COMMISSION IMPLEMENTING REGULATION (EU) 2020/909
of 30 June 2020
imposing a definitive anti-dumtaping duty on imports of ferro-silicon originating in Russia and the People’s Republic of China, following an expiry review pursuant to Article 11(2) of Regulation (EU) 2016/1036
1.
PROCEDURE
1.1.
Measures in force
1.2.
Request for an expiry review
1.3.
Initiation
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 producers in the PRC and Russia
1.6.
Replies to the questionnaire
1.7.
Verification
1.8.
Procedure for the determination of the normal value under Article 2(6a) of the basic Regulation for the imports of ferro-silicon originating in the PRC
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.
Preliminary remarks
3.1.1.
PRC
3.1.2.
Russia
3.2.
Continuation of dumping of imports during the review investigation period
3.2.1.
PRC
3.2.1.1.
Normal value
(a) Existence of significant distortions
(i)
Significant distortions affecting the domestic prices and costs in the PRC: general economic context
(ii)
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
(iii)
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
(iv)
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
(v)
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
(vi)
Significant distortions according to Article 2(6a)(b), fifth indent of the basic Regulation: wage costs being distorted
(vii)
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
(viii)
Systemic nature of the distortions described
(ix)
Conclusion
(b) Representative country
(i)
General remarks
(ii)
A level of economic development similar to the PRC
(iii)
Production of the product under review in the representative country
(iv)
Availability of the relevant public data in the representative country
(v)
Level of social and environmental protection
(vi)
Conclusion
(c) Sources used to establish undistorted costs
(d) Factors of production
(i)
Introduction
Factor of Production |
Brazilian tariff codes |
Unit undistorted value |
Material |
|
|
Quartz |
2506 10 00 |
241,3 EUR/kg |
Coal |
2701 12 |
129,8 EUR/kg |
Coke |
2704 00 12 |
291,9 EUR/kg |
Wood chips |
4401 21 00 |
82,9 EUR/kg(66) |
Iron scrap (mill scale) |
2619 00 90 |
Cost disregarded(67) |
Limestone |
2515 11 00 |
Cost disregarded(68) |
Carbonaceous paste for Soderberg electrodes |
3801 30 10 |
575,5 EUR/kg |
Labour |
||
Labour wages in manufacturing sector |
[N/A] |
4,34 EUR/hour |
Energy |
||
Electricity |
[N/A] |
0,11 EUR/kWh |
By-product/Waste |
|
|
Microsilica/silica fume |
2811 22 10 |
1 169,8 EUR/kg |
Ferro-silicon slag |
2621 90 00 |
Included in overhead costs |
(ii)
Raw materials and by-products/waste
(iii)
Labour
(iv)
Electricity
(e) Manufacturing overhead costs, SG&A and profits
(f) Calculation of the normal value
3.2.1.2.
Export price
3.2.1.3.
Comparison and dumping margin
3.2.1.4.
Conclusion
3.2.2.
Russia
3.2.2.1.
Normal value
3.2.2.2.
Export price
3.2.2.3.
Comparison and dumping margin
3.2.2.4.
Conclusion
3.3.
Likelihood of continuation or recurrence of dumping should measures be repealed
3.3.1.
PRC
3.3.1.1.
Production capacity and spare capacity in the PRC
3.3.1.2.
Availability of other markets
3.3.1.3.
Attractiveness of the Union market
3.3.1.4.
Conclusion on the likelihood of continuation or recurrence of dumping
3.3.2.
Russia
3.3.2.1.
Production capacity and spare capacity in Russia
3.3.2.2.
Availability of other markets
3.3.2.3.
Attractiveness of the Union market
3.3.3.
Conclusion on the likelihood of continuation or recurrence of dumping
3.4.
Overall conclusions 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
|
2015 |
2016 |
2017 |
2018 |
Review Investigation Period |
Total consumption |
752 111 |
578 894 |
700 509 |
776 354 |
740 144 |
Index (2015 = 100) |
100 |
77 |
93 |
103 |
98 |
Source: Eurostat, data submitted by the Union industry and verified questionnaire replies |
4.3.
Imports from the countries concerned
4.3.1.
Cumulative assessment of the effects of the imports from the countries concerned
4.3.2.
Volume and market share of the imports from the countries concerned
|
2015 |
2016 |
2017 |
2018 |
Review Investigation Period |
Volume of import from the PRC |
614 |
305 |
235 |
2 719 |
2 804 |
Index (2015 = 100) |
100 |
50 |
38 |
443 |
457 |
Volume of import from Russia |
6 006 |
318 |
1 409 |
2 653 |
2 722 |
Index (2015 = 100) |
100 |
5 |
23 |
44 |
45 |
Countries concerned |
6 620 |
623 |
1 644 |
5 372 |
5 526 |
Index (2015 = 100) |
100 |
9 |
25 |
81 |
83 |
Source: Eurostat, adjusted to 75 % silicon content (). |
|
2015 |
2016 |
2017 |
2018 |
Review Investigation Period |
PRC |
0,1 % |
0,1 % |
0,0 % |
0,4 % |
0,4 % |
Index (2015 = 100) |
100 |
65 |
41 |
429 |
464 |
Russia |
0,8 % |
0,1 % |
0,2 % |
0,3 % |
0,4 % |
Index (2015 = 100) |
100 |
7 |
25 |
43 |
46 |
Countries concerned |
0,9 % |
0,1 % |
0,2 % |
0,7 % |
0,7 % |
Index (2015 = 100) |
100 |
12 |
27 |
79 |
85 |
Source: Eurostat, data submitted by the Union industry and verified questionnaire replies. |
4.3.3.
Prices of the imports from the countries concerned and price undercutting
|
2015 |
2016 |
2017 |
2018 |
Review Investigation Period |
Import price PRC |
1 319 |
1 317 |
2 086 |
1 109 |
1 234 |
Index (2015 = 100) |
100 |
100 |
158 |
84 |
94 |
Import price Russia |
1 113 |
764 |
770 |
1 175 |
1 211 |
Index (2015 = 100) |
100 |
69 |
69 |
106 |
109 |
Source: Eurostat, adjusted to 75 % silicon content (). |
4.4.
Imports from third countries other than the PRC and Russia
|
2015 |
2016 |
2017 |
2018 |
Review Investigation Period |
Volume of imports from Norway (tonnes) |
204 913 |
144 649 |
127 832 |
208 628 |
205 858 |
Index (2015 = 100) |
100 |
71 |
62 |
102 |
100 |
Market share Norway |
27,2 % |
25,0 % |
18,2 % |
26,9 % |
27,8 % |
Volume of imports from Malaysia (tonnes) |
21 393 |
12 311 |
44 252 |
53 037 |
57 413 |
Index (2015 = 100) |
100 |
58 |
207 |
248 |
268 |
Market share Malaysia |
2,8 % |
2,1 % |
6,3 % |
6,8 % |
7,8 % |
Volume of imports from Egypt (tonnes) |
26 398 |
25 127 |
39 836 |
28 269 |
24 277 |
Index (2015 = 100) |
100 |
95 |
151 |
107 |
92 |
Market share Egypt |
3,5 % |
4,3 % |
5,7 % |
3,6 % |
3,3 % |
Volume of imports from Brazil (tonnes) |
6 772 |
13 813 |
15 129 |
35 731 |
34 974 |
Index (2015 = 100) |
100 |
204 |
223 |
528 |
516 |
Market share Brazil |
0,9 % |
2,4 % |
2,2 % |
4,6 % |
4,7 % |
Volume of imports from other countries (tonnes) |
278 791 |
180 972 |
265 243 |
233 305 |
207 218 |
Index (2015 = 100) |
100 |
65 |
95 |
84 |
74 |
Market share other countries |
37,1 % |
31,3 % |
37,9 % |
30,1 % |
28,0 % |
Total market share of third countries in the Union (excluding the PRC and Russia) |
71,6 % |
65,1 % |
70,3 % |
72,0 % |
71,6 % |
Index (2015 = 100) |
100 |
91 |
98 |
101 |
100 |
Source: Eurostat, corrected to 75 % silicon content. |
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
|
2015 |
2016 |
2017 |
2018 |
Review Investigation Period |
Production (tonnes) |
234 694 |
212 803 |
231 614 |
234 691 |
241 609 |
Index (2015 = 100) |
100 |
91 |
99 |
100 |
103 |
Source: Data submitted by the Union industry and verified questionnaire replies. |
|
2015 |
2016 |
2017 |
2018 |
Review Investigation Period |
Capacity (tonnes) |
300 050 |
286 050 |
296 508 |
301 918 |
303 329 |
Index (2015 = 100) |
100 |
95 |
99 |
101 |
101 |
Source: Data submitted by the Union industry and verified questionnaire replies. |
|
2015 |
2016 |
2017 |
2018 |
Review Investigation Period |
Capacity utilisation (%) |
78 % |
74 % |
78 % |
78 % |
80 % |
Index (2015 = 100) |
100 |
95 |
100 |
99 |
102 |
Source: Data submitted by the Union industry and verified questionnaire replies. |
4.5.2.2.
Sales volume and market share
|
2015 |
2016 |
2017 |
2018 |
Review Investigation Period |
Union sales volume |
207 224 |
201 399 |
206 574 |
212 012 |
204 878 |
Index (2015 = 100) |
100 |
97 |
100 |
102 |
99 |
Source: Data submitted by the Union industry and verified questionnaire replies. |
|
2015 |
2016 |
2017 |
2018 |
Review Investigation Period |
Market share of the Union industry (%) |
27,6 % |
34,8 % |
29,5 % |
27,3 % |
27,7 % |
Index (2015 = 100) |
100 |
126 |
107 |
99 |
100 |
Source: Data submitted by the Union industry and verified questionnaire replies. |
4.5.2.3.
Growth
4.5.2.4.
Employment and productivity
|
2015 |
2016 |
2017 |
2018 |
Review Investigation Period |
Employment in FTE |
842 |
760 |
743 |
738 |
795 |
Index (2015 = 100) |
100 |
90 |
88 |
88 |
94 |
Source: Data submitted by the Union industry and verified questionnaire replies. |
|
2015 |
2016 |
2017 |
2018 |
Review Investigation Period |
Productivity (tonnes/FTE) |
279 |
280 |
312 |
318 |
304 |
Index (2015 = 100) |
100 |
100 |
112 |
114 |
109 |
Source: Data submitted by the Union industry and verified questionnaire replies. |
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
|
2015 |
2016 |
2017 |
2018 |
Review Investigation Period |
Union unit price to unrelated customers (EUR/tonne) |
1 163 |
905 |
1 197 |
1 414 |
1 338 |
Index (2015 = 100) |
100 |
78 |
103 |
122 |
115 |
Union cost of production (EUR/tonne) |
1 042 |
928 |
1 056 |
1 215 |
1 250 |
Index (2015 = 100) |
100 |
89 |
101 |
117 |
120 |
Source: Data submitted by the Union industry and verified questionnaire replies. |
4.5.3.2.
Labour costs
|
2015 |
2016 |
2017 |
2018 |
Review Investigation Period |
Labour costs (EUR/FTE) |
30 078 |
28 043 |
35 183 |
40 753 |
42 269 |
Index (2015 = 100) |
100 |
93 |
117 |
135 |
141 |
Source: Data submitted by the Union industry and verified questionnaire replies. FTE is a full time equivalent. |
4.5.3.3.
Inventories
|
2015 |
2016 |
2017 |
2018 |
Review Investigation Period |
Closing stock (tonnes) |
36 846 |
14 975 |
15 968 |
22 625 |
25 495 |
Index (2015 = 100) |
100 |
41 |
43 |
61 |
69 |
Source: Data submitted by the Union industry and verified questionnaire replies. |
4.5.3.4.
Profitability, cash flow, investments, and return on investments and ability to raise capital
|
2015 |
2016 |
2017 |
2018 |
Review Investigation Period |
Union profitability (% of net sales) |
10,7 % |
-2,2 % |
10,9 % |
13,5 % |
7,4 % |
Index (2015 = 100) |
100 |
-21 |
102 |
126 |
69 |
ROI (profit in% of the net book value of investment) |
93,2 % |
-16,8 % |
59,4 % |
83,3 % |
54,9 % |
Index (2015 = 100) |
100 |
-18 |
64 |
89 |
59 |
Source: Data submitted by the Union industry and verified questionnaire replies. |
|
2015 |
2016 |
2017 |
2018 |
Review Investigation Period |
Cash flow (EUR) |
24 809 939 |
10 679 967 |
27 923 572 |
35 928 315 |
22 945 093 |
Index (2015 = 100) |
100 |
43 |
113 |
145 |
92 |
Source: Data submitted by the Union industry and verified questionnaire replies. |
|
2015 |
2016 |
2017 |
2018 |
Review Investigation Period |
Net investments (EUR) |
10 955 734 |
3 836 877 |
10 911 592 |
6 226 775 |
8 227 422 |
Index (2015 = 100) |
100 |
35 |
100 |
57 |
75 |
Source: Data submitted by the Union industry and verified questionnaire replies. |
4.6.
Conclusion on the situation of the Union industry
5.
LIKELIHOOD OF RECURRENCE OF INJURY
5.1.
Spare production/processing capacity
5.2.
Attractiveness of the Union market
5.3.
Impact of imports from the countries concerned on the situation of the Union industry should the measures be allowed to lapse
5.4.
Conclusion on likelihood of recurrence of material injury
6.
UNION INTEREST
6.1.
Interest of the Union industry
6.2.
Interest of users
6.3.
Interest of importers
6.4.
Conclusion on Union interest
7.
ANTI-DUMPING MEASURES
Article 1
Country |
Company |
Definitive duty |
TARIC Additional Code |
The People’s Republic of China |
Erdos Xijin Kuangye Co. Ltd, Qipanjing Industry Park |
15,6 % |
A829 |
Lanzhou Good Land Ferroalloy Factory Co., Ltd, Xicha Villa |
29,0 % |
A830 |
|
All other companies |
31,2 % |
A999 |
|
Russian Federation |
Bratsk Ferroalloy Plant, Bratsk |
17,8 % |
A835 |
All other companies |
22,7 % |
A999 |