COMMISSION IMPLEMENTING REGULATION (EU) 2024/1896
of 11 July 2024
imposing a provisional anti-dumping duty on imports of certain polyvinyl chloride (‘PVC’) originating in Egypt 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 Union producers
1.4.2.
Sampling of importers
1.4.3.
Sampling of exporting producers in Egypt
1.4.4.
Sampling of exporting producers in the United States of America
1.5.
Individual examination
1.6.
Comments on initiation
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
3. DUMPING
3.1.
Egypt
3.1.1.
Cooperation of exporting producers
3.1.2.
Unrelated traders
3.1.3.
Normal value
3.1.4.
Export price
3.1.5.
Comparison
3.1.6.
Dumping margins
Company |
Provisional dumping margin |
TCI Sanmar Chemicals S.A.E. |
86,1 % |
Egyptian Petrochemical Company |
109,5 % |
All other companies |
109,5 % |
3.2.
United States of America
3.2.1.
Unrelated traders
3.2.2.
Normal value
3.2.3.
Export price
3.2.4.
Dumping margins
Company |
Provisional dumping margin |
Formosa Plastics Corporation |
70,3 % |
Westlake Chemicals |
58,0 % |
Company |
Provisional dumping margin |
Formosa Plastics Corporation |
70,3 % |
Westlake Chemicals |
58,0 % |
Other cooperating companies |
62,1 % |
All other companies |
77,0 % |
4. INJURY
4.1.
Definition of the Union industry and Union production
4.2.
Determination of the relevant Union market
4.3.
Union consumption
|
2020 |
2021 |
2022 |
IP |
||
Total Union consumption |
3 952 433 |
4 452 620 |
3 636 723 |
3 223 419 |
||
Index |
100 |
113 |
92 |
82 |
||
|
4.4.
Imports from the countries concerned
4.4.1.
Cumulative assessment of the effects of imports from the countries concerned
4.4.2.
Volume and market share of the imports from the countries concerned
|
2020 |
2021 |
2022 |
IP |
||
EGYPT |
||||||
Volume of imports |
7 252 |
24 566 |
44 562 |
62 004 |
||
Index (2020 = 100) |
100 |
339 |
614 |
855 |
||
Market share |
0,18 % |
0,55 % |
1,23 % |
1,92 % |
||
Index (2020 = 100) |
100 |
300 |
668 |
1 048 |
||
UNITED STATES OF AMERICA (USA) |
||||||
Volume of imports |
33 737 |
41 430 |
127 713 |
267 390 |
||
Index (2020 = 100) |
100 |
123 |
379 |
793 |
||
Market share USA |
0,85 % |
0,93 % |
3,51 % |
8,30 % |
||
Index (2020 = 100) |
100 |
109 |
411 |
972 |
||
COUNTRIES CONCERNED |
||||||
Volume of imports from the countries concerned |
40 989 |
65 996 |
172 275 |
329 394 |
||
Index (2020 = 100) |
100 |
161 |
420 |
804 |
||
Market share countries concerned |
1,04 % |
1,48 % |
4,74 % |
10,22 % |
||
Index (2020 = 100) |
100 |
143 |
457 |
985 |
||
|
4.4.3.
Prices of the imports from the countries concerned and price undercutting / price suppression
|
2020 |
2021 |
2022 |
IP |
||
EGYPT |
||||||
Average price |
688 |
1 449 |
1 353 |
926 |
||
Index |
100 |
211 |
197 |
135 |
||
UNITED STATES OF AMERICA (USA) |
||||||
Average price |
821 |
1 525 |
1 405 |
903 |
||
Index |
100 |
186 |
171 |
110 |
||
COUNTRIES CONSIDERED |
||||||
Weighted average price |
798 |
1 497 |
1 392 |
907 |
||
Index |
100 |
188 |
174 |
114 |
||
|
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
|
2020 |
2021 |
2022 |
IP |
||
Production volume (tonnes) |
4 953 948 |
4 976 725 |
4 125 375 |
3 842 081 |
||
Index |
100 |
100 |
83 |
78 |
||
Production capacity (tonnes) |
5 455 000 |
5 455 000 |
5 555 000 |
5 555 000 |
||
Index |
100 |
100 |
102 |
102 |
||
Capacity utilisation |
91 % |
91 % |
74 % |
69 % |
||
Index |
100 |
100 |
82 |
76 |
||
|
4.5.2.2.
Sales volume and market share
|
2020 |
2021 |
2022 |
IP |
||
Total sales volume on the Union market (tonnes) |
3 593 662 |
3 981 285 |
3 120 959 |
2 571 820 |
||
Index |
100 |
111 |
87 |
72 |
||
Market share |
91 % |
89 % |
86 % |
80 % |
||
Index |
100 |
98 |
94 |
88 |
||
|
4.5.2.3.
Growth
4.5.2.4.
Employment and productivity
|
2020 |
2021 |
2022 |
IP |
||
Number of employees |
4 135 |
4 068 |
3 975 |
4 014 |
||
Index |
100 |
98 |
96 |
97 |
||
Productivity (tonnes/employee) |
1 198 |
1 223 |
1 038 |
957 |
||
Index |
100 |
102 |
87 |
80 |
||
|
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
|
2020 |
2021 |
2022 |
IP |
||
Average unit sales price in the Union on the total market (EUR/tonne) |
690 |
1 177 |
1 566 |
1 134 |
||
Index |
100 |
170 |
227 |
164 |
||
Unit cost of production (EUR/tonne) |
677 |
967 |
1 354 |
1 162 |
||
Index |
100 |
143 |
200 |
172 |
||
|
4.5.3.2.
Labour costs
|
2020 |
2021 |
2022 |
IP |
||
Average labour costs per employee (EUR) |
115 266 |
117 134 |
119 662 |
120 571 |
||
Index |
100 |
102 |
104 |
105 |
||
|
4.5.3.3.
Inventories
|
2020 |
2021 |
2022 |
IP |
||
Closing stocks (tonnes) |
61 181 |
68 986 |
74 985 |
58 304 |
||
Index |
100 |
113 |
123 |
95 |
||
Closing stocks as a percentage of production |
5,20 % |
5,92 % |
6,77 % |
6,06 % |
||
Index |
100 |
114 |
130 |
117 |
||
|
4.5.3.4.
Profitability, cash flow, investments, return on investments and ability to raise capital
|
2020 |
2021 |
2022 |
IP |
||
Profitability of sales in the Union to unrelated customers (% of sales turnover) |
3,5 |
17,7 |
13,1 |
–2,6 |
||
Index |
100 |
506 |
374 |
–74 |
||
Cash flow (EUR) |
63 543 946 |
267 522 792 |
241 989 149 |
–13 993 872 |
||
Index |
100 |
421 |
381 |
–22 |
||
Investments (EUR) |
64 616 015 |
61 243 727 |
82 005 921 |
141 483 932 |
||
Index |
100 |
95 |
127 |
219 |
||
Return on investments (%) |
10 |
120 |
93 |
–26 |
||
Index |
100 |
1 193 |
927 |
– 258 |
||
|
4.5.4.
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 |
|
2020 |
2021 |
2022 |
IP |
||
Mexico |
Volume (tonnes) |
142 867 |
161 713 |
160 261 |
129 496 |
||
|
Index |
100 |
113 |
112 |
91 |
||
|
Market share |
4 % |
4 % |
4 % |
4 % |
||
|
Average price (EUR/tonne) |
703 |
1 214 |
1 538 |
954 |
||
|
Index |
100 |
173 |
219 |
136 |
||
Norway |
Volume (tonnes) |
67 067 |
92 360 |
54 769 |
46 300 |
||
|
Index |
100 |
138 |
82 |
69 |
||
|
Market share |
2 % |
2 % |
2 % |
1 % |
||
|
Average price (EUR/tonne) |
839 |
1 313 |
1 719 |
1 356 |
||
|
Index |
100 |
156 |
205 |
162 |
||
South Korea |
Volume (tonnes) |
2 335 |
11 792 |
23 891 |
50 703 |
||
|
Index |
100 |
505 |
1 023 |
2 171 |
||
|
Market share |
0 % |
0 % |
1 % |
2 % |
||
|
Average price (EUR/tonne) |
1 278 |
1 534 |
1 686 |
969 |
||
|
Index |
100 |
120 |
132 |
76 |
||
United Kingdom |
Volume (tonnes) |
47 801 |
17 212 |
14 314 |
16 309 |
||
|
Index |
100 |
36 |
30 |
34 |
||
|
Market share |
1 % |
0 % |
0 % |
1 % |
||
|
Average price (EUR/tonne) |
836 |
1 088 |
1 449 |
1 224 |
||
|
Index |
100 |
130 |
173 |
146 |
||
Other third countries |
Volume (tonnes) |
57 711 |
122 261 |
90 254 |
79 397 |
||
|
Index |
100 |
212 |
156 |
138 |
||
|
Market share |
1 % |
3 % |
2 % |
2 % |
||
|
Average price (EUR/tonne) |
721 |
1 493 |
1 452 |
959 |
||
|
Index |
100 |
207 |
201 |
133 |
||
Total of all third countries except the countries concerned |
Volume (tonnes) |
317 781 |
405 338 |
343 489 |
322 205 |
||
|
Index |
100 |
128 |
108 |
101 |
||
|
Market share |
8 % |
9 % |
9 % |
10 % |
||
|
Average price (EUR/tonne) |
759 |
1 324 |
1 551 |
1 029 |
||
|
Index |
100 |
174 |
204 |
136 |
||
|
5.2.2.
Export performance of the Union industry
|
2020 |
2021 |
2022 |
IP |
||
Export volume of Union producers (tonnes) |
1 494 677 |
1 227 548 |
1 120 519 |
1 101 408 |
||
Index |
100 |
82 |
75 |
74 |
||
Average price of Union producers (EUR/tonne) |
822 |
1 414 |
1 509 |
1 075 |
||
Index |
100 |
172 |
184 |
131 |
||
|
5.2.3.
Overcapacity in the PVC industry
5.2.4.
Energy crisis in the Union
5.2.5.
Economic contraction, market dynamics
5.2.6.
Force majeure
5.3.
Conclusion on causation
6. LEVEL OF MEASURES
6.1.
Injury margin
6.2.
Conclusion on the level of measures
Country |
Company |
Dumping margin (%) |
Injury margin (%) |
Provisional anti-dumping duty (%) |
Egypt |
Egyptian Petrochemical Company |
109,5 |
100,1 |
100,1 |
|
TCI Sanmar Chemicals S.A.E. |
86,1 |
74,2 |
74,2 |
|
All other companies |
109,5 |
100,1 |
100,1 |
USA |
Formosa Plastics Corporation |
70,3 |
90,6 |
70,3 |
|
Westlake Chemicals |
58,0 |
87,2 |
58,0 |
|
Other cooperating companies |
62,1 |
88,3 |
62,1 |
|
All other companies |
77,0 |
90,6 |
77,0 |
7. UNION INTEREST
7.1.
Interest of the Union industry
7.2.
Importers
7.3.
Users
7.4.
Conclusion on Union interest
8. PROVISIONAL ANTI-DUMPING MEASURES
Country |
Company |
Provisional anti-dumping duty (%) |
Egypt |
Egyptian Petrochemical Company |
100,1 |
|
TCI Sanmar Chemicals S.A.E. |
74,2 |
|
All other companies |
100,1 |
USA |
Formosa Plastics Corporation |
70,3 |
|
Westlake Chemicals |
58,0 |
|
Other cooperating companies |
62,1 |
|
All other companies |
77,0 |
9. INFORMATION AT PROVISIONAL STAGE
10. FINAL PROVISION
Article 1
Country of origin |
Company |
Provisional anti-dumping duty |
TARIC additional code |
Egypt |
Egyptian Petrochemical Company |
100,1 % |
89BA |
|
TCI Sanmar Chemicals S.A.E. |
74,2 % |
89BB |
|
All other imports originating in Egypt |
100,1 % |
8999 |
USA |
Formosa Plastics Corporation |
70,3 % |
89BC |
|
Westlake Chemicals |
58,0 % |
89BD |
|
Oxy Vinyls, LP |
62,1 % |
89BE |
|
Shintech Incorporated |
62,1 % |
89BF |
|
All other imports originating in the United States of America |
77,0 % |
8999 |