COMMISSION IMPLEMENTING REGULATION (EU) 2020/1336
of 25 September 2020
imposing definitive anti-dumping duties on imports of certain polyvinyl alcohols originating in the People’s Republic of China
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
1.5.
Individual examination
1.6.
Questionnaire replies and verification visits
1.7.
Investigation period and period considered
1.8.
Procedure for the determination of the normal value under Article 2(6a) of the basic Regulation
1.9.
Non-imposition of provisional measures and subsequent procedure
2.
PRODUCT CONCERNED AND LIKE PRODUCT
2.1.
Product concerned
2.2.
Like product
2.3.
Segmentation
2.4.
Claims regarding product scope
3.
DUMPING
3.1.
Normal value
3.1.1.
Existence of significant distortions
3.1.1.1.
Introduction
3.1.1.2.
Significant distortions affecting the domestic prices and costs in the PRC
3.1.1.3.
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
3.1.1.4.
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
3.1.1.5.
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
3.1.1.6.
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
3.1.1.7.
Significant distortions according to Article 2(6a)(b), fifth indent of the basic Regulation: wage costs being distorted
3.1.1.8.
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
3.1.1.9.
Systemic nature of the distortions described
3.1.1.10.
Conclusion
3.1.2.
Representative country
3.1.2.1.
General remarks
3.1.2.2.
A level of economic development similar to the PRC
3.1.2.3.
Production of the product under investigation in the representative country and availability of the relevant public data in the representative country
(a) Choice of the similar product to PVA
(b) Production of the similar product to product under investigation in the representative country and availability of the relevant public data in the representative country
3.1.2.4.
Level of social and environmental protection
3.1.2.5.
Conclusion
3.1.3.
Sources used to establish undistorted costs
3.1.4.
Undistorted costs and benchmarks
3.1.4.1.
Factors of production
Factor of Production |
Code in the Turkish tariff classification |
Undistorted value |
Raw Materials |
||
Polyvinyl alcohol |
3905 30 00 0000 |
16,44 CNY/kg |
Acetic acid |
2915 21 00 001 |
4,85 CNY/kg or 4 853,54 CNY/tonne |
Azodiisobutyronitrile (AZO) / azobisisobutyronitrile (AZN) |
2927 00 00 00 |
27,71 CNY/kg |
Calcium carbide |
2849 10 00 0000 |
5,30 CNY/kg |
Carbon (activated) |
3802 10 00 0000 |
14,73 CNY/kg |
Carbon (catalytic activated with zinc acetate) |
2915 29 00 9019 |
20,44 CNY/kg |
Caustic soda / sodium hydroxide (liquid) |
2815 12 00 0000 |
2,46 CNY/kg |
Coal |
2701 12 |
0,75 CNY/kg or 749,38 CNY/tonne |
Semi-coke |
2704 00 |
2,05 CNY/kg |
Electrode paste |
3801 30 00 0000 |
4,81 CNY/kg |
Limestone |
2521 00 00 0000 |
4,08 CNY/kg |
Methyl alcohol (methanol) |
2905 11 00 101 |
2,59 CNY/kg |
Plastic-paper composite bags |
3923 29 90 0019 |
41,65 CNY/kg |
Polypropylene woven container bags |
6305 33 90 0000 |
32,22 CNY/kg |
Sulfuric acid (pure) |
2807 00 00 0011 |
1,23 CNY/kg or 1 230,74 CNY/tonne |
Vinyl acetate |
2915 32 00 0000 |
7,36 CNY/kg |
Zinc acetate |
2915 29 00 9019 |
20,44 CNY/kg |
Labour |
||
Labour costs in manufacturing sector |
NACE 20 |
47,16 CNY/hour |
Energy |
||
Electricity |
Turkish Statistical Institute |
CNY/kWh (per 1 000 MWh consumption band) 0,45 (20 ~ 70 MWh) 0,44 (70 ~ 150 MWh) 0,44 (> 150 MWh) |
Natural gas |
Turkish Statistical Institute |
1,63 CNY/m3 or 1 632,39 CNY/m3 × 1 000 |
(1)
Raw materials and by-products/waste
(2)
Internally produced inputs used in the production of the product under investigation
(3)
Labour
(4)
Electricity and natural gas
(5)
Consumables/negligible quantities
(6)
Manufacturing overhead costs, SG&A and profits
3.1.4.2.
Application of Article 18 of the basic Regulation to Wan Wei, Mengwei and Shuangxin
3.1.4.3.
Application of Article 18 of the basic Regulation to Sinopec Ningxia
3.1.4.4.
Calculation of the normal value
3.2.
Export price
3.3.
Comparison
3.4.
Dumping margin
Company |
Definitive dumping margin |
Shuangxin Group |
115,6 % |
Sinopec Group |
17,3 % |
Wan Wei Group |
193,2 % |
Company |
Definitive dumping margin |
Shuangxin Group |
115,6 % |
Sinopec Group |
17,3 % |
Wan Wei Group |
193,2 % |
Other cooperating companies |
80,4 % |
All other companies |
193,2 % |
4.
INJURY
4.1.
Definition of the Union industry and Union production
4.2.
Determination of the relevant Union market
4.3.
Union consumption
|
2016 |
2017 |
2018 |
Investigation period |
||
Total Union consumption |
214 000 – 219 000 |
210 000 – 215 000 |
225 000 – 230 000 |
218 000 – 223 000 |
||
Index |
100 |
98 |
106 |
102 |
||
Captive market |
50 000 – 55 000 |
52 500 – 57 500 |
57 500 – 62 500 |
55 000 – 60 000 |
||
Index |
100 |
105 |
116 |
109 |
||
Free market |
162 000 – 167 000 |
155 000 – 160 000 |
165 000 – 170 000 |
162 000 – 167 000 |
||
Index |
100 |
96 |
103 |
100 |
||
|
4.4.
Imports from the country concerned
4.4.1.
Volume and market share of the imports from the country concerned
|
2016 |
2017 |
2018 |
Investigation period |
||
Volume of imports from the PRC in tonnes |
35 285 |
44 216 |
54 326 |
53 930 |
||
Index |
100 |
125 |
154 |
153 |
||
Market share |
20 % – 25 % |
25 % – 30 % |
30 % – 35 % |
30 % – 35 % |
||
Index |
100 |
131 |
149 |
153 |
||
|
4.4.2.
Prices of the imports from the country concerned and price undercutting
|
2016 |
2017 |
2018 |
Investigation period |
||
PRC |
1,49 |
1,39 |
1,34 |
1,49 |
||
Index |
100 |
94 |
90 |
100 |
||
|
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
|
2016 |
2017 |
2018 |
Investigation period |
||
Production volume (tonnes) |
129 310 |
120 807 |
123 492 |
114 235 |
||
Index |
100 |
93 |
95 |
88 |
||
Production capacity (tonnes) |
145 684 |
145 684 |
145 684 |
145 684 |
||
Index |
100 |
100 |
100 |
100 |
||
Capacity utilisation |
89 % |
83 % |
85 % |
78 % |
||
Index |
100 |
93 |
95 |
88 |
||
Production volume on the free market (tonnes) |
75 000 – 80 000 |
62 500 – 67 500 |
600 000 – 65 000 |
55 000 – 60 000 |
||
Index |
100 |
86 |
82 |
75 |
||
|
4.5.2.2.
Sales volume and market share
|
2016 |
2017 |
2018 |
Investigation period |
||
Total sales volume on the Union free market (tonnes) |
60 000 – 65 000 |
55 000 – 60 000 |
45 000 – 50 000 |
40 000 – 45 000 |
||
Index |
100 |
95 |
82 |
73 |
||
Market share |
35 % – 40 % |
35 % – 40 % |
25 % – 30 % |
25 % – 30 % |
||
Index |
100 |
99 |
79 |
73 |
||
|
4.5.2.3.
Growth
4.5.2.4.
Employment and productivity
|
2016 |
2017 |
2018 |
Investigation period |
||
Number of employees (FTE) |
370 |
313 |
324 |
327 |
||
Index |
100 |
85 |
88 |
88 |
||
Productivity (unit/ employee) |
350 |
386 |
382 |
349 |
||
Index |
100 |
110 |
109 |
100 |
||
|
4.5.2.5.
Magnitude of the dumping margin and recovery from past dumping
4.5.3.
Microeconomic indicators
4.5.3.1.
Prices and factors affecting prices
|
2016 |
2017 |
2018 |
Investigation period |
||
Average unit sales price on the free market (EUR/ KG) |
1,50 – 2,50 |
1,50 – 2,50 |
1,75 – 2,75 |
1,75 – 2,75 |
||
Index |
100 |
100 |
111 |
114 |
||
Unit cost of production (EUR/KG) |
1,50 – 2,50 |
1,50 – 2,50 |
2,00 – 3,00 |
2,00 – 3,00 |
||
Index |
100 |
104 |
119 |
124 |
||
|
4.5.3.2.
Labour costs
|
2016 |
2017 |
2018 |
Investigation period |
||
Average labour costs per employee (Index) |
100 |
109 |
104 |
109 |
||
|
4.5.3.3.
Inventories
|
2016 |
2017 |
2018 |
Investigation period |
||
Closing stocks (tonnes) |
15 000 – 25 000 |
5 000 – 15 000 |
5 000 – 15 000 |
5 000 – 15 000 |
||
Index |
100 |
64 |
59 |
60 |
||
|
4.5.3.4.
Profitability, cash flow, investments, return on investments and ability to raise capital
|
2016 |
2017 |
2018 |
Investigation period |
||
Profitability of sales in the Union to unrelated customers (% of sales turnover) |
– 0,5 % – 5,0 % |
– 5 % – 10 % |
– 0,5 % – 5,0 % |
– 10 % – 15 % |
||
Index |
100 |
– 279 |
– 199 |
– 548 |
||
Cash flow (KEUR) |
500 – 5 500 |
15 000 – 20 000 |
5 000 – 10 000 |
– 500 – – 5 500 |
||
Index |
100 |
922 |
535 |
– 80 |
||
Investments (KEUR) |
20 000 – 30 000 |
10 000 – 20 000 |
5 000 – 15 000 |
5 000 – 15 000 |
||
Index |
100 |
49 |
26 |
28 |
||
Return on investments |
– 0,5 % – 5,0 % |
– 2,5 % – 7,5 % |
– 0,5 % – 5,0 % |
– 7,5 % – 12,5 % |
||
Index |
100 |
– 209 |
– 132 |
– 368 |
||
|
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
Country |
|
2016 |
2017 |
2018 |
Investigation period |
||
Taiwan |
Volume (tonnes) |
20 965 |
19 796 |
23 602 |
22 674 |
||
|
Index |
100 |
94 |
113 |
108 |
||
|
Market share |
12 % – 15 % |
12 % – 15 % |
13 % – 16 % |
13 % – 16 % |
||
|
Index |
100 |
98 |
109 |
108 |
||
|
Average price (EUR/KG) |
1,57 |
1,56 |
1,56 |
1,71 |
||
|
Index |
100 |
99 |
99 |
109 |
||
USA |
Volume (tonnes) |
23 700 |
15 643 |
23 379 |
23 427 |
||
|
Index |
100 |
66 |
99 |
99 |
||
|
Market share |
12 % – 15 % |
9 % – 12 % |
12 % – 15 % |
12 % – 15 % |
||
|
Index |
100 |
69 |
96 |
99 |
||
|
Average price (EUR/KG) |
1,75 |
2,03 |
1,84 |
1,90 |
||
|
Index |
100 |
116 |
105 |
108 |
||
Japan |
Volume (tonnes) |
14 980 |
15 410 |
14 655 |
14 522 |
||
|
Index |
100 |
103 |
98 |
97 |
||
|
Market share |
8 % – 11 % |
9 % – 12 % |
7 % – 10 % |
8 % – 11 % |
||
|
Index |
100 |
107 |
94 |
97 |
||
|
Average price (EUR/KG) |
2,33 |
2,50 |
2,65 |
2,82 |
||
|
Index |
100 |
107 |
114 |
121 |
||
Other third countries |
Volume (tonnes) |
7 419 |
3 885 |
2 813 |
4 033 |
||
|
Index |
100 |
52 |
38 |
54 |
||
|
Market share |
3 % – 5 % |
2 % – 4 % |
1 % – 3 % |
2 % – 4 % |
||
|
Index |
100 |
55 |
37 |
55 |
||
|
Average price (EUR/KG) |
2,29 |
1,98 |
2,14 |
2,23 |
||
|
Index |
100 |
86 |
93 |
97 |
||
Total of all third countries except the country concerned |
Volume (tonnes) |
67 064 |
54 734 |
64 448 |
64 656 |
||
|
Index |
100 |
82 |
96 |
96 |
||
|
Market share |
38 % – 43 % |
30 % – 35 % |
36 % – 41 % |
37 % – 42 % |
||
|
Index |
100 |
85 |
93 |
96 |
||
|
Average price (EUR/KG) |
1,88 |
1,98 |
1,93 |
2,06 |
||
|
Index |
100 |
106 |
103 |
109 |
||
|
5.2.2.
Increase of raw material cost
5.2.3.
Self-inflicted injury
5.2.4.
Captive use
5.3.
Conclusion on causation
6.
UNION INTEREST
6.1.
Interest of the Union industry
6.2.
Interest of unrelated importers
6.3.
Interest of users
6.3.1.
PVB-film producers
6.3.2.
Polymerisation application and emulsions producers
6.3.3.
Paper and carton board producers
6.3.4.
Adhesives producers
6.4.
Additional comments after Disclosure
6.5.
Conclusion on Union interest
7.
DEFINITIVE ANTI-DUMPING MEASURES
7.1.
Injury elimination level (Injury margin)
7.2.
Definitive measures
Company |
Dumping margin |
Injury margin |
Definitive anti-dumping duty |
Shuangxin Group |
115,6 % |
72,9 % |
72,9 % |
Sinopec Group |
17,3 % |
57,6 % |
17,3 % |
Wan Wei Group |
193,2 % |
55,7 % |
55,7 % |
Other cooperating companies |
80,4 % |
57,9 % |
57,9 % |
All other companies |
193,2 % |
72,9 % |
72,9 % |
7.3.
Special monitoring clause
8.
DISCLOSURE
Article 1
Company |
Definitive anti-dumping duty (%) |
TARIC additional code |
Shuangxin Group |
72,9 % |
C552 |
Sinopec Group |
17,3 % |
C553 |
Wan Wei Group |
55,7 % |
C554 |
Other cooperating companies listed in Annex I |
57,9 % |
See Annex I |
All other companies |
72,9 % |
C999 |
Article 2
Article 3
ANNEX
Chinese cooperating exporting producers not sampled
Name |
TARIC additional code |
Chang Chun Chemical (Jiangsu) Co., Ltd. |
C555 |