubail United Petrochemical Company (United) |
11,1 % |
All other companies |
11,1 % |
3.2.
United States of America
3.2.1.
Normal value
3.2.2.
Allocation of costs to the product concerned
3.2.3.
Export price
3.2.4.
Construction of the export price when sold to a related processor in the Union
3.2.5.
Comparison
3.2.6.
Dumping margins
Company |
Provisional dumping margin |
Lotte Chemical Louisiana LLC |
8,5 % |
MEGlobal Americas Inc |
38,3 % |
Company |
Provisional dumping margin |
Lotte Chemical Louisiana LLC |
8,5 % |
MEGlobal Americas Inc |
38,3 % |
Other cooperating companies |
13,5 % |
All other companies |
52,0 % |
4. INJURY
4.1.
Definition of the Union industry and Union production
4.2.
Determination of the relevant Union market
4.3.
Union consumption
Table 1 Union consumption (tonnes) |
||||
|
2017 |
2018 |
2019 |
Investigation period |
Total Union consumption |
1 687 120 |
1 765 864 |
1 755 524 |
1 624 170 |
Index |
100 |
105 |
104 |
96 |
Captive market |
164 452 |
163 791 |
140 637 |
119 102 |
Index |
100 |
100 |
86 |
72 |
Free market |
1 522 668 |
1 602 073 |
1 614 888 |
1 505 068 |
Index |
100 |
105 |
106 |
99 |
Source: Eurostat, the complainant |
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 the imports from the countries concerned
Table 2 Import volume (tonnes) and market share |
||||
|
2017 |
2018 |
2019 |
Investigation period |
Volume of imports from the countries concerned (tonnes) |
481 466 |
574 965 |
703 348 |
663 835 |
Index |
100 |
119 |
146 |
138 |
Market share (%) |
31,6 |
35,9 |
43,6 |
44,1 |
Index |
100 |
114 |
138 |
139 |
Volume of imports from the United States of America (tonnes) |
57 919 |
73 681 |
209 013 |
270 508 |
Index |
100 |
127 |
361 |
467 |
Market share (%) |
3,8 |
4,6 |
12,9 |
18,0 |
Index |
100 |
121 |
340 |
473 |
Volume of imports from the Kingdom of Saudi Arabia (tonnes) |
423 547 |
501 284 |
494 335 |
393 327 |
Index |
100 |
118 |
117 |
93 |
Market share (%) |
27,8 |
31,3 |
30,6 |
26,1 |
Index |
100 |
112 |
110 |
94 |
Source: Eurostat |
4.4.3.
Prices of the imports from the countries concerned and price undercutting
Table 3 Import prices (EUR/tonne) |
||||
|
2017 |
2018 |
2019 |
Investigation period |
United States of America |
747 |
775 |
508 |
441 |
Index |
100 |
104 |
68 |
59 |
Kingdom of Saudi Arabia |
704 |
746 |
545 |
470 |
Index |
100 |
106 |
77 |
67 |
Countries concerned |
709 |
749 |
534 |
458 |
Index |
100 |
106 |
75 |
65 |
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
Table 4 Production, production capacity and capacity utilisation |
||||
|
2017 |
2018 |
2019 |
Investigation period |
Production volume (tonnes) |
1 165 543 |
1 171 349 |
997 626 |
942 911 |
Index |
100 |
100 |
86 |
81 |
Production capacity (tonnes) |
1 521 000 |
1 521 000 |
1 521 000 |
1 478 500 |
Index |
100 |
100 |
100 |
97 |
Capacity utilisation (%) |
76,6 |
77,0 |
65,6 |
63,8 |
Index |
100 |
100 |
86 |
83 |
Source: verified questionnaire reply of the complainant |
4.5.2.2.
Sales volume and market share
Table 5 Sales volume and market share |
||||
|
2017 |
2018 |
2019 |
Investigation period |
Total sales volume on the Union market – both free and captive sales (tonnes) |
1 106 652 |
1 105 241 |
972 515 |
889 779 |
Index |
100 |
100 |
88 |
80 |
Market share (%) |
65,6 |
62,6 |
55,4 |
54,8 |
Index |
100 |
95 |
84 |
84 |
Captive market sales (tonnes) |
164 452 |
163 791 |
140 637 |
119 102 |
Index |
100 |
100 |
86 |
72 |
Market share of captive market sales (%) |
9,7 |
9,3 |
8,0 |
7,3 |
Index |
100 |
95 |
82 |
75 |
Free market sales (tonnes) |
942 200 |
941 449 |
831 878 |
770 677 |
Index |
100 |
100 |
88 |
82 |
Market share of free market sales (%) |
61,9 |
58,8 |
51,5 |
51,2 |
Index |
|
|
83 |
83 |
Source: Eurostat, verified questionnaire reply of the complainant |
4.5.2.3.
Growth
4.5.2.4.
Employment and productivity
Table 6 Employment and productivity |
||||
|
2017 |
2018 |
2019 |
Investigation period |
Number of employees |
91 |
91 |
88 |
84 |
Index |
100 |
100 |
97 |
92 |
Productivity (tonnes/employee) |
12 868 |
12 907 |
11 372 |
11 159 |
Index |
100 |
100 |
88 |
87 |
Source: verified questionnaire reply of the complainant |
4.5.2.5.
Magnitude of the dumping margin and recovery from past dumping
4.5.3.
Microeconomic indicators
(9)
4.5.3.1.
Prices and factors affecting prices
Table 7 Sales prices in the Union |
||||
|
2017 |
2018 |
2019 |
Investigation period |
Average unit sales price in the Union on the total market (EUR/tonne) |
[688 - 841] |
[722 - 882] |
[509 - 622] |
[418 - 511] |
Index |
100 |
105 |
74 |
61 |
Average unit sales price on the captive market (EUR/tonne) |
[652 - 796] |
[706 - 862] |
[509 - 623] |
[446 - 545] |
Index |
100 |
108 |
78 |
68 |
Average unit sales price on the free market (EUR/tonne) |
[688 - 841] |
[722 - 883] |
[508 - 620] |
[415 - 507] |
Index |
100 |
105 |
74 |
60 |
Unit cost of production (EUR/tonne) |
[552 - 675] |
[568 - 694] |
[557 - 681] |
[478 - 584] |
Index |
100 |
103 |
101 |
87 |
Source: Sampled Union producers |
4.5.3.2.
Labour costs
Table 8 Average labour costs per employee |
||||
|
2017 |
2018 |
2019 |
Investigation period |
Average labour costs per employee (EUR) |
[94 277 - 115 227 ] |
[95 581 - 116 821 ] |
[100 232 - 122 506 ] |
[98 732 - 120 672 ] |
Index |
100 |
101 |
106 |
105 |
Source: Sampled Union producers |
4.5.3.3.
Inventories
Table 9 Inventories |
||||
|
2017 |
2018 |
2019 |
Investigation period |
Closing stocks (tonnes) |
[12 167 – 14 871 ] |
[29 408 – 35 944 ] |
[16 833 – 20 573 ] |
[17 231 – 21 060 ] |
Index |
100 |
242 |
138 |
142 |
Closing stocks as a percentage of production (%) |
[1,7 – 2,0] |
[4,0 – 4,9] |
[2,6 – 3,2] |
[2,7 – 3,3] |
Index |
100 |
239 |
155 |
162 |
Source: Sampled Union producers |
4.5.3.4.
Profitability, cash flow, investments, return on investments and ability to raise capital
Table 10 Profitability, cash flow, investments and return on investments |
||||
|
2017 |
2018 |
2019 |
Investigation period |
Profitability of sales in the Union to unrelated customers (% of sales turnover) |
[16,7 – 20,5] |
[18,6 – 22,7] |
[- 8,3 – -10,2] |
[ -10,8 – - 13,2] |
Index |
100 |
111 |
-50 |
-64 |
Cash flow (thousand EUR) |
[60 866 – 74 392 ] |
[60 197 – 73 574 ] |
[-7 005 – -8 562 ] |
[-16 409 – -20 056 ] |
Index |
100 |
99 |
-12 |
-27 |
Investments (thousand EUR) |
[5 613 – 6 860 ] |
[1 316 – 1 609 ] |
[1 926 – 2 354 ] |
[2 055 – 2 512 ] |
Index |
100 |
23 |
34 |
37 |
Return on investments (%) |
[177 – 216] |
[194 – 237] |
[-34 – -41] |
[-27 – -34] |
Index |
100 |
110 |
-19 |
-16 |
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
Table 11 Imports from third countries |
|||||
Country |
|
2017 |
2018 |
2019 |
Investigation period |
Russia |
Volume (tonnes) |
20 295 |
10 113 |
14 494 |
20 126 |
|
Index |
100 |
50 |
71 |
99 |
|
Market share (%) |
1,3 |
0,6 |
0,9 |
1,3 |
|
Average price (EUR/tonne) |
727 |
810 |
527 |
394 |
|
Index |
100 |
111 |
72 |
54 |
Kuwait |
Volume (tonnes) |
0 |
11 820 |
15 767 |
9 319 |
|
Index |
|
100 |
133 |
79 |
|
Market share (%) |
0,0 |
0,7 |
1,0 |
0,6 |
|
Average price (EUR/tonne) |
|
492 |
358 |
320 |
|
Index |
|
100 |
73 |
65 |
Other third countries |
Volume (tonnes) |
78 707 |
63 725 |
49 400 |
41 110 |
|
Index |
100 |
81 |
63 |
52 |
|
Market share (%) |
5,2 |
4,0 |
3,1 |
2,7 |
|
Average price (EUR/tonne) |
778 |
878 |
670 |
571 |
|
Index |
100 |
113 |
86 |
73 |
Total of all third countries except the countries concerned |
Volume (tonnes) |
99 002 |
85 658 |
79 661 |
70 556 |
|
Index |
100 |
87 |
80 |
71 |
|
Market share (%) |
6,5 |
5,3 |
4,9 |
4,7 |
|
Average price (EUR/tonne) |
768 |
817 |
582 |
487 |
|
Index |
100 |
106 |
76 |
63 |
Source: Eurostat |
5.2.2.
Export performance of the Union industry
Table 12 Export performance of the Union industry |
||||
|
2017 |
2018 |
2019 |
Investigation period |
Total export volume (tonnes) |
46 427 |
29 730 |
23 329 |
23 743 |
Index |
100 |
66 |
48 |
53 |
Average price of the sampled Union producers (EUR/tonne) |
[681 - 833] |
[734 - 898] |
[483 - 590] |
[343 - 419] |
Index |
100 |
108 |
71 |
50 |
Source: Sampled Union producers and verified questionnaire reply of the complainant |
5.2.3.
Captive sales
5.2.4.
Other more profitable products than MEG
5.2.5.
Depreciation expenses
5.2.6.
Cost of raw materials/lack of competitiveness
5.2.7.
COVID-19 pandemic
5.2.8.
MEG as a globally traded commodity
5.2.9.
Price of oil
5.2.10.
US-China ‘trade war’
5.2.11.
Global depression in prices during the period considered
5.2.12.
Self-inflicted injury
5.2.13.
Imports of PET into the Union
Table 13 Total PET imports |
||||
|
2017 |
2018 |
2019 |
Investigation period |
Volume |
706 254 645 |
704 017 403 |
877 616 849 |
797 676 108 |
Index |
100 |
100 |
124 |
113 |
Source: Eurostat |
5.3.
Conclusion on causation
6. LEVEL OF MEASURES
6.1.
Injury margin
Country |
Company |
Provisional dumping margin (%) |
Provisional injury margin (%) |
United States of America |
Lotte Chemical Lousiana LLC |
8,5 % |
38,5 % |
MEGlobal Americas Inc |
38,3 % |
84,9 % |
|
Other cooperating companies |
13,5 % |
46,9 % |
|
All other companies |
52,0 % |
115,0 % |
|
Kingdom of Saudi Arabia |
Saudi Kayan petrochemical company (Saudi Kayan) |
11,1 % |
61,4 % |
Yanbu National Petrochemical Company (Yansab) |
11,1 % |
61,4 % |
|
Eastern Petrochemical Company (Sharq) |
11,1 % |
61,4 % |
|
Saudi Yanbu Petrochemical Company (Yanpet) |
11,1 % |
61,4 % |
|
Arabian Petrochemical Company (Petrokemya) |
11,1 % |
61,4 % |
|
Jubail United Petrochemical Company (United) |
11,1 % |
61,4 % |
|
All other companies |
11,1 % |
61,4 % |
6.2.
Conclusion on the level of measures
Country |
Company |
Provisional anti-dumping duty |
United States of America |
Lotte Chemical Lousiana LLC |
8,5 % |
MEGlobal Americas Inc |
38,3 % |
|
Other cooperating companies |
13,5 % |
|
All other companies |
52,0 % |
|
Kingdom of Saudi Arabia |
Saudi Kayan petrochemical company (Saudi Kayan) |
11,1 % |
Yanbu National Petrochemical Company (Yansab) |
11,1 % |
|
Eastern Petrochemical Company (Sharq) |
11,1 % |
|
Saudi Yanbu Petrochemical Company (Yanpet) |
11,1 % |
|
Arabian Petrochemical Company (Petrokemya) |
11,1 % |
|
Jubail United Petrochemical Company (United) |
11,1 % |
|
All other companies |
11,1 % |
7. UNION INTEREST
7.1.
Interest of the Union industry
7.2.
Interest of unrelated importers/traders, users and suppliers
7.2.1.
General
7.3.
Interest of unrelated importers/traders
7.4.
Interest of users
7.5.
Interest of suppliers
7.6.
Comments received
7.7.
Conclusion on Union interest
8. PROVISIONAL ANTI-DUMPING MEASURES
Country |
Company |
Provisional anti-dumping duty |
Kingdom of Saudi Arabia |
Saudi Kayan petrochemical company (Saudi Kayan) |
11,1 % |
|
Yanbu National Petrochemical Company (Yansab) |
11,1 % |
|
Eastern Petrochemical Company (Sharq) |
11,1 % |
|
Saudi Yanbu Petrochemical Company (Yanpet) |
11,1 % |
|
Arabian Petrochemical Company (Petrokemya) |
11,1 % |
|
Jubail United Petrochemical Company (United) |
11,1 % |
|
All other companies |
11,1 % |
United States of America |
Lotte Chemical Lousiana LLC |
8,5 % |
|
MEGlobal Americas Inc |
38,3 % |
|
Other cooperating companies |
13,5 % |
|
All other companies |
52,0 % |
9. INFORMATION AT PROVISIONAL STAGE
10. FINAL PROVISIONS
Article 1
Country |
Company |
Provisional anti-dumping duty |
TARIC additional code |
Kingdom of Saudi Arabia |
Saudi Kayan petrochemical company (Saudi Kayan) |
11,1 % |
C674 |
Kingdom of Saudi Arabia |
Yanbu National Petrochemical Company (Yansab) |
11,1 % |
C675 |
Kingdom of Saudi Arabia |
Eastern Petrochemical Company (Sharq) |
11,1 % |
C676 |
Kingdom of Saudi Arabia |
Saudi Yanbu Petrochemical Company (Yanpet) |
11,1 % |
C677 |
Kingdom of Saudi Arabia |
Arabian Petrochemical Company (Petrokemya) |
11,1 % |
C678 |
Kingdom of Saudi Arabia |
Jubail United Petrochemical Company (United) |
11,1 % |
C679 |
Kingdom of Saudi Arabia |
All other companies |
11,1 % |
C999 |
United States of America |
Lotte Chemical Louisiana LLC |
8,5 % |
C684 |
United States of America |
MEGlobal Americas Inc |
38,3 % |
C680 |
United States of America |
Other cooperating companies listed in Annex I |
13,5 % |
|
United States of America |
All other companies |
52,0 % |
C999 |
Article 2
Article 3
ANNEX
United States cooperating exporting producers not sampled
Country |
Name |
TARIC additional code |
United States of America |
Indorama Ventures Oxides LLC |
C681 |
United States of America |
Equistar Chemicals, LP |
C682 |
United States of America |
Sasol Chemicals North America LLC |
C683 |