COMMISSION IMPLEMENTING REGULATION (EU) 2024/1923
of 10 July 2024
imposing a provisional anti-dumping duty on imports of titanium dioxide originating in the People’s Republic of China
1.
PROCEDURE
1.1.
Initiation
1.2.
Registration
1.3.
Interested parties
1.4.
Comments on initiation
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
2.4.1.
Masterbatch White
2.4.2.
Claims on the PCN structure
2.4.3.
Product exclusion requests
2.4.3.1. Laminate-grade TiO
2
2.4.3.2. TiO
2
of purity of 99,9 % or more
2.4.3.3. Graphic TiO
2
2.4.3.4. Uncoated TiO
2
for non-white pigments
2.4.3.5. Food-grade TiO
2
2.4.3.6. Exclusion of TiO
2
produced using the Chloride process
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
3.2.2.
Significant distortions affecting the domestic prices and costs in China
3.2.3.
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
3.2.4.
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
3.2.5.
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
3.2.6.
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
3.2.7.
Significant distortions according to Article 2(6a)(b), fifth indent of the basic Regulation: wage costs being distorted
3.2.8.
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
3.2.9.
Systemic nature of the distortions described
3.2.10.
Conclusion
3.3.
Representative country
3.3.1.
General remarks
3.3.2.
A level of economic development similar to the PRC
3.3.3.
Readily available data in the representative country
3.3.4.
Level of social and environmental protection
3.3.5.
Conclusion
3.4.
Sources used to establish undistorted costs and benchmarks
3.4.1.
Factors of production
Factor of Production |
Commodity Codes /available codes and source of data |
Price in CNY |
Unit of measurement |
|
Raw materials |
||||
Ilmenite (Sulphate Process) |
2614 00 |
TZMI |
2 842,20 |
Tonne |
Ilmenite (Chloride Process) |
2614 00 |
TZMI |
2 772,72 |
Tonne |
Synthetic Rutile |
2614 00 |
TZMI |
9 827,98 |
Tonne |
Refined Synthetic Rutile / Calciner Discharge / Rough TiO2 – Rutile |
2614 00 |
TZMI |
10 568,24 |
Tonne |
(High) Titanium Slag / Chloride Process Slag |
2620 99 |
TZMI |
6 757,92 |
Tonne |
Sulfuric acid (98 %) |
2807000010 |
Global Trade Atlas (GTA)(92) / MacMap(93) |
912,61 |
Tonne |
Sulphur |
2503000000 |
GTA / MacMap |
1 250,16 |
Tonne |
Calcined petroleum coke |
2713129000 |
GTA / MacMap |
5 271,81 |
Tonne |
(Liquid) caustic soda / Sodium hydroxide (32 %) |
2815110000 , 2815120000 |
GTA / MacMap |
3 386,93 |
Tonne |
Bituminous coal |
2701 12 |
GTA / MacMap |
1 762,22 |
Tonne |
Zirconyl Chloride(94) |
2827 49 12 , 2827 49 29 |
GTA / MacMap |
16 761,84 |
Tonne |
Iron Powder |
7205 29 10 , 7205 29 20 , 7205 29 90 |
GTA / MacMap |
13 049,93 |
Tonne |
Aluminium Powder |
7603 10 |
GTA / MacMap |
39 179,62 |
Tonne |
Aluminium Hydroxide |
2818 30 |
GTA / MacMap |
13 943,93 |
Tonne |
Phosphoric acid |
2809 20 11 , 2809 20 19 , 2809 20 20 , 2809 20 30 , 2809 20 90 |
GTA / MacMap |
6 062,29 |
Tonne |
Labour |
||||
Labour |
[N/A] |
Instituto Brasileiro de Geografia e Estatística(95) |
79,05 |
FTE |
Energy |
||||
Electricity |
[N/A] |
Ministério de Minas e Energia(96) |
0,8868 |
kWh |
Natural Gas |
[N/A] |
Ministério de Minas e Energia(97) |
4,58 |
m3 |
Steam |
[N/A] |
Ministério de Minas e Energia(98) |
356,66 |
Tonne |
3.4.2.
Raw materials
3.4.3.
Labour
3.4.4.
Electricity
3.4.5.
Natural gas
3.4.6.
Steam
3.4.7.
Manufacturing overhead costs, SG&A and profits
3.4.8.
Calculation
3.5.
Export price
3.6.
Comparison
3.6.1.
Adjustments made to the normal value
3.6.2.
Adjustments made to the export price
3.7.
Dumping margins
Company |
Provisional dumping margin |
||||||||||
LB group:
|
39,7 % |
||||||||||
Anhui Gold Star group:
|
14,4 % |
Company |
Provisional dumping margin |
||||||||||
LB group:
|
39,7 % |
||||||||||
Anhui Gold Star group:
|
14,4 % |
||||||||||
Other cooperating companies |
35,0 % |
||||||||||
All other companies |
39,7 % |
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 |
Investigation period |
||
Total Union consumption |
1 220 424 |
1 267 582 |
1 125 734 |
954 998 |
||
Index |
100 |
104 |
92 |
78 |
||
|
4.4.
Imports from the country concerned
4.4.1.
Volume and market share of the imports from the country concerned
|
2020 |
2021 |
2022 |
Investigation period |
||
Volume of imports from the country concerned (tonnes) |
178 256 |
169 146 |
186 885 |
209 375 |
||
Index |
100 |
95 |
105 |
117 |
||
Market share |
15 % |
13 % |
17 % |
22 % |
||
Index |
100 |
91 |
114 |
150 |
||
|
4.4.2.
Prices of the imports from the country concerned and price undercutting
|
2020 |
2021 |
2022 |
Investigation period |
||
China |
1 826 |
2 507 |
3 032 |
2 235 |
||
Index |
100 |
137 |
166 |
122 |
||
|
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 |
Investigation period |
||
Production volume (tonnes) |
809 485 |
843 918 |
743 733 |
560 647 |
||
Index |
100 |
104 |
92 |
69 |
||
Production capacity (tonnes) |
964 000 |
934 300 |
941 900 |
943 200 |
||
Index |
100 |
97 |
98 |
98 |
||
Capacity utilisation |
84 % |
90 % |
79 % |
59 % |
||
Index |
100 |
108 |
94 |
71 |
||
|
4.5.2.2. Sales volume and market share
|
2020 |
2021 |
2022 |
Investigation period |
||
Sales volume on the Union market (tonnes) |
604 643 |
680 395 |
559 502 |
451 583 |
||
Index |
100 |
113 |
93 |
75 |
||
Market share |
49 % |
53 % |
49 % |
47 % |
||
Index |
100 |
108 |
100 |
95 |
||
|
4.5.2.3. Growth
4.5.2.4. Employment and productivity
|
2020 |
2021 |
2022 |
Investigation period |
||
Number of employees |
5 105 |
4 915 |
4 838 |
4 787 |
||
Index |
100 |
96 |
95 |
94 |
||
Productivity (tonne/FTE) |
159 |
172 |
154 |
117 |
||
Index |
100 |
108 |
97 |
74 |
||
|
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 |
Investigation period |
||
Average unit sales price in the Union on the free market (EUR/ tonne) |
2 277 |
2 432 |
3 076 |
2 990 |
||
Index |
100 |
107 |
135 |
131 |
||
Unit cost of production (EUR/ tonne) |
2 010 |
2 203 |
3 025 |
3 442 |
||
Index |
100 |
110 |
151 |
171 |
||
|
4.5.3.2. Labour costs
|
2020 |
2021 |
2022 |
Investigation period |
||
Average labour costs (EUR/FTE) |
63 811 |
67 261 |
68 562 |
67 756 |
||
Index |
100 |
105 |
107 |
106 |
||
|
4.5.3.3. Inventories
|
2020 |
2021 |
2022 |
Investigation period |
||
Closing stocks (tonnes) |
74 928 |
49 858 |
60 945 |
49 762 |
||
Index |
100 |
67 |
81 |
66 |
||
Closing stocks as a percentage of production |
9,3 |
5,9 |
8,2 |
8,9 |
||
Index |
100 |
64 |
89 |
96 |
||
|
4.5.3.4. Profitability, cash flow, investments, return on investments and ability to raise capital
|
2020 |
2021 |
2022 |
Investigation period |
||
Profitability of sales in the Union to unrelated customers (% of sales turnover) |
7,9 % |
9,8 % |
5,1 % |
–11,7 % |
||
Index |
100 |
125 |
65 |
- 148 |
||
Cash flow (EUR) |
92 461 606 |
124 892 941 |
3 767 112 |
-4 293 138 |
||
Index |
100 |
135 |
4 |
-46 |
||
Investments (EUR) |
37 870 922 |
36 314 534 |
39 542 712 |
43 030 210 |
||
Index |
100 |
96 |
104 |
114 |
||
Return on investments |
53 % |
41 % |
2 % |
-67 % |
||
Index |
100 |
79 |
5 |
- 127 |
||
|
4.5.4.
Conclusion on injury
4.5.4.1. Comments by the parties
5.
CAUSATION
5.1.
Effects of the dumped imports
5.2.
Effects of other factors
5.2.1.
Cyclicality of the TiO
2
market
5.2.2.
Demand in the Union market
5.2.3.
Imports from third countries
Country |
|
2020 |
2021 |
2022 |
Investigation period |
||
United Kingdom |
Volume (tonnes) |
187 211 |
108 085 |
140 773 |
101 465 |
||
|
Index |
100 |
58 |
75 |
54 |
||
|
Market share |
15 % |
9 % |
13 % |
11 % |
||
|
Average price |
2 238 |
2 542 |
3 104 |
3 114 |
||
|
Index |
100 |
114 |
139 |
139 |
||
Mexico |
Volume (tonnes) |
93 747 |
120 213 |
102 347 |
73 036 |
||
|
Index |
100 |
128 |
109 |
78 |
||
|
Market share |
8 % |
9 % |
9 % |
8 % |
||
|
Average price |
1 504 |
1 514 |
1 869 |
2 388 |
||
|
Index |
100 |
101 |
124 |
159 |
||
USA |
Volume (tonnes) |
63 383 |
99 464 |
81 215 |
59 948 |
||
|
Index |
100 |
157 |
128 |
95 |
||
|
Market share |
5 % |
8 % |
7 % |
6 % |
||
|
Average price |
2 146 |
2 321 |
2 954 |
2 925 |
||
|
Index |
100 |
108 |
138 |
136 |
||
Other third countries (except China) |
Volume (tonnes) |
97 372 |
94 045 |
59 516 |
65 654 |
||
|
Index |
100 |
97 |
61 |
67 |
||
|
Market share |
8 % |
7 % |
5 % |
7 % |
||
|
Average price |
1 935 |
2 201 |
2 892 |
2 781 |
||
|
Index |
100 |
114 |
149 |
144 |
||
Total of all third countries except China |
Volume (tonnes) |
441 713 |
421 807 |
383 850 |
300 102 |
||
|
Index |
100 |
95 |
87 |
68 |
||
|
Market share |
36 % |
33 % |
34 % |
31 % |
||
|
Average price |
2 002 |
2 121 |
2 710 |
2 827 |
||
|
Index |
100 |
106 |
135 |
141 |
||
|
5.2.4.
Export performance of the Union industry
|
2020 |
2021 |
2022 |
Investigation period |
||
Export volume (tonnes) |
223 194 |
225 958 |
177 595 |
151 869 |
||
Index |
100 |
101 |
80 |
68 |
||
Average price (EUR/tonne) |
2 371 |
2 514 |
3 396 |
3 092 |
||
Index |
100 |
106 |
143 |
130 |
||
|
5.2.5.
Rising cost of production
5.2.6.
Market intelligence predicting recovery
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 |
LB group |
39,7 |
53,4 |
Anhui Gold Star group |
14,4 |
53,0 |
|
Other cooperating companies |
35,0 |
53,3 |
|
All other companies |
39,7 |
53,4 |
6.2.
Examination of the margin adequate to remove the injury to the Union industry
6.3.
Conclusion on the level of measures
Company |
Provisional anti-dumping duty |
LB group |
39,7 % |
Anhui Gold Star group |
14,4 % |
Other cooperating companies |
35,0 % |
All other companies |
39,7 % |
7.
UNION INTEREST
7.1.
Interest of the Union industry
7.2.
Interest of unrelated importers and traders
7.3.
Interest of users
7.3.1.
Users who submitted questionnaire replies
7.3.2.
Other users
7.4.
Conclusion on Union interest
8.
PROVISIONAL ANTI-DUMPING MEASURES
Company |
Provisional anti-dumping duty |
LB group |
39,7 % |
Anhui Gold Star group |
14,4 % |
Other cooperating companies |
35,0 % |
All other companies |
39,7 % |
9.
REGISTRATION
10.
INFORMATION AT PROVISIONAL STAGE
11.
FINAL PROVISIONS
Article 1
Company |
Provisional anti-dumping duty |
TARIC additional code |
||||||||||
LB group:
|
39,7 % |
89CB |
||||||||||
Anhui Gold Star group:
|
14,4 % |
89CC |
||||||||||
Other cooperating companies listed in Annex |
35,0 % |
see Annex |
||||||||||
All other imports originating in the PRC |
39,7 % |
8999 |
Article 2
Article 3
Article 4
ANNEX
People’s Republic of China’s cooperating exporting producers not sampled
Country |
Name |
TARIC additional code |
People’s Republic of China |
ANHUI ANNADA TITANIUM INDUSTRY CO., LTD. |
89CO |
People’s Republic of China |
CITIC TITANIUM INDUSTRY CO., LTD. |
89CP |
People’s Republic of China |
Chongqing Titanium Industry Co., Ltd. of Pangang Group |
89CQ |
People’s Republic of China |
GUANGXI BLUESTAR DAHUA CHEMICAL CO., LTD. |
89CR |
People’s Republic of China |
GUANGXI JINMAO TITANIUM CO., LTD |
89CS |
People’s Republic of China |
GUANGDONG HUIYUN TITANIUM INDUSTRY CORPORATION LIMITED |
89CT |
People’s Republic of China |
Guangfeng Titanium Co., Ltd. |
89CU |
People’s Republic of China |
Hebei Milson Titanium Dioxide Co., Ltd |
89CV |
People’s Republic of China |
Jinan Yuxing Chemical Co., Ltd |
89CW |
People’s Republic of China |
KUNMING DONGHAO TITANIUM CO., LTD. |
89CX |
People’s Republic of China |
Nanjing Titanium Dioxide Chemical Co., Ltd. |
89CY |
People’s Republic of China |
NINGBO XINFU TITANIUM DIOXIDE CO., LTD |
89CZ |
People’s Republic of China |
PANZHIHUA DARUI TECHNOLOGY CO., LTD. |
89DA |
People’s Republic of China |
PANZHIHUA DONGFANG TITANIUM INDUSTRY CO., LTD. |
89DB |
People’s Republic of China |
PANZHIHUA KAIHAO TECHNOLOGY CO., LTD. |
89DC |
People’s Republic of China |
Pangang Group Titanium Industry Co., Ltd |
89DD |
People’s Republic of China |
SHANDONG XIANGHAI TITANIUM CO., LTD. |
89DE |
People’s Republic of China |
SHANDONG DAWN TITANIUM INDUSTRY CO., LTD. |
89DF |
People’s Republic of China |
SHANDONG DOGUIDE GROUP CO., LTD. |
89DG |
People’s Republic of China |
SHANDONG JINHAI TITANIUM RESOURCES TECHNOLOGY CO., LTD. |
89DH |
People’s Republic of China |
Xuzhou Titanium Dioxide Chemical Co., Ltd. |
89DI |
People’s Republic of China |
Yibin Tianyuan Haifeng Hetai Co., Ltd |
89DJ |
People’s Republic of China |
YUNNAN DAHUTONG TITANIUM INDUSTRY CO., LTD |
89DK |