COMMISSION IMPLEMENTING REGULATION (EU) 2021/635
of 16 April 2021
imposing a definitive anti-dumping duty on imports of certain welded pipes and tubes of iron or non-alloyed steel originating in Belarus, the People’s Republic of China and Russia 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
1.5.1.
Sampling
1.5.2.
Sampling of Union producers
1.5.3.
Sampling of importers
1.5.4.
Sampling of exporting producers in the countries concerned
1.6.
Replies to the questionnaire
1.7.
On spot verification and remote cross-checking
1.8.
Subsequent procedure
2.
PRODUCT UNDER REVIEW AND LIKE PRODUCT
2.1.
Product under review
2.2.
Like product
3.
LIKELIHOOD OF CONTINUATION OR RECURRENCE OF DUMPING
3.1.
Belarus
3.1.1.
Continuation of dumping of imports during the review investigation period
3.1.2.
Likelihood of recurrence of dumping should the measures be repealed
(a)
Normal value
(b)
Export price
(c)
Comparison
3.1.2.1. Production capacity and spare capacity in Belarus
3.1.2.2. Attractiveness of the Union market
3.1.2.3. Conclusion on the likelihood of continuation or recurrence of dumping
3.2.
The People’s Republic of China
3.2.1.
Preliminary remarks
3.2.2.
Continuation of dumping of imports during the review investigation period
3.2.2.1. Procedure for the determination of the normal value under Article 2(6a) of the basic Regulation
3.2.2.2. Normal value
(a)
Existence of significant distortions
(1) Introduction
(2) Significant distortions affecting the domestic prices and costs in the PRC
(3) Significant distortions according to Article 2(6a)(b), first indent of the basic Regulation: the market in question being served to a significant extent by enterprises which operate under the ownership, control or policy supervision or guidance of the authorities of the exporting country
(4) Significant distortions according to Article 2(6a)(b), second indent of the basic Regulation: State presence in firms allowing the state to interfere with respect to prices or costs
(5) Significant distortions according to Article 2(6a)(b), third indent of the basic Regulation: public policies or measures discriminating in favour of domestic suppliers or otherwise influencing free market forces
(6) Significant distortions according to Article 2(6a)(b), fourth indent of the basic Regulation: the lack, discriminatory application or inadequate enforcement of bankruptcy, corporate or property laws
(7) Significant distortions according to Article 2(6a)(b), fifth indent of the basic Regulation: wage costs being distorted
(8) Significant distortions according to Article 2(6a)(b), sixth indent of the basic Regulation: access to finance granted by institutions which implement public policy objectives or otherwise not acting independently of the State
(9) Systemic nature of the distortions described
(10) Conclusion
(b)
Representative country
(1) General remarks
(2) A level of economic development similar to the PRC
(3) Production of the product under review in the representative country
(4) Availability of relevant public data in the representative country
(5) Level of social and environmental protection
(6) Conclusion on representative country
(c)
Sources used to establish undistorted costs
(d)
Undistorted costs and benchmarks
Factor of Production |
HS Code |
Source of data |
Unit undistorted value |
Raw Material |
|
|
|
Flat-rolled products of iron or non-alloy steel, of the width of ≥ 600mm, in coils, simply hot-rolled, not clad, plated or coated, of a thickness of ≥ 4,75 mm but < 10mm, not pickled, without patterns in relief |
7208 37 |
GTA |
4,34 CNY/kg |
Flat-rolled products of iron or non-alloy steel, of the width of ≥ 600mm, in coils, simply hot-rolled, not clad, plated or coated, of a thickness of ≥ 3mm but < 4,75, not pickled, without patterns in relief |
7208 38 |
GTA |
3,96 CNY/kg |
Flat-rolled products of iron or non-alloy steel, of the width of ≥ 600mm, in coils, simply hot-rolled, not clad, plated or coated, of a thickness of < 3mm, not pickled, without patterns in relief |
7208 39 |
GTA |
4,05 CNY/kg |
Zinc |
7901 11 |
GTA |
20,69 CNY/kg |
Sulphuric Acid |
2807 00 |
GTA |
0,56 CNY/kg |
Labour |
|||
Labour wages in manufacturing sector |
[N/A] |
See Section 3.2.2.2.(d)(2) |
19,91 CNY/hour |
Energy |
|||
Electricity |
[N/A] |
See Section 3.2.2.2.(d)(3) |
0,88 CNY/kWh |
Natural Gas |
[N/A] |
See Section 3.2.2.2.(d)(4) |
2,73 CNY/m3 |
By-products |
|
|
|
Non-alloy steel scrap |
7204 41 |
GTA |
3,12 CNY/kg |
Non-alloy steel scrap chips |
7204 41 |
GTA |
3,12 CNY/kg |
Non-alloy steel scale scrap |
7204 49 |
GTA |
2,11 CNY/kg |
Zinc Ash |
2620 19 |
GTA |
8,11 CNY/kg |
Hard Zinc |
2620 11 |
GTA |
14,74 CNY/kg |
(1) Raw materials and by-products
(2) Labour
(3) Electricity
(4) Natural gas
(e)
Manufacturing overhead costs, SG&A and profits
(f)
Calculation of normal value
3.2.2.3. Export price
3.2.2.4. Comparison and dumping margin
3.2.2.5. Conclusion
3.2.3.
Likelihood of recurrence of dumping should the measures be repealed.
3.2.3.1. Exports to third countries
(a)
Normal value
(b)
Export price
(c)
Comparison and dumping margins
Country |
% of total ‘world’ imports of the PUI from the PRC |
Dumping margin (%) |
The Philippines |
19,3 |
71,7 |
Peru |
5,3 |
25,6 |
Indonesia |
4,4 |
21,4 |
Singapore |
4,2 |
18,9 |
3.2.3.2. Production capacity and spare capacity in the PRC
3.2.3.3. Availability of other markets
3.2.3.4. Attractiveness of the Union market
3.2.3.5. Conclusion on the likelihood of recurrence of dumping
3.2.4.
Overall conclusion on the likelihood of continuation or recurrence of dumping
3.3.
Russia
3.3.1.
Preliminary remarks
3.3.2.
Continuation of dumping of imports during the review investigation period
3.3.2.1. Normal value
3.3.2.2. Export price
3.3.2.3. Comparison
3.3.2.4. Conclusion
3.3.3.
Likelihood of recurrence of dumping should measures be repealed
3.3.3.1. Exports to third countries
(a)
Normal value
(b)
Export price
(c)
Comparison and dumping margin
3.3.3.2. Production capacity and spare capacity in Russia
3.3.3.3. Attractiveness of the Union market
3.3.3.4. Conclusion on the likelihood of continuation or recurrence of dumping
4.
INJURY
4.1.
Definition of the Union industry and Union production
4.2.
Union consumption
|
2016 |
2017 |
2018 |
Review Investigation period |
Total Union consumption |
499 998 |
505 443 |
577 397 |
541 409 |
Index |
100 |
101 |
115 |
108 |
Source: Eurostat. |
4.3.
Imports from the countries concerned
4.3.1.
Volume and market share of the imports from the countries concerned
|
2016 |
2017 |
2018 |
Review Investigation period |
Volume of imports from Russia |
1 235 |
883 |
1 732 |
1 912 |
Index |
100 |
72 |
140 |
155 |
Market share of imports from Russia (%) |
0,25 |
0,17 |
0,30 |
0,35 |
Index |
100 |
71 |
121 |
143 |
Volume of imports from Belarus |
18 |
0 |
0 |
4 |
Index |
100 |
0 |
0 |
19 |
Market share of imports from Belarus (%) |
0 |
0 |
0 |
0 |
Index |
100 |
0 |
0 |
18 |
Volume of imports from the PRC |
478 |
589 |
424 |
559 |
Index |
100 |
123 |
89 |
117 |
Market share of imports from the PRC (%) |
0,10 |
0,12 |
0,07 |
0,10 |
Index |
100 |
122 |
77 |
108 |
Volume of imports from the countries concerned |
1 731 |
1 472 |
2 156 |
2 475 |
Index |
100 |
85 |
125 |
143 |
Market share of imports from the countries concerned (%) |
0,35 |
0,29 |
0,37 |
0,45 |
Index |
100 |
84 |
108 |
132 |
Source: Eurostat. |
4.3.2.
Prices of the imports from the countries concerned and price undercutting
4.3.2.1. Prices
|
2016 |
2017 |
2018 |
Review Investigation period |
Price imports from Russia |
410,52 |
499,74 |
475,80 |
540,37 |
Index |
100 |
122 |
116 |
132 |
Price imports from Belarus |
101,65 |
0 |
0 |
531,43 |
Index |
100 |
0 |
0 |
523 |
Price imports from the PRC |
1 429,16 |
2 562,52 |
1 954,28 |
1 515,58 |
Index |
100 |
179 |
137 |
106 |
Source: Eurostat. |
4.3.2.2. Price undercutting
4.4.
Imports from third countries other than Russia, Belarus and the PRC
Country |
|
2016 |
2017 |
2018 |
Review Investigation period |
Turkey |
Volume (tonnes) |
76 782 |
105 062 |
147 155 |
151 189 |
|
Index |
100 |
137 |
192 |
197 |
|
Market share (%) |
15 |
21 |
25 |
28 |
|
Average price (EUR/tonne) |
547 |
643 |
702 |
626 |
|
Index |
100 |
117 |
128 |
114 |
India |
Volume (tonnes) |
59 483 |
51 718 |
53 545 |
48 903 |
|
Index |
100 |
87 |
90 |
82 |
|
Market share (%) |
12 |
10 |
9 |
9 |
|
Average price (EUR/tonne) |
540 |
683 |
758 |
740 |
Republic of North Macedonia |
Index |
100 |
126 |
140 |
137 |
|
Volume (tonnes) |
22 239 |
24 472 |
29 702 |
21 040 |
|
Index |
100 |
110 |
134 |
95 |
|
Market share (%) |
4 |
5 |
5 |
4 |
|
Average price (EUR/tonne) |
494 |
607 |
626 |
574 |
|
Index |
100 |
123 |
127 |
116 |
Other third countries |
Volume (tonne) |
51 179 |
49 700 |
64 076 |
51 956 |
|
Index |
100 |
97 |
125 |
102 |
|
Market share (%) |
10 |
10 |
11 |
10 |
|
Average price (EUR/tonne) |
794 |
884 |
907 |
917 |
|
Index |
100 |
111 |
114 |
115 |
Total of all third countries except the countries concerned |
Volume (tonne) |
209 683 |
230 951 |
294 478 |
273 088 |
|
Index |
100 |
110 |
140 |
130 |
|
Market share (%) |
42 |
46 |
51 |
50 |
|
Average price (EUR/tonne) |
600 |
700 |
749 |
698 |
|
Index |
100 |
117 |
125 |
116 |
Source: Eurostat. |
4.5.
Economic situation of the Union industry
4.5.1.
General remarks
4.5.2.
Macroeconomic indicators
(101)
4.5.2.1. Production, production capacity and capacity utilisation
|
2016 |
2017 |
2018 |
Review Investigation period |
Production volume (tonnes) |
319 525 |
286 386 |
305 907 |
291 704 |
Index |
100 |
90 |
96 |
91 |
Production capacity (tonnes) |
804 342 |
803 896 |
799 426 |
791 354 |
Index |
100 |
100 |
99 |
98 |
Capacity utilisation (%) |
40 |
36 |
38 |
37 |
Index |
100 |
90 |
96 |
93 |
Source: Information provided by the applicant, information provided by the sampled Union producers. |
4.5.2.2. Sales volume and market share
|
2016 |
2017 |
2018 |
Review Investigation period |
Total sales volume on the Union market to unrelated customers (tonnes) |
288 584 |
273 020 |
280 763 |
265 846 |
Index |
100 |
95 |
97 |
92 |
Market share (%) |
58 |
54 |
49 |
49 |
Index |
100 |
94 |
84 |
85 |
Source: Information provided by the applicant, information provided by the sampled Union producers. |
4.5.2.3. Growth
4.5.2.4. Employment and productivity
|
2016 |
2017 |
2018 |
Review Investigation period |
Number of employees |
628 |
630 |
624 |
608 |
Index |
100 |
100 |
99 |
97 |
Productivity (tonne/employee) |
508 |
455 |
491 |
480 |
Index |
100 |
89 |
96 |
94 |
Source: Information provided by the applicant, information provided by the sampled Union producers. |
4.5.2.5. Magnitude of the dumping margin and recovery from past dumping
4.5.3.
Microeconomic indicators
(102)
4.5.3.1. Prices and factors affecting prices
|
2016 |
2017 |
2018 |
Review Investigation period |
Average unit sales price in the Union on the total market (EUR/tonne) |
662 |
763 |
825 |
778 |
Index |
100 |
115 |
125 |
118 |
Unit cost of production (EUR/tonne) |
731 |
875 |
913 |
912 |
Index |
100 |
120 |
125 |
125 |
Source: questionnaire replies of the sampled Union producers. |
4.5.3.2. Labour costs
|
2016 |
2017 |
2018 |
Review Investigation period |
Average labour costs per employee (EUR) |
40 005 |
36 579 |
39 466 |
43 066 |
Index |
100 |
91 |
99 |
108 |
Source: questionnaire replies of the sampled Union producers. |
4.5.3.3. Inventories
|
2016 |
2017 |
2018 |
Review Investigation period |
Closing stocks (tonnes) |
20 722 |
12 356 |
14 952 |
17 600 |
Index |
100 |
60 |
72 |
85 |
Source: questionnaire replies of the sampled Union producers. |
4.5.3.4. Profitability, cash flow, investments, return on investments and ability to raise capital
|
2016 |
2017 |
2018 |
Review Investigation period |
Profitability of sales in the Union to unrelated customers (% of sales turnover) |
-6 |
-5 |
-4 |
-11 |
Index |
-100 |
-76 |
-70 |
-177 |
Cash flow (EUR) |
-4 874 323 |
2 363 932 |
-3 670 718 |
-8 123 363 |
Index |
-100 |
48 |
-75 |
-167 |
Investments (EUR) |
2 457 649 |
1 647 452 |
1 301 235 |
2 095 539 |
Index |
100 |
67 |
53 |
85 |
Return on investments (%) |
-18 |
-17 |
-17 |
-41 |
Index |
-100 |
-96 |
-96 |
-228 |
Source: questionnaire replies of the sampled Union producers. |
(a)
Profitability
(b)
Cash flow
(c)
Investments and return on investments
4.6.
Conclusion on injury
5.
LIKELIHOOD OF RECURRENCE OF INJURY ORIGINALLY CAUSED BY DUMPED IMPORTS FROM THE COUNTRIES CONCERNCED IF THE MEASURES WERE REPEALED
5.1.
Spare capacity in the counties concerned and the attractiveness of the Union market
5.2.
Impact of potential imports from the countries concerned on the Union industry’s situation should the measures lapse
6.
UNION INTEREST
6.1.
Interest of the Union industry
6.2.
Interest of unrelated importers, traders and users
6.3.
Conclusion on Union interest
7.
ANTI-DUMPING MEASURES
Article 1
Country |
Company |
Anti-dumping duty |
TARIC additional code |
The People’s Republic of China |
All companies |
90,6 % |
|
Russia |
TMK Group (Seversky Pipe Plant Open Joint Stock Company and Joint Stock Company Taganrog Metallurgical Works) |
16,8 % |
A892 |
OMK Group (Open Joint Stock Company Vyksa Steel Works and Joint Stock Company Almetjvesk Pipe Plant) |
10,1 % |
A893 |
|
All other companies |
20,5 % |
A999 |
|
Belarus |
All companies |
38,1 % |
|