COMMISSION IMPLEMENTING REGULATION (EU) 2023/2120
of 12 October 2023
imposing a provisional anti-dumping duty on imports of electrolytic manganese dioxides originating in the People’s Republic of China
1.
PROCEDURE
1.1.
Initiation
1.2.
Registration
|
Investigation period monthly average |
March–August 2022 monthly average |
March–August 2023 monthly average |
||
Imports from China to the EU |
1 048 558 |
1 082 617 |
351 404 |
||
|
1.3.
Raw material distortions
1.4.
Interested parties
1.5.
Sampling
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
2.5.
Request to extend the product scope of the investigation
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 China and production of the product under investigation
3.2.2.3.
Availability of relevant public data in the representative country
3.2.2.4.
Comments of the parties
3.2.2.5.
Level of social and environmental protection
3.2.2.6.
Conclusion
3.2.3.
Sources used to establish undistorted costs
3.2.4.
Undistorted costs and benchmarks
Factor of Production |
Commodity Code |
Undistorted value |
Source of the data |
Raw materials |
|||
Manganese ore(77) |
2602 00 |
36,63 RMB/DMTU (dry metric tonne unit, expressed as value per % of manganese content) |
Fastmarkets.com |
Pyrite |
2601 11 |
802 RMB/tonne |
GTA imports for Türkiye |
Anthracite coal |
2701 11 |
1 923 RMB/tonne |
GTA imports for Brazil |
Bituminous coal |
2701 12 |
2 225 RMB/tonne |
GTA imports for Brazil |
Lignite coal Brown coal |
2702 10 |
1 005 RMB/tonne |
GTA imports for Türkiye |
Sulfuric acid(78) |
2807 00 00 00 19 |
812 RMB/tonne |
GTA imports for Türkiye |
Consumables |
|||
Labour |
|||
Labour wages in manufacturing sector |
N/A |
29,51 RMB/h |
Colombian Statistical Office/ILO |
Energy |
|||
Electricity |
N/A |
0,92 RMB/KWh |
EMPRESAS MUNICIPALES DE CALI EICE E.S.P |
Water |
N/A |
6,05 RMB/tonne |
Acueducto de Bogota |
3.2.4.1.
Manganese ore
3.2.4.2.
Other raw materials and consumables
3.2.5.
Labour
3.2.6.
Electricity
3.2.7.
Water
3.2.8.
Manufacturing overhead costs, SG&A and profits
3.2.9.
Calculation of the normal value
3.3.
Export price
3.4.
Comparison
3.5.
Dumping margins
Company |
Provisional dumping margin |
Xiangtan |
46,1 % |
Guiliu |
54,2 % |
Daxin |
18,3 % |
Company |
Provisional dumping margin |
Xiangtan |
46,1 % |
Guiliu |
54,2 % |
Daxin |
18,3 % |
Other cooperating companies |
44,5 % |
All other companies |
102,2 % |
4.
INJURY
4.1.
Definition of the Union industry and Union production
4.2.
Union consumption
|
2019 |
2020 |
2021 |
Investigation period |
||
Total Union consumption |
[38 000 000 – 40 000 000 ] |
[37 000 000 – 39 000 000 ] |
[39 000 000 – 41 000 000 ] |
[36 000 000 – 38 000 000 ] |
||
Index |
100 |
96 |
102 |
94 |
||
|
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 country concerned (kg) |
6 640 500 |
5 437 300 |
10 260 000 |
12 582 700 |
||
Index |
100 |
82 |
155 |
189 |
||
Market share |
[12 –19 ] % |
[10 –17 ] % |
[20 –30 ] % |
[30 –40 ] % |
||
Index |
100 |
85 |
152 |
201 |
||
|
4.3.2.
Prices of the imports from the country concerned, price undercutting and price suppression
|
2019 |
2020 |
2021 |
Investigation period |
||
The People’s Republic of China |
1,61 |
1,54 |
1,53 |
2,37 |
||
Index |
100 |
96 |
95 |
147 |
||
|
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 (kg) |
[29 000 000 – 31 000 000 ] |
[29 000 000 – 31 000 000 ] |
[30 000 000 – 32 000 000 ] |
[25 000 000 – 27 000 000 ] |
||
Index |
100 |
101 |
103 |
87 |
||
Production capacity (kg) |
[34 000 000 – 36 000 000 ] |
[34 000 000 – 36 000 000 ] |
[34 000 000 – 36 000 000 ] |
[34 000 000 – 36 000 000 ] |
||
Index |
100 |
100 |
100 |
100 |
||
Capacity utilisation |
[85 –90 ] % |
[86 –91 ] % |
[90 –95 ] % |
[75 –80 ] % |
||
Index |
100 |
101 |
103 |
87 |
||
|
4.4.2.2.
Sales volume and market share
|
2019 |
2020 |
2021 |
Investigation period |
||
Sales volume on the Union market (kg) |
[29 000 000 – 31 000 000 ] |
[29 000 000 – 31 000 000 ] |
[27 000 000 – 29 000 000 ] |
[22 000 000 – 24 000 000 ] |
||
Index |
100 |
100 |
91 |
73 |
||
Market share |
[75 –82 ] % |
[77 –85 ] % |
[65 –75 ] % |
[55 –65 ] % |
||
Index |
100 |
104 |
89 |
78 |
||
|
4.4.2.3.
Growth
4.4.2.4.
Employment and productivity
|
2019 |
2020 |
2021 |
Investigation period |
||
Number of employees |
[120 –135 ] |
[120 –135 ] |
[130 –140 ] |
[130 –142 ] |
||
Index |
100 |
100 |
104 |
108 |
||
Productivity (kg/employee) |
[225 000 – 250 000 ] |
[225 000 – 250 000 ] |
[225 000 – 250 000 ] |
[175 000 – 200 000 ] |
||
Index |
100 |
101 |
99 |
80 |
||
|
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/kg) |
[1,70 –1,90 ] |
[1,50 –1,70 ] |
[1,50 –1,70 ] |
[2,40 –2,60 ] |
||
Index |
100 |
90 |
92 |
142 |
||
Unit cost of production (EUR/kg) |
[1,50 –1,70 ] |
[1,40 –1,60 ] |
[1,70 –1,80 ] |
[2,50 –2,70 ] |
||
Index |
100 |
96 |
109 |
164 |
||
|
4.4.3.2.
Labour costs
|
2019 |
2020 |
2021 |
Investigation period |
||
Average labour costs per employee (EUR) |
[45 000 –50 000 ] |
[45 000 –50 000 ] |
[45 000 –50 000 ] |
[50 000 –55 000 ] |
||
Index |
100 |
101 |
98 |
107 |
||
|
4.4.3.3. Inventories
|
2019 |
2020 |
2021 |
Investigation period |
||
Closing stocks (kg) |
[7 000 000 – 7 500 000 ] |
[6 500 000 – 7 000 000 ] |
[6 000 000 – 6 500 000 ] |
[8 500 000 – 9 000 000 ] |
||
Index |
100 |
93 |
82 |
119 |
||
Closing stocks as a percentage of production |
[25 –30 ] % |
[20 –25 ] % |
[15 –20 ] % |
[30 –35 ] % |
||
Index |
100 |
92 |
79 |
137 |
||
|
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) |
[7 –8 ] % |
[6 –7 ] % |
[1 –2 ] % |
[2 –3 ] % |
||
Index |
100 |
84 |
18 |
34 |
||
Cash flow (EUR) |
[–2 000 000 –(–2 500 000 )] |
[5 000 000 – 5 500 000 ] |
[1 500 000 – 2 000 000 ] |
[–6 000 000 – (–6 500 000 )] |
||
Index |
– 100 |
223 |
82 |
– 278 |
||
Investments (EUR) |
[4 000 000 – 4 500 000 ] |
[2 000 000 – 2 500 000 ] |
[1 500 000 – 2 000 000 ] |
[2 000 000 – 2 500 000 ] |
||
Index |
100 |
58 |
44 |
55 |
||
Return on investments |
[6 –7 ] % |
[7 –8 ] % |
[0 –1 ] % |
[3 –4 ] % |
||
Index |
100 |
118 |
1 |
47 |
||
|
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
Country |
|
2019 |
2020 |
2021 |
Investigation period |
||
Colombia |
Volume (kg) |
1 901 200 |
1 625 000 |
1 750 000 |
1 550 000 |
||
|
Index |
100 |
85 |
92 |
82 |
||
|
Market share |
[3 –7 ] % |
[3 –6 ] % |
[3 –6 ] % |
[3 –5 ] % |
||
|
Average price |
2,00 |
1,89 |
1,83 |
2,26 |
||
|
Index |
100 |
94 |
91 |
113 |
||
Other third countries (USA, Japan and India) |
Volume (kg) |
34 993 |
33 320 |
39 310 |
416 768 |
||
|
Index |
100 |
95 |
113 |
1 193 |
||
|
Market share |
[0 –0,5 ] % |
[0 –0,5 ] % |
[0 –0,5 ] % |
[1 –1,5 ] % |
||
|
Average price |
2,41 |
2,42 |
2,26 |
2,57 |
||
|
Index |
100 |
100 |
94 |
106 |
||
Total of all third countries except the country concerned |
Volume (kg) |
1 936 133 |
1 658 320 |
1 789 310 |
1 966 768 |
||
|
Index |
100 |
86 |
93 |
102 |
||
|
Market share |
[4 –8 ] % |
[4 –8 ] % |
[4 –8 ] % |
[4 –8 ] % |
||
|
Average price |
2,01 |
1,90 |
1,84 |
2,33 |
||
|
Index |
100 |
94 |
91 |
116 |
||
|
5.2.2.
Export performance of the Union industry
|
2019 |
2020 |
2021 |
Investigation period |
||
Export volume (kg) |
0 |
[500 000 – 1 000 000 ] |
[4 000 000 – 4 500 000 ] |
[1 000 000 – 1 500 000 ] |
||
Index |
— |
100 |
720 |
192 |
||
Average price (EUR/kg) |
— |
[1,70 –1,90 ] |
[1,50 –1,70 ] |
[2,20 –2,40 ] |
||
Index |
— |
100 |
89 |
123 |
||
|
5.2.3.
Other factors
5.3.
Conclusion on causation
6.
LEVEL OF MEASURES
6.1.
Injury margin
Country |
Company |
Dumping margin |
Injury margin |
The People’s Republic of China |
Xiangtan |
46,1 % |
8,8 % |
Guiliu |
54,2 % |
0 % |
|
Daxin |
18,3 % |
15,8 % |
|
Other cooperating companies |
44,5 % |
10,0 % |
|
All other companies |
102,2 % |
34,6 % |
6.2.
Conclusion on the level of the provisional measures
Country |
Company |
Provisional anti-dumping duty |
People’s Republic of China |
Xiangtan |
8,8 % |
Guiliu |
0 % |
|
Daxin |
15,8 % |
|
Other cooperating companies |
10,0 % |
|
All other companies |
34,6 % |
7.
UNION INTEREST
7.1.
Interest of the Union industry
7.2.
Interest of unrelated importers/traders
7.3.
Interest of users
7.4.
Conclusion on Union interest
8.
PROVISIONAL ANTI-DUMPING MEASURES
Country |
Company |
Provisional anti-dumping duty |
People’s Republic of China |
Xiangtan |
8,8 % |
Guiliu |
0 % |
|
Daxin |
15,8 % |
|
Other cooperating companies |
10,0 % |
|
All other companies |
34,6 % |
9.
INFORMATION AT PROVISIONAL STAGE
10.
FINAL PROVISIONS
Article 1
Country |
Company |
Provisional anti-dumping duty |
TARIC additional code |
People’s Republic of China |
Xiangtan Electrochemical Scientific Ltd Jingxi Xiangtan electrochemical scientific ltd. |
8,8 % |
899N |
|
Guangxi Guiliu New Material Co., Ltd Guangxi Xiatian Manganese Mine Co. LTD |
0 % |
899O |
|
Guangxi Daxin Huiyuan New Energy Technology Co., Ltd |
15,8 % |
899P |
|
Other cooperating companies listed in Annex |
10,0 % |
|
|
All other companies |
34,6 % |
C999 |
Article 2
Article 3
ANNEX
Cooperating exporting producers not sampled
Country |
Name |
TARIC additional code |
People’s Republic of China |
Guizhou Redstar Developing Dalong Manganese Industry Co., Ltd. |
899Q |
Guizhou Manganese Mineral Group Co., Ltd. |
899R |
|
Prince Minerals China Ltd |
899S |
|
Hunan Qingchong New Materials Co., Ltd. |
899T |