COMMISSION IMPLEMENTING REGULATION (EU) 2023/2659
of 27 November 2023
imposing a provisional anti-dumping duty on imports of certain polyethylene terephthalate originating in People’s Republic of China
1.
PROCEDURE
1.1.
Initiation
1.2.
Registration of imports
|
Investigation period |
Investigation period monthly average |
April – July 2023 |
April – July 2023 monthly average |
||
Imports from the PRC to the Union |
305 055 |
25 421 |
100 657 |
25 164 |
||
|
1.3.
Interested parties
1.4.
Comments on initiation
1.5.
Sampling
1.5.1.
Sampling of Union producers
1.5.2.
Sampling of importers
1.5.3.
Sampling of exporting producers the PRC
1.6.
Individual examination
1.7.
Questionnaire replies and verification visits
1.8.
Investigation period and period considered
2.
PRODUCT UNDER INVESTIGATION, PRODUCT CONCERNED AND LIKE PRODUCT
2.1.
Product under investigation
2.2.
Product concerned
2.3.
Like product
2.4.
Claims regarding product scope
3.
DUMPING
3.1.
Procedure for the determination of the normal value under Article 2(6a) of the basic Regulation
3.2.
Normal value
3.2.1.
Existence of significant distortions
3.2.1.1. Introduction
3.2.1.2. Significant distortions affecting the domestic prices and costs in the PRC
3.2.1.3. 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
3.2.1.4. 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
3.2.1.5. 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
3.2.1.6. 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
3.2.1.7. Significant distortions according to Article 2(6a)(b), fifth indent of the basic Regulation: wage costs being distorted
3.2.1.8. 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
3.2.1.9. Systemic nature of the distortions described
3.2.1.10. Conclusion
3.2.2.
Representative country
3.2.2.1. General remarks
3.2.2.2. A level of economic development similar to the PRC
3.2.2.3. Availability of relevant public data in the representative country
3.2.2.4. Conclusion
3.2.3. Sources used to establish undistorted costs
3.2.4.
Undistorted costs and benchmarks
3.2.4.1. Factors of production
Factor of Production |
Malaysian Commodity Code |
Source of data |
Value (CNY) |
Unit of measurement |
Raw Materials |
||||
Purified terephthalic acid (PTA) |
2917_36_00 |
Global Trade Atlas (GTA)(64) |
5,81 |
kg |
Mono-ethylene glycol (MEG) |
2905_31_00 |
GTA |
5,74 |
kg |
Isophthalic acid (PIA) |
2917_39_20 |
GTA |
10,28 |
kg |
Para-xylene (PX) |
2902_43_00 |
GTA |
7,50 |
kg |
Labour |
||||
Labour |
[N/A] |
Department of Statistics of the Ministry of Economy of the Government of Malaysia(65) |
39,64 |
Labour Hour |
Energy |
||||
Electricity |
[N/A] |
Tenaga Nasional Berhad (TNB)(66) |
[0,50 -0,60 ] |
kWh |
Natural Gas |
[N/A] |
Suruhanjaya Tenaga(67) |
1,64 |
m3 |
3.2.4.2. Raw materials
3.2.4.3. Labour
3.2.4.4. Electricity
3.2.4.5. Natural gas
3.2.4.6. Manufacturing overhead costs, SG&A, profit and depreciation
3.2.4.7. Calculation
3.3.
Export price
3.4.
Comparison
3.5.
Dumping margins
Company |
Provisional weighted average dumping margin |
||||||||
Sanfame Group:
|
16,0 % |
||||||||
China Resources Chemical Innovative Materials Group:
|
17,2 % |
||||||||
Wankai New Materials Group:
|
22,6 % |
Company |
Provisional dumping margin |
||||||||
Sanfame Group:
|
16,0 % |
||||||||
China Resources Chemical Innovative Materials Group:
|
17,2 % |
||||||||
Wankai Group
|
22,6 % |
||||||||
Other cooperating companies |
19,7 % |
||||||||
All other companies |
24,2 % |
4.
INJURY
4.1.
Definition of the Union industry and Union production
4.2.
Union consumption
|
2019 |
2020 |
2021 |
Investigation period |
||
Total Union consumption |
3 765 652 |
3 815 572 |
3 629 938 |
3 893 890 |
||
Index |
100 |
101 |
96 |
103 |
||
|
4.3.
Imports from the country concerned
4.3.1.
Volume and market share of the imports from the country concerned
|
2019 |
2020 |
2021 |
Investigation period |
||
Volume of imports from the PRC (tonnes) |
192 941 |
88 041 |
102 865 |
305 055 |
||
Index |
100 |
46 |
53 |
158 |
||
Market share |
5,1 % |
2,3 % |
2,8 % |
7,8 % |
||
Index |
100 |
45 |
55 |
153 |
||
|
|
2019 |
2020 |
2021 |
Investigation period |
||
Volume of UI imports from the PRC (tonnes) |
[0 – 3 000 ] |
[4 000 – 6 000 ] |
[7 000 – 9 000 ] |
[50 000 – 70 000 ] |
||
Market share of Chinese imports without UI imports |
[5,0 – 5,5 %] |
[2,0 – 2,5 %] |
[2,5 – 3,0 %] |
[6,0 – 6,5 %] |
||
|
4.3.2.
Prices of the imports from the country concerned and price undercutting
|
2019 |
2020 |
2021 |
Investigation period |
||
Price of imports from the PRC |
1 013 |
778 |
884 |
1 276 |
||
Index |
100 |
77 |
87 |
126 |
||
|
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
|
2019 |
2020 |
2021 |
Investigation period |
||
Production volume (tonnes) |
3 173 696 |
3 321 519 |
3 365 795 |
3 248 786 |
||
Index |
100 |
105 |
106 |
102 |
||
Production capacity (tonnes) |
3 718 259 |
3 880 522 |
3 956 555 |
4 043 716 |
||
Index |
100 |
104 |
106 |
109 |
||
Capacity utilisation |
85 % |
86 % |
85 % |
80 % |
||
Index |
100 |
100 |
100 |
94 |
||
|
4.4.2.2. Sales volume and market share
|
2019 |
2020 |
2021 |
Investigation period |
||
Sales volume on the Union market (tonnes) |
2 768 907 |
2 951 147 |
2 850 509 |
2 755 783 |
||
Index |
100 |
107 |
103 |
100 |
||
Market share |
73,5 % |
77,3 % |
78,5 % |
70,8 % |
||
Index |
100 |
105 |
107 |
96 |
||
|
4.4.2.3. Growth
4.4.2.4. Employment and productivity
|
2019 |
2020 |
2021 |
Investigation period |
||
Number of employees |
1 365 |
1 410 |
1 453 |
1 529 |
||
Index |
100 |
103 |
106 |
112 |
||
Productivity (tonne/FTE) |
2 325 |
2 356 |
2 317 |
2 125 |
||
Index |
100 |
101 |
100 |
91 |
||
|
4.4.2.5. Magnitude of the dumping margin and recovery from past dumping
4.4.3.
Microeconomic indicators
4.4.3.1. Prices and factors affecting prices
|
2019 |
2020 |
2021 |
Investigation period |
||
Average unit sales price in the Union on the total market (EUR/ tonne) |
972 |
716 |
956 |
1 444 |
||
Index |
100 |
74 |
98 |
149 |
||
Unit cost of production (EUR/ tonne) |
930 |
721 |
916 |
1 353 |
||
Index |
100 |
78 |
98 |
146 |
||
|
4.4.3.2. Labour costs
|
2019 |
2020 |
2021 |
Investigation period |
||
Average labour costs per employee (EUR) |
57 253 |
61 824 |
64 372 |
67 727 |
||
Index |
100 |
108 |
112 |
118 |
||
|
4.4.3.3. Inventories
|
2019 |
2020 |
2021 |
Investigation period |
||
Closing stocks (tonnes) |
67 824 |
51 189 |
58 133 |
83 236 |
||
Index |
100 |
75 |
86 |
123 |
||
Closing stocks as a percentage of production |
6,09 % |
4,67 % |
5,12 % |
8,05 % |
||
Index |
100 |
77 |
84 |
132 |
||
|
4.4.3.4. Profitability, cash flow, investments, return on investments and ability to raise capital
|
2019 |
2020 |
2021 |
Investigation period |
||
Profitability of sales in the Union to unrelated customers (% of sales turnover) |
4 % |
1 % |
8 % |
7 % |
||
Index |
100 |
20 |
208 |
193 |
||
Cash flow (EUR) |
63 713 072 |
57 496 364 |
96 321 869 |
91 341 517 |
||
Index |
100 |
90 |
151 |
143 |
||
Investments (EUR) |
2 667 066 |
8 305 772 |
15 937 339 |
14 756 777 |
||
Index |
100 |
311 |
598 |
553 |
||
Return on investments |
18 % |
6 % |
41 % |
48 % |
||
Index |
100 |
32 |
225 |
266 |
||
|
4.4.3.5. Developments in the investigation period and post-IP
|
Union consumption (tonnes) |
Union production (tonnes) |
Union sales volume (tonnes) |
Union industry market share (%) |
Profitability (%) |
Chinese imports (tonnes) |
Chinese import prices including common customs duty of 6,5 % (EUR) |
||
Q1 2022 |
1 005 290 |
918 123 |
744 321 |
74 % |
15 % |
54 765 (including [0 – 4 000 ] tonnes of UI imports) |
1 212 |
||
Q2 2022 |
1 075 432 |
886 642 |
773 099 |
72 % |
12 % |
84 906 (including [20 000 – 25 000 ] tonnes of UI imports) |
1 306 |
||
Q3 2022 |
979 842 |
814 673 |
656 453 |
67 % |
13 % |
112 658 (including [20 000 – 25 000 ] tonnes of UI imports) |
1 426 |
||
Q4 2022 |
833 326 |
629 348 |
581 910 |
70 % |
-12 % |
52 726 (including [13 000 – 18 000 ] tonnes of UI imports) |
1 455 |
||
Q1 2023 |
1 036 561 |
685 594 |
654 045 |
63 % |
-11 % |
134 604 (including [20 000 – 25 000 tonnes of UI imports) |
1 146 |
||
|
4.4.4.
Conclusion on injury
5.
THREAT OF INJURY
5.1.
Introduction
5.2.
Significant rate of increase of dumped imports into the Union market indicating the likelihood of substantially increased imports
5.3.
Sufficient freely disposable capacity
5.4.
Price level of imports
Average import price of Chinese imports (euro/tonne) |
January 2023 |
February 2023 |
March 2023 |
April 2023 |
May 2023 |
June 2023 |
||
|
1 158 |
1 067 |
1 030 |
1 011 |
993 |
1 006 |
||
|
5.5.
Level of inventories
5.6.
Other elements: profitability and other economic indicators
5.7.
Foreseeability and imminence of the change in circumstances
5.8.
Conclusion on threat of injury
6.
CAUSATION
6.1.
Effects of the dumped imports
6.2.
Effects of other factors
6.2.1.
Imports by the complainants and related companies to the complainants
6.2.2.
The increased use of recycled PET by PET users
6.2.3.
Imports from third countries
Country |
|
2019 |
2020 |
2021 |
Investigation period |
||
Egypt |
Volume (tonnes) |
87 688 |
81 942 |
70 786 |
172 913 |
||
|
Index |
100 |
93 |
81 |
197 |
||
|
Market share |
2 % |
2 % |
2 % |
4 % |
||
|
Average price |
997 |
794 |
1 020 |
1 474 |
||
|
Index |
100 |
80 |
102 |
148 |
||
Türkiye |
Volume (tonnes) |
103 246 |
124 883 |
160 162 |
172 516 |
||
|
Index |
100 |
121 |
155 |
167 |
||
|
Market share |
3 % |
3 % |
4 % |
4 % |
||
|
Average price |
1 033 |
787 |
940 |
1 443 |
||
|
Index |
100 |
76 |
91 |
140 |
||
Vietnam |
Volume (tonnes) |
77 961 |
92 359 |
91 709 |
156 003 |
||
|
Index |
100 |
118 |
118 |
200 |
||
|
Market share |
2 % |
2 % |
3 % |
4 % |
||
|
Average price |
1 008 |
732 |
940 |
1 426 |
||
|
Index |
100 |
73 |
93 |
141 |
||
Other third countries |
Volume (tonnes) |
534 910 |
477 200 |
353 908 |
331 621 |
||
|
Index |
100 |
89 |
66 |
62 |
||
|
Market share |
14 % |
13 % |
10 % |
9 % |
||
|
Average price |
998 |
756 |
925 |
1 458 |
||
|
Index |
100 |
76 |
93 |
146 |
||
Total of all third countries except the country concerned |
Volume (tonnes) |
803 805 |
776 385 |
676 564 |
833 052 |
||
|
Index |
100 |
97 |
84 |
104 |
||
|
Market share |
21 % |
20 % |
19 % |
21 % |
||
|
Average price |
1 003 |
762 |
940 |
1 451 |
||
|
Index |
100 |
76 |
94 |
145 |
||
|
6.2.4.
Export performance of the Union industry
|
2019 |
2020 |
2021 |
Investigation period |
||
Export volume (tonnes) |
228 466 |
260 053 |
333 941 |
291 338 |
||
Index |
100 |
114 |
146 |
128 |
||
Average price (EUR) |
1 006 |
741 |
992 |
1 469 |
||
Index |
100 |
74 |
99 |
146 |
||
|
6.2.5.
Cost increases in raw materials and energy prices
6.2.6.
Increase in investment costs
6.2.7.
Customer purchasing preferences
6.2.8.
Conclusion on causation
7.
LEVEL OF MEASURES
7.1.
Injury margin
Company |
Dumping margin |
Injury margin |
||||||||
Sanfame Group:
|
16,0 % |
6,6 % |
||||||||
Wankai New Materials Group:
|
22,6 % |
10,7 % |
||||||||
China Resources Chemical Innovative Materials Group:
|
17,2 % |
21,2 % |
||||||||
Other cooperating companies |
19,7 % |
11,1 % |
||||||||
All other companies |
24,2 % |
27,5 % |
7.2.
Conclusion on the level of measures
Company |
Provisional anti-dumping duty |
||||||||
Sanfame Group:
|
6,6 % |
||||||||
Wankai New Materials Group:
|
10,7 % |
||||||||
China Resources Chemical Innovative Materials Group:
|
17,2 % |
||||||||
Other cooperating companies |
11,1 % |
||||||||
All other companies |
24,2 % |
8.
UNION INTEREST
8.1.
Interest of the Union industry
8.2.
Interest of users and unrelated importers
8.2.1.
Increased vPET Prices
8.2.2.
Slower transition to rPET
8.2.3.
Concerns over market dominance
8.2.4.
Analysis of the impact of the measures on users and unrelated importers
8.3.
EU’s Ambition Towards Sustainable Plastics
8.4.
Challenges with regard to rPET
8.5
Conclusion on Union interest
9.
PROVISIONAL ANTI-DUMPING MEASURES
Company |
Provisional anti-dumping duty |
||||||||
Sanfame Group:
|
6,6 % |
||||||||
Wankai New Materials Group:
|
10,7 % |
||||||||
China Resources Chemical Innovative Materials Group:
|
17,2 % |
||||||||
Other cooperating companies |
11,1 % |
||||||||
All other companies |
24,2 % |
10.
INFORMATION AT PROVISIONAL STAGE
11.
FINAL PROVISIONS
Article 1
Company |
Provisional anti-dumping duty |
TARIC additional code |
||||||||
Sanfame Group:
|
6,6 % |
899V |
||||||||
Wankai New Materials Group:
|
10,7 % |
899W |
||||||||
China Resources Chemical Innovative Materials Group:
|
17,2 % |
899X |
||||||||
Other cooperating companies |
11,1 % |
See annex |
||||||||
All other companies |
24,2 % |
8999 |
Article 2
Article 3
ANNEX
COOPERATING EXPORTING PRODUCERS NOT SAMPLED
Country |
Name |
TARIC additional code |
People’s Republic of China |
Sinopec Yizheng Chemical Fibre Limited Liability Company |
899Y |
People’s Republic of China |
Dragon Special Resin (XIAMEN) Co., Ltd. |
899Z |
People’s Republic of China |
Far Eastern Industries (Shanghai) Ltd. |
89AA |
People’s Republic of China |
Jiangsu Ceville New Materials Technology Co., Ltd. |
89AB |