COMMISSION IMPLEMENTING REGULATION (EU) 2019/576
of 10 April 2019
imposing a provisional anti-dumping duty on imports of mixtures of urea and ammonium nitrate originating in Russia, Trinidad and Tobago and the United States of America
1.
PROCEDURE
1.1.
Initiation
1.2.
Registration
1.3.
Interested parties
1.4.
Sampling
1.4.1.
Sampling of the Union producers
1.4.2.
Sampling of importers
1.4.3.
Sampling of exporting producers in Russia, TT and US
1.5.
Replies to the questionnaire
1.6.
Verification visits
1.7.
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.
Russia
3.1.1.
Exporting producers
3.1.2.
Normal value
3.1.3.
Export price
3.1.4.
Comparison
3.1.5.
Dumping margins
Company |
Provisional dumping margin |
Acron Group |
31,9 % |
Eurochem Group |
34,0 % |
All other companies |
34,0 % |
3.2.
Trinidad and Tobago
3.2.1.
Normal value
3.2.2.
Export price
3.2.3.
Comparison
3.2.4.
Dumping margin
Company |
Provisional dumping margin |
Methanol Holdings (Trinidad) Limited |
55,9 % |
All other companies |
55,9 % |
3.3.
United States of America
3.3.1.
Normal value
3.3.2.
Export price
3.3.3.
Comparison
3.3.4.
Dumping margin
Company |
Provisional dumping margin |
CF Industries Holdings, Inc. |
37,3 % |
All other companies |
37,3 % |
4.
INJURY
4.1.
Definition of the Union industry and Union production
4.2.
Union consumption
|
2015 |
2016 |
2017 |
IP |
Total Union consumption |
4 803 732 |
4 658 736 |
4 783 671 |
4 571 721 |
Index |
100 |
97 |
100 |
95 |
Source: Fertilizers Europe and Eurostat |
4.3.
Imports from the countries concerned
4.3.1.
Cumulative assessment of the effects of imports from the countries concerned
4.3.2.
Volume and market share of the imports from the countries concerned
|
2015 |
2016 |
2017 |
IP |
Volume of imports from the countries concerned (tonnes) |
1 051 602 |
1 581 863 |
1 647 295 |
1 723 839 |
Index |
100 |
150 |
157 |
164 |
Market share |
21,9 % |
34,0 % |
34,4 % |
37,7 % |
Index |
100 |
155 |
157 |
172 |
Volume of imports from the Russian Federation (tonnes) |
339 075 |
582 906 |
557 966 |
613 491 |
Index |
100 |
172 |
165 |
181 |
Market share |
7,1 % |
12,5 % |
11,7 % |
13,4 % |
Index |
100 |
177 |
165 |
190 |
Volume of imports from Trinidad and Tobago (tonnes) |
488 392 |
452 194 |
444 290 |
368 178 |
Index |
100 |
93 |
91 |
75 |
Market share |
10,2 % |
9,7 % |
9,3 % |
8,1 % |
Index |
100 |
95 |
91 |
79 |
Volume of imports from the US (tonnes) |
224 136 |
546 763 |
645 040 |
742 170 |
Index |
100 |
244 |
288 |
331 |
Market share |
4,7 % |
11,7 % |
13,5 % |
16,2 % |
Index |
100 |
252 |
289 |
348 |
Source: Eurostat |
4.3.3.
Prices of the imports from the countries concerned and price undercutting
|
2015 |
2016 |
2017 |
IP |
Russian Federation |
179 |
130 |
135 |
126 |
Index |
100 |
73 |
75 |
70 |
Trinidad and Tobago |
197 |
151 |
141 |
140 |
Index |
100 |
77 |
72 |
71 |
US |
188 |
137 |
126 |
124 |
Index |
100 |
73 |
67 |
66 |
Countries Concerned |
189 |
138 |
133 |
128 |
Index |
100 |
73 |
70 |
68 |
Source: Eurostat |
4.4.
Economic situation of the Union industry
4.4.1.
General remarks
4.4.2.
Macroeconomic indicators
4.4.2.1. Production, production capacity and capacity utilisation
|
2015 |
2016 |
2017 |
IP |
Production volume (tonne) |
4 238 411 |
3 695 546 |
4 253 903 |
3 890 476 |
Index |
100 |
87 |
100 |
92 |
Production capacity (measuring unit) |
8 055 000 |
8 205 000 |
8 385 000 |
8 385 000 |
Index |
100 |
102 |
104 |
104 |
Capacity utilisation |
53 % |
45 % |
51 % |
46 % |
Index |
100 |
86 |
96 |
88 |
Source: verified questionnaire reply of Fertilizers Europe |
4.4.2.2. Sales volume and market share
|
2015 |
2016 |
2017 |
IP |
Sales volume on the Union market (tonnes) |
3 348 196 |
2 796 506 |
2 934 634 |
2 645 143 |
Index |
100 |
84 |
88 |
79 |
Market share |
69,7 % |
60,0 % |
61,3 % |
57,9 % |
Index |
100 |
86 |
88 |
83 |
Source: verified questionnaire reply of Fertilizers Europe |
4.4.2.3. Growth
4.4.2.4. Employment and productivity
|
2015 |
2016 |
2017 |
IP |
Number of employees |
2 164 |
2 029 |
2 104 |
2 005 |
Index |
100 |
94 |
97 |
93 |
Productivity (tonne/employee) |
1 959 |
1 821 |
2 022 |
1 940 |
Index |
100 |
93 |
103 |
99 |
Source: verified questionnaire reply of Fertilizers Europe |
4.4.2.5. Magnitude of the dumping margin
4.4.3.
Microeconomic indicators
4.4.3.1. Prices and factors affecting prices
|
2015 |
2016 |
2017 |
IP |
Average unit EXW sales price in the Union to unrelated customers (EUR/ tonne) |
176 |
130 |
127 |
127 |
Index |
100 |
74 |
72 |
72 |
Unit cost of production EXW (EUR/ tonne) |
146 |
115 |
123 |
130 |
Index |
100 |
79 |
84 |
89 |
Source: verified questionnaire replies of the sample of Union producers |
4.4.3.2. Labour costs
|
2015 |
2016 |
2017 |
IP |
Average labour costs per employee (EUR) |
24 876 |
24 323 |
27 143 |
27 410 |
Index |
100 |
98 |
109 |
110 |
Source: verified questionnaire replies of the sample of Union producers |
4.4.3.3. Inventories
|
2015 |
2016 |
2017 |
IP |
Closing stocks (tonnes) |
83 826 |
54 411 |
72 814 |
38 961 |
Index |
100 |
65 |
87 |
46 |
Closing stocks as a percentage of production |
3,7 % |
2,7 % |
3,2 % |
1,8 % |
Index |
100 |
71 |
85 |
49 |
Source: verified questionnaire replies of the sample of Union producers |
4.4.3.4. Profitability, cash flow, investments, return on investments and ability to raise capital
|
2015 |
2016 |
2017 |
IP |
Profitability of sales in the Union to unrelated customers (% of sales turnover) |
14,0 % |
10,0 % |
1,1 % |
– 3,5 % |
Index |
100 |
71 |
8 |
– 25 |
Cash flow (EUR) |
78 775 697 |
39 007 376 |
19 727 317 |
5 827 513 |
Index |
100 |
50 |
25 |
7 |
Investments (EUR) |
18 082 767 |
15 044 306 |
5 110 610 |
8 593 605 |
Index |
100 |
83 |
28 |
48 |
Return on investments |
57,2 % |
28,3 % |
7,9 % |
– 8,7 % |
Index |
100 |
49 |
14 |
– 15 |
Source: Verified questionnaire replies of the sample of Union producers |
4.4.4.
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
|
|
2015 |
2016 |
2017 |
IP |
Total of third countries except the countries concerned |
Volume (tonne) |
403 934 |
280 367 |
201 741 |
202 738 |
Index |
100 |
69 |
50 |
50 |
|
Market share |
8,0 % |
5,7 % |
3,8 % |
4,1 % |
|
Index |
100 |
72 |
48 |
51 |
|
Average price |
189 |
140 |
136 |
129 |
|
Index |
100 |
74 |
72 |
68 |
|
Source: Comext |
5.2.2.
Export performance of the Union industry
|
2015 |
2016 |
2017 |
IP |
Export volume (tonne) |
272 077 |
306 840 |
559 840 |
552 979 |
Index |
100 |
113 |
206 |
203 |
Average price (EUR/tonne) |
171 |
124 |
122 |
125 |
Index |
100 |
72 |
72 |
73 |
Source: Fertilizers Europe and sampled producers |
5.2.3.
Consumption
5.2.4.
The (world) price of urea
5.2.5.
Higher costs within Union producers
5.2.6.
Certain UAN purchased and sold by Union producers
5.2.7.
Other factors
5.3.
Conclusion on causation
6.
LEVEL OF MEASURES
6.1.
Examination of the margin adequate to remove the injury to the Union industry for Trinidad and Tobago and the United States of America
Country |
Company |
Dumping margin (%) |
Underselling margin (%) |
Trinidad and Tobago |
Methanol Holdings (Trinidad) Limited |
55,9 |
16,3 |
Trinidad and Tobago |
All other companies |
55,9 |
16,3 |
United States of America |
CF Industries Holdings, Inc. |
37,3 |
22,6 |
United States of America |
All other companies |
37,3 |
22,6 |
6.2.
Examination of the margin adequate to remove the injury to the Union industry for Russia
6.2.1.
Comparison between dumping margin and underselling margin
Country |
Company |
Dumping margin (%) |
Underselling margin (%) |
Russia |
PJSC Acron |
31,9 |
12,5 |
Russia |
Novomoskovsky Azot JSC |
34,0 |
15,8 |
Russia |
Nevinnomyssky Azot JSC |
34,0 |
15,8 |
Russia |
All other companies |
34,0 |
13,6 |
6.3.
Raw material distortions
6.4.
Union interest under Article 7(2b) of the basic Regulation
6.4.1.
Spare capacities in the exporting country
6.4.2.
Competition for raw materials
6.4.3.
Effect on supply chains for Union companies
6.4.4.
Conclusion
7.
UNION INTEREST
7.1.
Interest of the Union industry
7.2.
Interest of unrelated importers
7.3.
Interest of users
7.4.
Other factors
7.5.
Conclusion on Union interest
8.
PROVISIONAL ANTI-DUMPING MEASURES
Country |
Company |
Dumping margin (%) |
Injury margin (%) |
Provisional anti-dumping duty |
Russia |
PJSC Acron |
31,9 |
31,9 |
31,9 |
Russia |
Novomoskovsky Azot JSC |
34,0 |
34,0 |
34,0 |
Russia |
Nevinnomyssky Azot JSC |
34,0 |
34,0 |
34,0 |
Russia |
All other companies |
34,0 |
34,0 |
34,0 |
Trinidad and Tobago |
Methanol Holdings (Trinidad) Limited |
55,9 |
16,3 |
16,3 |
Trinidad and Tobago |
All other companies |
55,9 |
16,3 |
16,3 |
United States of America |
CF Industries Holdings, Inc. |
37,3 |
22,6 |
22,6 |
United States of America |
All other companies |
37,3 |
22,6 |
22,6 |
9.
REGISTRATION
10.
INFORMATION AT PROVISIONAL STAGE
11.
FINAL PROVISIONS
Article 1
Country |
Company |
Provisional anti-dumping duty (%) |
TARIC additional code |
Russia |
PJSC Acron |
31,9 |
C500 |
Russia |
Novomoskovsky Azot JSC |
34,0 |
C501 |
Russia |
Nevinnomyssky Azot JSC |
34,0 |
C504 |
Russia |
All other companies |
34,0 |
C999 |
Trinidad and Tobago |
Methanol Holdings (Trinidad) Limited |
16,3 |
C502 |
Trinidad and Tobago |
All other companies |
16,3 |
C999 |
United States of America |
CF Industries Holdings, Inc. |
22,6 |
C503 |
United States of America |
All other companies |
22,6 |
C999 |