COMMISSION IMPLEMENTING REGULATION (EU) 2023/1776
of 14 September 2023
imposing a definitive anti-dumping duty on imports of melamine originating in the People’s Republic of China following an expiry review pursuant to Article 11(2) of Regulation (EU) 2016/1036 of the European Parliament and of the Council
1.
PROCEDURE
1.1.
Previous investigation and measures in force
1.2.
Initiation of an expiry review
1.3.
Review investigation period and period considered
1.4.
Interested parties
1.5.
Claims on initiation
1.6.
Sampling
1.6.1.
Sampling of Union producers
1.6.2.
Sampling of unrelated importers
1.6.3.
Sampling of exporting producers in the PRC
1.7.
Replies to the questionnaire
1.8.
Verification
1.9.
Subsequent procedure
2.
PRODUCT UNDER REVIEW AND LIKE PRODUCT
2.1.
Product under review
2.2.
Product concerned
2.3.
Like product
3.
DUMPING
3.1.
Preliminary remarks
3.2.
Continuation of dumping during the review investigation period
3.2.1.
Procedure for the determination of the normal value under Article 2(6a) of the basic Regulation for the imports of melamine originating in the PRC
3.2.2.
Normal value
3.2.2.1.
Existence of significant distortions
3.2.2.1.1. Introduction
3.2.2.1.2. Significant distortions affecting the domestic prices and costs in the PRC
3.2.2.1.3. 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
3.2.2.1.4. 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
3.2.2.1.5. 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
3.2.2.1.6. 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
3.2.2.1.7. Significant distortions according to Article 2(6a)(b), fifth indent of the basic Regulation: wage costs being distorted
3.2.2.1.8. 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
3.2.2.1.9. Systemic nature of the distortions described
3.2.2.1.10. Conclusion
3.2.2.2.
Representative country
3.2.2.3.
Undistorted costs and benchmarks and sources used to establish them
Factor of Production |
Commodity Code in Türkiye |
Undistorted value (CNY) |
Unit of measurement |
Source of information |
Raw materials |
||||
Urea |
310210 |
4,41 |
kg |
Global Trade Atlas (‘GTA’)(90) |
Ammonia |
281410 |
5,91 |
kg |
GTA |
Energy/Utilities |
||||
Electricity |
n/a |
0,56 |
kWh |
Turkish Statistical Institute |
Natural gas |
n/a |
53,58 |
GJ |
Turkish Statistical Institute |
Steam |
n/a |
199,04 |
tonne |
Expiry review request |
Water |
n/a |
9,78 |
m3 |
Kocaeli City Water and Sewerage General Directorate |
Labour |
||||
Skilled and unskilled labour |
n/a |
35,53 |
hour |
Turkish Statistical Institute |
By-product |
||||
Ammonia |
281410 |
5,89 |
kg |
GTA |
3.2.2.3.1. Raw materials
3.2.2.3.2. Energy/utilities
3.2.2.3.3. Labour
3.2.2.3.4. By-products
3.2.2.3.5. Manufacturing overheads, SG&A, and profit
3.2.2.4.
Calculation of the normal value
3.2.3.
Export price
3.2.4.
Comparison and dumping margins
3.3.
Likelihood of continuation of dumping
3.3.1.
Production capacity and spare capacity in the PRC
3.3.2.
Attractiveness of the Union market
3.3.3.
Conclusion on the likelihood of continuation of dumping
4.
INJURY
4.1.
Definition of the Union industry and Union production
4.2.
Union consumption
|
2019 |
2020 |
2021 |
RIP |
Total Union consumption |
390 729 |
364 168 |
427 309 |
432 773 |
Index (2019 = 100) |
100 |
93 |
109 |
111 |
Source: Eurostat, Applicant. |
4.3.
Imports from the country concerned
4.3.1.
Volume and market share of the imports from the country concerned
|
2019 |
2020 |
2021 |
RIP |
Volume of imports from the PRC (tonnes) |
6 704 |
1 222 |
27 270 |
64 673 |
Index (2019 = 100) |
100 |
18 |
407 |
965 |
Market share of imports from the PRC (%) |
1,7 |
0,3 |
6,4 |
14,9 |
Index (2019 = 100) |
100 |
20 |
372 |
871 |
Source: Eurostat. |
4.3.2.
Prices of the imports from China and price undercutting.
4.3.2.1.
Prices
|
2019 |
2020 |
2021 |
RIP |
China |
1 155 |
958 |
1 627 |
2 224 |
Index (2019 = 100) |
100 |
83 |
141 |
193 |
Source: Eurostat. |
4.3.2.2.
Price undercutting
4.4.
Volumes and prices of imports from third countries
Country |
|
2019 |
2020 |
2021 |
RIP |
Qatar |
Import volume (tonnes) |
33 941 |
26 256 |
35 622 |
31 725 |
|
Index (2019 = 100) |
100 |
77 |
105 |
93 |
|
Market share (%) |
8,7 |
7,2 |
8,3 |
7,3 |
|
Index (2019 = 100) |
100 |
83 |
96 |
84 |
|
Average price (EUR/tonne) |
1 011 |
824 |
1 548 |
2 479 |
|
Index (2019 = 100) |
100 |
81 |
153 |
245 |
Trinidad and Tobago |
Import volume (tonnes) |
13 719 |
8 370 |
14 112 |
12 507 |
|
Index (2019 = 100) |
100 |
61 |
103 |
91 |
|
Market share (%) |
3,5 |
2,3 |
3,3 |
3,0 |
|
Index (2019 = 100) |
100 |
65 |
94 |
84 |
|
Average price (EUR/tonne) |
1 091 |
850 |
1 572 |
2 485 |
|
Index (2019 = 100) |
100 |
78 |
144 |
227 |
Japan |
Import volume (tonnes) |
13 699 |
9 195 |
9 499 |
7 576 |
|
Index (2019 = 100) |
100 |
67 |
69 |
55 |
|
Market share (%) |
3,5 |
2,5 |
2,2 |
1,8 |
|
Index (2019 = 100) |
100 |
72 |
63 |
50 |
|
Average price (EUR/tonne) |
1 076 |
912 |
1 295 |
2 046 |
|
Index (2019 = 100) |
100 |
85 |
120 |
190 |
Other third countries |
Import volume (tonnes) |
37 825 |
28 238 |
22 673 |
21 480 |
|
Index (2019 = 100) |
100 |
75 |
60 |
57 |
|
Market share (%) |
9,7 |
7,8 |
5,3 |
5,0 |
|
Index (2019 = 100) |
100 |
80 |
55 |
51 |
|
Average price (EUR/tonne) |
940 |
816 |
1 671 |
2 447 |
|
Index (2019 = 100) |
100 |
87 |
178 |
260 |
Total imports excluding China |
Import volume (tonnes) |
99 183 |
72 059 |
81 907 |
73 288 |
|
Index (2019 = 100) |
100 |
73 |
83 |
74 |
|
Market share (%) |
25,4 |
19,8 |
19,2 |
17,0 |
|
Index (2019 = 100) |
100 |
78 |
76 |
67 |
|
Average price (EUR/tonne) |
1 004 |
835 |
1 557 |
2 427 |
|
Index (2019 = 100) |
100 |
83 |
155 |
242 |
Source: Eurostat. |
4.5.
Economic situation of the Union industry
4.5.1.
General remarks
4.5.2.
Production, production capacity and capacity utilisation
|
2019 |
2020 |
2021 |
RIP |
Production volume (tonnes) |
403 513 |
401 780 |
396 575 |
382 187 |
Index (2019 = 100) |
100 |
100 |
98 |
95 |
Production capacity (tonnes) |
480 383 |
480 578 |
477 621 |
472 494 |
Index (2019 = 100) |
100 |
100 |
99 |
98 |
Capacity utilisation (%) |
84,0 |
83,6 |
83,0 |
80,9 |
Index (2019 = 100) |
100 |
100 |
99 |
96 |
Source: Applicants. |
4.5.3.
Sales volume and market share
|
2019 |
2020 |
2021 |
RIP |
Total sales volume on the Union market – unrelated customers |
284 842 |
290 888 |
318 133 |
294 513 |
Index (2019 = 100) |
100 |
102 |
112 |
103 |
Market share (%) |
72,9 |
79,9 |
74,5 |
68,1 |
Index (2019 = 100) |
100 |
110 |
102 |
93 |
Source: Eurostat, Applicants. |
4.5.4.
Growth
4.5.5.
Prices and factors affecting prices
|
2019 |
2020 |
2021 |
RIP |
Weighted average unit sales price in the Union |
1 149 |
928 |
1 863 |
2 811 |
Weighted average unit sales price in the Union (Index, 2019 = 100) |
100 |
81 |
162 |
245 |
Unit cost of production |
980 |
906 |
1 611 |
2 250 |
Unit cost of production (Index, 2019 = 100) |
100 |
92 |
164 |
230 |
Source: Sampled Union producers. |
4.5.6.
Employment and productivity
|
2019 |
2020 |
2021 |
RIP |
Number of employees |
647 |
632 |
642 |
641 |
Index (2019 = 100) |
100 |
98 |
99 |
99 |
Labour Productivity (tonne/employee) |
515 |
524 |
508 |
498 |
Index (2019 = 100) |
100 |
102 |
99 |
97 |
Average labour costs per employee |
71 772 |
73 491 |
77 431 |
76 913 |
Average labour costs per employee (Index, 2019 = 100) |
100 |
102 |
108 |
107 |
Source: Applicants, Sampled Union producers. |
4.5.7.
Inventories
|
2019 |
2020 |
2021 |
RIP |
Closing stocks |
20 615 |
12 151 |
5 372 |
24 530 |
Index (2019 = 100) |
100 |
59 |
26 |
119 |
Closing stocks as a percentage of production |
5,2 |
3,1 |
1,4 |
6,3 |
Index (2019 = 100) |
100 |
59 |
26 |
121 |
Source: Sampled Union producers. |
4.5.8.
Profitability, cash flow, investments, return on investments and ability to raise capital
|
2019 |
2020 |
2021 |
RIP |
Profitability of sales in the Union to unrelated customers (%) |
8,0 |
–4,1 |
12,3 |
17,3 |
Profitability of sales in the Union to unrelated customers (Index, 2019 = 100) |
100 |
–51 |
154 |
216 |
Cash flow |
46 403 891 |
12 158 042 |
95 868 270 |
118 352 455 |
Cash flow (Index, 2019 = 100) |
100 |
26 |
207 |
255 |
Investments |
42 800 119 |
25 704 881 |
32 880 347 |
33 110 890 |
Investments (Index, 2019 = 100) |
100 |
60 |
77 |
77 |
Return on investments (%) |
14,5 |
–10,2 |
46,2 |
88,4 |
Return on investments (Index, 2019 = 100) |
100 |
–70 |
319 |
610 |
Source: Sampled Union producers. |
4.5.9.
Conclusion on the situation of the Union industry
5.
LIKELIHOOD OF RECURRENCE OF INJURY IF THE MEASURES WERE TO BE REPEALED
6.
UNION INTEREST
6.1.
Introduction
6.2.
Interest of the Union industry
6.3.
Interest of unrelated importers and users
6.4.
Conclusion on Union interest
7.
ANTI-DUMPING MEASURES
Article 1
Company |
Minimum import price (EUR/tonne net product weight) |
Duty (EUR/tonne net product weight) |
TARIC additional code |
Sichuan Golden-Elephant Sincerity Chemical Co., Ltd |
1 153 |
|
A 986 |
Shandong Holitech Chemical Industry Co., Ltd |
1 153 |
|
A 987 |
Henan Junhua Development Company Ltd |
1 153 |
|
A 988 |
All other companies |
— |
415 |
A 999 |