Commission Implementing Regulation (EU) 2024/819 of 8 March 2024 imposing a definitive anti-dumping duty on imports of certain corrosion resistant steels 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
This is the act as published. Later amendments are not folded into the text below: each one is a separate act in this repository and an entry in this law's history.
- (129) Based on the above, the Commission concluded that if the measures were to expire and the prices at which the Chinese exporting producers would export the product concerned to the Union were in line with the export price to third countries observed during the review, the level of dumping would be significant.
3.10.3. Attractiveness of the Union market
- (130) According to the data from GTA, Chinese exporting producers exported to the nine main destinations mentioned in recital 126 at an average price of 15 % lower than the price prevailing on the Union market during the review investigation period. The applicant also stated in the request for review, that shipping costs from China to Europe decreased significantly during the investigation period 86. Taking the price level and the decrease in shipping costs into account, the Union market is far more attractive to Chinese exporters than all other countries excluding Philippines. Thus, in the absence of measures, potentially higher export prices and volumes to the Union, would yield higher profits than exports to other third countries, which demonstrates the attractiveness of the Union market.
- (131) Although Chinese export volumes to the Union shrank after the imposition of the original measures, Chinese producers manufacture significant volumes of the product under review and, in accordance with GTA statistics, exported close to 10 million of it worldwide during the review investigation period.
- (132) During the review investigation period, the volumes of CRS exported to countries outside the Union were equivalent to the total Union consumption and around 30 % more than Union production, during the same period. Because of the attractiveness of the Union market in terms of pricing, openness and increased consumption, it is considered that if the measures are terminated, Chinese exporters are likely to re-direct significant volumes of CRS at dumped prices to the more lucrative Union market.
- (133) In addition, trade defence measures have been introduced or extended on imports of Chinese CRS in many markets globally. These include India (anti-dumping measures on HS codes 7225 99 and 7226 99), South Africa and Namibia (anti-dumping measures on HS code 7210 49 and 7210 61), Viet Nam (anti-dumping measures on HS code 7225 99), Canada (anti-dumping measures on HS codes 7210 49 and 7226 99), Eurasian Economic Union (anti-dumping measures on HS codes 7210 49 and 7210 61), Malaysia (anti-dumping measures on HS codes 7210 61 and 7226 99) and Thailand (anti-dumping measures on HS code 7210 49) 87. Ukraine also has anti-dumping measures on all HS codes related to the product concerned. There are also Section 232 measures in place in the US and safeguard measures in place in the UK. These measures constitute export limitations for Chinese CRS producers to other significant export markets and further increase the likelihood of redirection of Chinese exports to the Union market in the absence of measures.
- (134) Finally, the PRC remained interested in the Union market even after the imposition of the original measures, as proved by the anti-circumvention investigation of the anti-dumping measures of imports originating in the PRC which extended the measures in question to slightly modified certain corrosion resistant steels 88. The fact that the Union adopted safeguards on certain steel products, including the product under review, does not alter this conclusion. The import volumes under the residual tariff rate quota are set at level which may allow China to export significant amounts of corrosion resistant steels.
- (135) Therefore, if measures are allowed to expire in the EU the Chinese producers are likely to restart exporting to the Union market dumped CRS in significant volumes.
3.10.4. Conclusion on the likelihood of recurrence of dumping
- (136) In view of the above, the Commission concluded that, regardless of whether there was dumping during the review investigation period, there is a strong likelihood that dumping would recur if the current measures were allowed to lapse.
- (137) In particular, the level of the normal value established for the PRC as compared to the level of Chinese export prices to third country markets and the Union, the attractiveness of the Union market in terms of price level and size and the availability of significant production capacity in the PRC all point to a strong likelihood of recurrence of dumping if the current measures would be allowed to lapse.
4. INJURY
4.1. Definition of the Union industry and Union production
- (138) The like product was manufactured by 21 producers in the Union during the period considered. They constitute the ‘Union industry’ within the meaning of Article 4(1) of the basic Regulation.
- (139) The total Union production during the review investigation period was established at around 7 743 498 tonnes, including production for the captive market. The Commission established the production on the basis of the questionnaire replies received from the applicant and the sampled Union producers. As indicated in recital 13, the three Union producers selected in the sample represented 29 % of the total Union production of the like product.
4.2. Union consumption
- (140) The Commission established the Union consumption on the basis of: (a) applicant’s data concerning Union industry’s sales and captive use (including captive sales) of the like product, cross-checked with the sales and captive use volumes reported by sampled Union producers; and (b) imports of the product under review into the Union from all third countries as reported in Eurostat.
- (141) Union consumption developed as follows:
Table 3
Union consumption (tonnes)
| 2019 | 2020 | 2021 | RIP | |
| Total Union consumption | 9 011 034 | 9 184 071 | 11 063 151 | 9 547 573 |
| Index (2019 = 100) | 100 | 102 | 123 | 106 |
| Captive market consumption | 1 864 394 | 1 764 931 | 2 091 845 | 1 916 305 |
| Index 2019 = 100) | 100 | 95 | 112 | 103 |
| Free market consumption | 7 146 640 | 7 419 141 | 8 971 306 | 7 631 268 |
| Index (2019 = 100) | 100 | 104 | 126 | 107 |
| Source: Eurostat, applicant and sampled Union producers. | Source: Eurostat, applicant and sampled Union producers. | Source: Eurostat, applicant and sampled Union producers. | Source: Eurostat, applicant and sampled Union producers. | Source: Eurostat, applicant and sampled Union producers. |
- (142) During the period considered, the Union consumption in the free market increased by 7 %. The increase in consumption was most marked in 2021, due to a recovery following the COVID-19 crisis. In the same period, demand in the captive market fluctuated and overall increased by 3 %. The fluctuations in the captive market were partly due to variations in the level of the use of the lines used to manufacture the product under review for the purpose of manufacturing products falling outside the scope of the review.
4.3. Imports from the country concerned
4.3.1. Volume and market share of the imports from the country concerned
- (143) The Commission established the volume of imports on the basis of Eurostat. The market share of the imports was established by comparing those imports with the Union consumption.
- (144) Imports into the Union from the country concerned developed as follows:
Table 4
Import volume and market share
| 2019 | 2020 | 2021 | RIP | |
| Volume of imports from the PRC (tonnes) | 196 | 232 | 10 926 | 953 |
| Market share of imports from the PRC | 0,0 % | 0,0 % | 0,1 % | 0,0 % |
| Source: Eurostat. | Source: Eurostat. | Source: Eurostat. | Source: Eurostat. | Source: Eurostat. |
- (145) Imports from China of the product under review into the Union were at very low levels throughout the period considered. Consequently, the market share of China was negligible.
4.3.2. Prices of the imports from the country concerned and price undercutting
Table 5
Prices of imports from the country concerned
| 2019 | 2020 | 2021 | RIP | |
| Average price | 998 | 1 037 | 972 | 1 395 |
| Index (2019 = 100) | 100 | 104 | 97 | 140 |
| Source: Eurostat. | Source: Eurostat. | Source: Eurostat. | Source: Eurostat. | Source: Eurostat. |
- (146) Prices from the country concerned increased by 40 % during the period considered, however they applied all the time to minimal volumes of imports. Those minimal volumes of imports from PRC do not allow any meaningful price undercutting calculations.
4.4. Imports from third countries other than PRC
- (147) The volume of imports into the Union as well as the market share and price trends for imports of certain corrosion resistant steels from other third countries developed as follows:
Table 6
Imports from third countries
| Country | 2019 | 2020 | 2021 | RIP | |
| Viet Nam | Volume (tonnes) | 28 972 | 51 241 | 744 010 | 709 484 |
| Index (2019 = 100) | 100 | 177 | 2 568 | 2 449 | |
| Market share | 0,4 % | 0,7 % | 8,3 % | 9,3 % | |
| Index (2019 = 100) | 100 | 170 | 2 046 | 2 293 | |
| Average price (EUR/tonne) | 664 | 608 | 1 007 | 1 132 | |
| Index (2019 = 100) | 100 | 92 | 152 | 170 | |
| Türkiye | Volume (tonnes) | 472 298 | 704 823 | 1 029 743 | 581 706 |
| Index (2019 = 100) | 100 | 149 | 218 | 123 | |
| Market share | 6,6 % | 9,5 % | 11,5 % | 7,6 % | |
| Index (2019 = 100) | 100 | 144 | 174 | 115 | |
| Average price (EUR/tonne) | 615 | 562 | 934 | 1 138 | |
| Index (2019 = 100) | 100 | 91 | 152 | 185 | |
| Taiwan | Volume (tonnes) | 137 310 | 164 223 | 281 377 | 362 660 |
| Index (2019 = 100) | 100 | 120 | 205 | 264 | |
| Market share | 1,9 % | 2,2 % | 3,1 % | 4,8 % | |
| Index (2019 = 100) | 100 | 115 | 163 | 247 | |
| Average price (EUR/tonne) | 655 | 627 | 880 | 1 225 | |
| Index (2019 = 100) | 100 | 96 | 134 | 187 | |
| India | Volume (tonnes) | 195 469 | 159 695 | 479 238 | 197 750 |
| Index (2019 = 100) | 100 | 82 | 245 | 101 | |
| Market share | 2,7 % | 2,2 % | 5,3 % | 2,6 % | |
| Index (2019 = 100) | 100 | 79 | 195 | 95 | |
| Average price (EUR/tonne) | 637 | 576 | 1 023 | 1 091 | |
| Index (2019 = 100) | 100 | 90 | 161 | 171 | |
| South Korea | Volume (tonnes) | 221 329 | 241 201 | 144 540 | 164 311 |
| Index (2019 = 100) | 100 | 109 | 65 | 74 | |
| Market share | 3,1 % | 3,3 % | 1,6 % | 2,2 % | |
| Index (2019 = 100) | 100 | 105 | 52 | 70 | |
| Average price (EUR/tonne) | 683 | 622 | 862 | 1 213 | |
| Index (2019 = 100) | 100 | 91 | 126 | 178 | |
| Russia | Volume (tonnes) | 182 292 | 276 474 | 278 278 | 117 971 |
| Index (2019 = 100) | 100 | 152 | 153 | 65 | |
| Market share | 2,6 % | 3,7 % | 3,1 % | 1,5 % | |
| Index (2019 = 100) | 100 | 146 | 122 | 61 | |
| Average price (EUR/tonne) | 606 | 547 | 988 | 1 148 | |
| Index (2019 = 100) | 100 | 90 | 163 | 189 | |
| South Africa | Volume (tonnes) | – | – | 76 165 | 107 412 |
| Index (2021 = 100) | – | – | 100 | 141 | |
| Market share | – | – | 0,8 % | 1,4 % | |
| Index (2021 = 100) | – | – | 100 | 166 | |
| Average price (EUR/tonne) | – | – | 1 187 | 1 230 | |
| Index (2021 = 100) | – | – | 100 | 104 | |
| Other third countries | Volume (tonnes) | 133 941 | 140 573 | 242 601 | 229 747 |
| Index (2019 = 100) | 100 | 105 | 181 | 172 | |
| Market share | 1,9 % | 1,9 % | 2,7 % | 3,0 % | |
| Index (2019 = 100) | 100 | 101 | 144 | 161 | |
| Average price (EUR/tonne) | 622 | 564 | 960 | 1 125 | |
| Index (2019 = 100) | 100 | 91 | 154 | 181 | |
| Total of all third countries except PRC | Volume (tonnes) | 1 371 611 | 1 738 230 | 3 275 952 | 2 471 041 |
| Index (2019 = 100) | 100 | 127 | 239 | 180 | |
| Market share | 19,2 % | 23,4 % | 36,5 % | 32,4 % | |
| Index (2019 = 100) | 100 | 122 | 190 | 169 | |
| Average price (EUR/tonne) | 634 | 577 | 968 | 1 153 | |
| Index (2019 = 100) | 100 | 91 | 153 | 182 | |
| Source: Eurostat. | Source: Eurostat. | Source: Eurostat. | Source: Eurostat. | Source: Eurostat. | Source: Eurostat. |
- (148) The imports of the product under review from third countries other than the PRC increased overall by 80 %, with a particular peak in 2021 following the recovery from the COVID-19 crisis. Those imports originated predominantly in Türkiye and Viet Nam.
- (149) Imports from Türkiye were significant throughout the period considered, although volumes varied. The initiation on 24 June 2021 89 of an anti-dumping investigation with regard to imports of a similar product originating in Russia and Türkiye 90 may have had a chilling effect on imports of the product under review from those two countries in 2021 and the review investigation period.
- (150) Imports from Viet Nam were limited in 2019 and 2020 but then increased exponentially by more than 2 000 % to become the main import source. The two major reasons for this increase were the entry into force of a free trade agreement between the EU and Viet Nam 91 and the exclusion of Viet Namese corrosion resistant steel from the steel safeguard until June 2022 92.
- (151) The market share of third countries other than the PRC increased from 19,2 % in 2019 to 32,4 % in the review investigation period.
- (152) In the abstract, since 2020 the prices of imports from third countries were lower than those of the Union industry, with the gap becoming narrower over the time. However, it is to be noted that there can be different product mixes and that, specifically with regard to Türkiye, the prices in the table above exclude applicable anti-dumping duties in the last part of 2022.
4.5. Economic situation of the Union industry
4.5.1. General remarks
- (153) The assessment of the economic situation of the Union industry included an evaluation of all economic indicators having a bearing on the state of the Union industry during the period considered.
- (154) As mentioned in section 1.6.1, sampling was used for the assessment of the economic situation of the Union industry.
- (155) For the injury determination, the Commission distinguished between macroeconomic and microeconomic injury indicators. The Commission evaluated the macroeconomic indicators on the basis of data contained in the questionnaire reply of Eurofer relating to all Union producers, cross-checked where necessary with the questionnaire replies from the sampled Union producers. The Commission evaluated the microeconomic indicators on the basis of data contained in the questionnaire replies from the sampled Union producers. Both sets of data were verified and found to be representative of the economic situation of the Union industry.
- (156) The macroeconomic indicators are: production, production capacity, capacity utilisation, sales volume, market share, growth, employment, productivity, magnitude of the dumping margin, and recovery from past dumping.
- (157) The microeconomic indicators are: average unit prices, unit cost, labour costs, inventories, profitability, cash flow, investments, return on investments, and ability to raise capital.
4.5.2. Macroeconomic indicators
4.5.2.1. Production, production capacity and capacity utilisation
- (158) The total Union production, production capacity and capacity utilisation developed over the period considered as follows:
Table 7
Production, production capacity and capacity utilisation
| 2019 | 2020 | 2021 | RIP | |
| Production volume (tonnes) | 9 209 033 | 8 901 268 | 8 995 570 | 7 743 498 |
| Index (2019 = 100) | 100 | 97 | 98 | 84 |
| Production capacity (tonnes) | 11 569 564 | 12 587 213 | 11 159 969 | 11 244 662 |
| Index (2019 = 100) | 100 | 109 | 96 | 97 |
| Capacity utilisation | 79,6 % | 70,7 % | 80,6 % | 68,9 % |
| Index (2019 = 100) | 100 | 89 | 101 | 87 |
| Source: Eurofer and sampled Union producers. | Source: Eurofer and sampled Union producers. | Source: Eurofer and sampled Union producers. | Source: Eurofer and sampled Union producers. | Source: Eurofer and sampled Union producers. |
- (159) The Union industry’s production volume fluctuated and overall dropped by 16 % over the period considered. The fall in 2020 was partly due to the pressure exerted by Turkish and Russian imports 93. Over the period considered, the production capacity of the Union industry varied. Overall, it fell by 3 %. The drop in production volume in the last part of the period considered is for most part, and the drop of production capacity entirely, caused by non-representative financial and consequent operational difficulties experienced by one non-sampled Union producer 94. The capacity utilization rate dropped by 13 %, which is namely the result of the drop in Union production.
- (160) However, as established in the original investigation, the above trends are partly theoretical as Union producers use hot dipped galvanising lines to produce the product under review but also other products that are not subject to this review. Over the period considered, the share of the production lines that were allocated to the product under review changed for certain producers.
4.5.2.2. Free market sales volumes, captively used volumes and market share
- (161) The Union industry’s sales volume and market share developed over the period considered as follows:
Table 8
Free market sales volume and market share
| 2019 | 2020 | 2021 | RIP | |
| Free market sales (tonnes) | 5 774 832 | 5 680 681 | 5 684 429 | 5 159 274 |
| Index (2019 = 100) | 100 | 98 | 98 | 89 |
| Market share of free market sales (%) | 80,8 % | 76,6 % | 63,4 % | 67,6 % |
| Index (2019 = 100) | 100 | 95 | 78 | 84 |
| Source: Eurofer and sampled Union producers. | Source: Eurofer and sampled Union producers. | Source: Eurofer and sampled Union producers. | Source: Eurofer and sampled Union producers. | Source: Eurofer and sampled Union producers. |
- (162) The Union industry sales volume on the Union market decreased by 11 % during the period considered. The fall occurred mainly between 2021 and the review investigation period and is explained by the shrinkage of consumption in that period and the collapse of a large non-sampled Union producer in 2021, as explained in recital 159.
- (163) Over the period considered, the Union industry’s market share in the free market decreased by 16 % as, at the same time, imports increased exponentially, i.e. in absolute terms their increase was twice as high as the increase of consumption.
Table 9
Captive volumes and market share
| 2019 | 2020 | 2021 | RIP | |
| Captive market (tonnes) | 1 864 394 | 1 764 931 | 2 091 845 | 1 916 305 |
| Index (2019 = 100) | 100 | 95 | 112 | 103 |
| Share of captive market over the total Union production (%) | 20,2 % | 19,8 % | 23,3 % | 24,7 % |
| Index (2019 = 100) | 100 | 98 | 115 | 122 |
| Source: Eurofer and sampled Union producers. | Source: Eurofer and sampled Union producers. | Source: Eurofer and sampled Union producers. | Source: Eurofer and sampled Union producers. | Source: Eurofer and sampled Union producers. |
- (164) The Union industry’s captive volume was relatively stable and experienced an overall increase by 3 %.
- (165) The drop in Union production entailed an increase of the share of the captive market over the total Union production.
4.5.2.3. Growth
- (166) The Union industry managed to partly benefit from periods of growth on the Union market even if its capacity utilisation was lower than during the original investigation and some restructuring was on-going. The Union industry kept significant market shares during the whole period considered.
4.5.2.4. Employment and productivity
- (167) Employment and productivity developed over the period considered as follows:
Table 10
Employment and productivity
| 2019 | 2020 | 2021 | RIP | |
| Number of employees | 11 117 | 12 048 | 10 385 | 9 593 |
| Index (2019 = 100) | 100 | 108 | 93 | 86 |
| Productivity (tonnes/employee) | 828 | 739 | 866 | 807 |
| Index (2019 = 100) | 100 | 89 | 105 | 97 |
| Source: Eurofer and sampled Union producers. | Source: Eurofer and sampled Union producers. | Source: Eurofer and sampled Union producers. | Source: Eurofer and sampled Union producers. | Source: Eurofer and sampled Union producers. |
- (168) Over the period considered, the level of Union industry employment related to the production of the product under review fluctuated and fell by 14 %. The drop in the last part of the period considered is to be attributed to the developments at one large producer as mentioned in recital 159 above. Also, some fluctuations are theoretical as they are the result of different production models and of different allocation methodologies of resources which starting point was a product family broader than the product under review (namely all hot dipped galvanised products).
- (169) The productivity of the Union industry decreased by 3 % over the period concerned. The fluctuations are linked to the drop in production volumes in the Union in 2020 and the review investigation period.
4.5.2.5. Magnitude of the dumping margin and recovery from past dumping
- (170) The level of imports during the review investigation period was very limited, representing a negligible share of Union consumption. Therefore, the impact of the magnitude of actual margins of dumping on the Union industry could not be meaningfully established. The review focused on the likelihood of a recurrence of dumping should the anti-dumping measures be repealed. However, as mentioned in recital 128, the difference between the normal value and the export price to third countries was at a significant level.
- (171) Corrosion resistant steels have already been subject to anti-dumping investigations. In the original investigation, the Commission found that, during the period 1 October 2015 to 30 September 2016, the situation of the Union industry was significantly affected by dumped imports of the product under review originating in the PRC. In August 2020, an anti-circumvention investigation of the anti-dumping measures of imports originating in the PRC extended the measures in question to slightly modified certain corrosion resistant steels 95. In an investigation concerning, inter alia, the product under review, the Commission found that, during the period 1 January 2020 to 30 December 2020, the situation of the Union industry was negatively affected by dumped imports originating in Russia and Türkiye 96.
- (172) The recovery of the Union industry from past dumping practices was thus ongoing when the present investigation started. However, the measures in place had undeniably a positive impact on the Union industry.
4.5.3. Microeconomic indicators
4.5.3.1. Prices and factors affecting prices
- (173) The weighted average unit sales prices of the sampled Union producers to unrelated customers in the Union developed over the period considered as follows:
Table 11
Sales prices and cost of production in the Union (EUR/tonne)
| 2019 | 2020 | 2021 | RIP | |
| Average unit sales price on the free market | 628 | 587 | 1 039 | 1 162 |
| Index (2019 = 100) | 100 | 93 | 165 | 185 |
| Unit cost of production | 601 | 588 | 789 | 986 |
| Index (2019 = 100) | 100 | 98 | 131 | 164 |
| Source: Sampled Union producers. | Source: Sampled Union producers. | Source: Sampled Union producers. | Source: Sampled Union producers. | Source: Sampled Union producers. |
- (174) The Union producers could increase their sales prices in the Union following relevant trade defence measures put in place.
- (175) The unit cost of production increased overall by 64 % over the period considered. The prices of some main raw materials and energy increased significantly in the second half of the period considered.
4.5.3.2. Labour costs
- (176) The average labour costs of the sampled Union producers developed over the period considered as follows:
Table 12
Average labour costs per employee
| 2019 | 2020 | 2021 | RIP | |
| Average labour costs per employee (EUR) | 72 692 | 68 225 | 77 162 | 81 837 |
| Index (2019 = 100) | 100 | 94 | 106 | 113 |
| Source: Sampled Union producers. | Source: Sampled Union producers. | Source: Sampled Union producers. | Source: Sampled Union producers. | Source: Sampled Union producers. |
- (177) The average labour costs per employee of the sampled Union producers increased by 13 % during the period considered. They dropped temporarily in 2020 due to COVID-19-related public support measures.
4.5.3.3. Inventories
- (178) Stock levels of the sampled Union producers developed over the period considered as follows:
Table 13
Inventories
| 2019 | 2020 | 2021 | RIP | |
| Closing stocks (tonnes) | 154 680 | 111 817 | 171 244 | 160 558 |
| Index (2019 = 100) | 100 | 72 | 111 | 104 |
| Closing stocks as a percentage of production | 7,6 % | 5,3 % | 7,2 % | 7,6 % |
| Index (2019 = 100) | 100 | 70 | 96 | 100 |
| Source: Sampled Union producers. | Source: Sampled Union producers. | Source: Sampled Union producers. | Source: Sampled Union producers. | Source: Sampled Union producers. |
- (179) Union producers usually keep a low level of stock themselves. Therefore, stocks are not considered to be an important injury indicator for this industry. This is also confirmed by analysing the evolution of the closing stocks as a percentage of production.
4.5.3.4. Profitability, cash flow, investments, return on investments and ability to raise capital
- (180) Profitability, cash flow, investments and return on investments of the sampled Union producers developed over the period considered as follows:
Table 14
Profitability, cash flow, investments and return on investments
| 2019 | 2020 | 2021 | RIP | |
| Profitability of sales in the Union to unrelated customers (% of sales turnover) | –3,7 % | –1,7 % | 16,1 % | 7,9 % |
| Index (2019 = 100) | - 100 | -46 | 435 | 214 |
| Cash flow (EUR) | -26 986 371 | 43 439 334 | 269 485 933 | 189 860 405 |
| Index (2019 = 100) | - 100 | 161 | 999 | 704 |
| Investments (EUR) | 27 483 583 | 30 820 545 | 25 152 956 | 35 339 227 |
| Index (2019 = 100) | 100 | 112 | 92 | 129 |
| Return on investments | -6 % | -3 % | 33 % | 22 % |
| Index (2019 = 100) | - 100 | -50 | 550 | 367 |
| Source: Sampled Union producers. | Source: Sampled Union producers. | Source: Sampled Union producers. | Source: Sampled Union producers. | Source: Sampled Union producers. |
- (181) The Commission established the profitability of the sampled Union producers by expressing the pre-tax net profit of the sales of the like product to unrelated customers in the Union as a percentage of the turnover of those sales. Dumped imports from several countries contributed to the Union industry making losses in 2019 and 2020. The trade defence measures put in place thereafter helped Union producers to increase their sale prices to a higher extent than the increase of its cost of production and obtain sustainable profit levels. In the review investigation period profits dropped significantly as compared to 2021 as sales prices could not anymore incorporate the further strong increase in cost of production. The profitability achieved both in 2021 and 2022 was, however, above the target profit established in earlier investigations covering the same and a slightly broader product range 97.
- (182) The net cash flow is the ability of the Union producers to self-finance their activities. The trend in net cash flow followed the positive developments in terms of profitability.
- (183) Investments are the net book value of assets. The net investments overall increased over the period considered. In general, the investments aimed at retaining the existing capacities, at improving quality, at reducing costs and at saving energy.
- (184) The return on investments is the profit in percentage of the net book value of investments. It developed very positively in a context of significant profits but limited investments.
- (185) The ability to raise capital was not directly affected by imports from the PRC.
4.6. Conclusion on injury
- (186) The evolution of the micro and macro indicators during the period considered showed that the financial situation for the Union industry was good in 2021 and the review investigation period, with profitability in both years exceeding target profits for the industry previously established.
- (187) Certain volume-based indicators as well as employment deteriorated, but that could for a good part or completely be attributed to particular difficulties encountered by one large Union producer that virtually stopped production during 2021. All other Union producers together would show a picture of a Union industry that is hardly, if at all, affected by the significant drop in consumption in the review investigation period and strong increase of imports over the period considered.
- (188) On the basis of the above, the Commission concluded that the Union industry did not suffer material injury within the meaning of Article 3(5) of the basic Regulation during the review investigation period.
5. LIKELIHOOD OF RECURRENCE OF INJURY
- (189) The Commission concluded in the above section that the Union industry did not suffer material injury during the review investigation period. Therefore, the Commission assessed, in accordance with Article 11(2) of the basic Regulation, whether there would be a likelihood of recurrence of injury originally caused by the dumped imports from the PRC if the measures were allowed to lapse.
- (190) In this regard, the Commission relied on the information made available by the cooperating parties and any other information available on file. It examined the production capacity and spare capacity in the PRC; the relationship between prices in the Union, the PRC and Chinese export prices to third countries; the likely price and volume levels of imports from the PRC in the absence of anti-dumping measures; and the impact on the Union industry should the measures be allowed to lapse.
- (191) As concluded in recital 123, the estimated Chinese CRS spare capacity represents over 80 % of the free consumption of CRS in the Union market during the review investigation period, but that percentage could increase in light of the utilisation rate of Chinese corrosion resistant plants which is forecasted to be 86,2 % in 2023 98. Moreover, as concluded in recital 127, prices in the Union are higher than to nine of the ten largest current export destinations of Chinese CRS.
- (192) Based on that, the expiry of the anti-dumping measures is very likely to result in an increase of Chinese exports to the Union. In view of the decreasing domestic demand in China, the fact that producers of CRS can easily switch from the production of other HDG products to CRS and the higher prices on the Union market (see recitals 123 and 122), such increase could be even larger than the current Chinese spare capacity which would already represent 80 % of Union consumption.
- (193) Furthermore, as explained in recital 127, the Commission compared the prices of imports with Union industry prices on the basis of current export prices of Chinese exporting producers to third countries. The prices to the main export destinations with representative sales mentioned in recital 126 were adjusted by first deducting the cost or transport from the PRC to the third countries and thereafter adding the costs for transport from the PRC to the Union, using cost data of ocean freight from the review request. Using those calculated CIF prices and comparing them with the weighted average sales prices of the three sampled Union producers charged to unrelated customers in the Union market, adjusted to an ex-works level, prices of Chinese exports to third countries undercut Union industry’s average sales prices, properly adjusted to ex-works level, by 6,8 %. The request also contained information showing that China exported increasing volumes to countries outside the Union at low prices 99.
- (194) Moreover, as important as export markets are for Chinese industry, the PRC faces more and more difficulties accessing them due to a wide range measures imposed by other third countries against imports of certain corrosion resistant steels from China, as described in section 3 above.
- (195) The market for the product under review is very price competitive. Therefore, the likely arrival into the Union of imports from the country concerned at low prices would force the Union industry to reduce its production and lower its prices. Union producers would be confronted with insufficient time to recover from the past injurious situation, further invest and fulfil their commitments, including social and environmental ones.
- (196) Profit levels are likely to become unsustainable for such a capital-intensive industry. Heavy losses within the Union industry will undermine its ability to raise capital, endanger its viability and possibly trigger the closure of production facilities and dismissals and also disruptions in supply chains.
- (197) There are steel safeguard measures in place that Union producers benefit from already. However, the current anti-dumping investigation addresses a distinct issue not covered by any existing measure.
- (198) On this basis, it is concluded that the absence of measures would in all likelihood result in a significant increase of dumped imports from the PRC at injurious prices and material injury would be likely to recur.
6. UNION INTEREST
- (199) In accordance with Article 21 of the basic Regulation, the Commission examined whether maintaining the existing anti-dumping measures would be against the interest of the Union as whole. The determination of the Union interest was based on an appreciation of all the various interests involved, including those of the Union industry, importers and users.
6.1. Interest of the Union industry
- (200) The majority of the 21 Union producers supported the request whereas no producer opposed the initiation of the investigation. As concluded in section 4 above, the Union industry is no longer suffering from material injury. However, as concluded in section 5, a repeal of the measures would result of a renewed influx of dumped imports from China which would quickly result in a recurrence of injury. The continuation of the measures, therefore, is in the interest of the Union industry.
6.2. Interest of unrelated importers
- (201) No importers cooperated with the investigation.
- (202) The lack of cooperation of importers did not allow the Commission to analyse whether importers were performing badly or unable to pass on price increases, if any.
- (203) The Commission notes that, apart from the abundant Union production, importers and supply chains can avail themselves from imports from numerous suppliers and countries. The extension of the measures is not intended to exclude Chinese imports from the market, but only to ensure that those imports are not sold at dumped prices, thereby causing injury.
6.3. Interest of users
- (204) Users did not cooperate with the investigation. Therefore, the Commission was not in a position to analyse the impact of existing measures on the situation of users.
- (205) The Commission notes that, in the course of its original investigation, the Commission concluded that the measures currently in place do not have significant negative effects on users and consumers. Indeed, certain corrosion resistant steels generally represent a relatively low proportion of the cost of a construction project (only approximately one percent for a brick house and two percent for an office building), as noted in an example provided in Annex 13 to the request.
6.4. Conclusion on Union interest
- (206) On the basis of the above, the Commission concluded that there were no compelling reasons of the Union interest against the maintenance of the existing measures on imports of certain corrosion resistant steels originating in the PRC.
7. ANTI-DUMPING MEASURES
- (207) On the basis of the conclusions reached by the Commission on likelihood of recurrence of dumping, likelihood of recurrence of injury and Union interest, the anti-dumping measures on certain corrosion resistant steels from the PRC should be maintained.
- (208) The individual company anti-dumping duty rates specified in this Regulation are exclusively applicable to imports of the product under review originating in the country concerned and produced by the named legal entities. Imports of the product under review produced by any other company not specifically mentioned in the operative part of this Regulation, including entities related to those specifically mentioned, should be subject to the duty rate applicable to ‘all other imports originating in the People’s Republic of China’. They should not be subject to any of the individual anti-dumping duty rates.
- (209) A company may request the application of these individual anti-dumping duty rates if it changes subsequently the name of its entity. The request must be addressed to the Commission 100. The request must contain all the relevant information enabling to demonstrate that the change does not affect the right of the company to benefit from the duty rate which applies to it. If the change of name of the company does not affect its right to benefit from the duty rate which applies to it, a regulation about the change of name will be published in the Official Journal of the European Union.
- (210) To minimize the risks of circumvention due to the difference in duty rates, special measures are needed to ensure the application of the individual anti-dumping duties. The companies with individual anti-dumping duties must present a valid commercial invoice to the customs authorities of the Member States. The invoice must conform to the requirements set out in Article 1(3) of this regulation. Imports not accompanied by that invoice should be subject to the anti-dumping duty applicable to ‘All other imports originating in the People’s Republic of China’.
- (211) While presentation of this invoice is necessary for the customs authorities of the Member States to apply the individual rates of anti-dumping duty to imports, it is not the only element to be taken into account by the customs authorities. Indeed, even if presented with an invoice meeting all the requirements set out in Article 1(3) of this regulation, the customs authorities of Member States must carry out their usual checks and may, like in all other cases, require additional documents (shipping documents, etc.) for the purpose of verifying the accuracy of the particulars contained in the declaration and ensure that the subsequent application of the lower rate of duty is justified, in compliance with customs law.
- (212) Should the exports by one of the companies benefiting from lower individual duty rates increase significantly in volume after the imposition of the measures concerned, such an increase in volume could be considered as constituting in itself a change in the pattern of trade due to the imposition of measures within the meaning of Article 13(1) of the basic Regulation. In such circumstances and provided the conditions are met an anti-circumvention investigation may be initiated. This investigation may, inter alia, examine the need for the removal of individual duty rate(s) and the consequent imposition of a country-wide duty.
- (213) An exporter or producer that did not export the product concerned to the Union during the period that was used to set the level of the duty currently applicable to its exports may request the Commission to be made subject to the anti-dumping duty rate for cooperating companies not included in the sample. The Commission should grant such request, provided that three conditions are met. The new exporting producer would have to demonstrate that: (i) it did not export the product concerned to the Union during the period that was used to set the level of the duty applicable to its exports; (ii) it is not related to a company that did so and thus is subject to the anti-dumping duties; and (iii) has exported the product concerned thereafter or has entered into an irrevocable contractual obligation to do so in substantial quantities.
- (214) All interested parties were informed of the essential facts and considerations on the basis of which it was intended to recommend that the existing measures be maintained. They were also granted a period to make representations subsequent to this disclosure. No comments were received.
- (215) In view of Article 109 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council 101 when an amount is to be reimbursed following a judgment of the Court of Justice of the European Union, the interest to be paid should be the rate applied by the European Central Bank to its principal refinancing operations, as published in the C series of the Official Journal of the European Union on the first calendar day of each month.
- (216) By Commission Implementing Regulation (EU) 2019/159 102, the Commission imposed a safeguard measure with respect to certain steel products for a period of three years. By Commission Implementing Regulation (EU) 2021/1029 103, the safeguard measure was prolonged until 30 June 2024. The product concerned is one of the product categories covered by the safeguard measure. Consequently, once the tariff quotas established under the safeguard measure are exceeded, both the above-quota tariff duty and the anti-dumping duty would become payable on the same imports. As such cumulation of anti-dumping measures with safeguard measures may lead to an effect on trade greater than desirable, the Commission decided to prevent the concurrent application of the anti-dumping duty with the above-quota tariff duty for the product concerned for the duration of the imposition of the safeguard duty.
- (217) This means that where the above-quota tariff duty referred to in Article 1(6) of Regulation (EU) 2019/159 becomes applicable to the product concerned and exceeds the level of the anti-dumping duties pursuant to this Regulation, only the above-quota tariff duty referred to in Article 1(6) of Regulation (EU) 2019/159 shall be collected. During the period of concurrent application of the safeguard and anti-dumping duties, the collection of the duties imposed pursuant to this Regulation shall be suspended. Where the above-quota tariff duty referred to in Article 1(6) of Regulation (EU) 2019/159 becomes applicable to the product concerned and is set at a level lower than the level of the anti-dumping duties in this Regulation, the above-quota tariff duty referred to in Article 1(6) of Regulation (EU) 2019/159 shall be collected in addition to the difference between that duty and the higher anti-dumping duties imposed pursuant to this Regulation. The part of the amount of anti-dumping duties not collected shall be suspended.
- (218) The measures provided for in this regulation are in accordance with the opinion of the Committee established by Article 15(1) of the basic Regulation,
HAS ADOPTED THIS REGULATION:
Article 1
A definitive anti-dumping duty is imposed on imports of flat-rolled products of iron or alloy steel or non-alloy steel; aluminium killed; plated or coated by hot dip galvanisation with zinc and/or with aluminium, and no other metal; chemically passivated; containing by weight: 0,015 % or more but not more than 0,170 % of carbon, 0,015 % or more but not more than 0,100 % of aluminium, not more than 0,045 % of niobium, not more than 0,010 % of titanium and not more than 0,010 % of vanadium; presented in coils, cut-to-length sheets and narrow strips.
The following products are excluded:
- — of stainless steel, of silicon-electrical steel, and of high-speed steel,
- — not further worked than hot-rolled or cold-rolled (cold-reduced).
The product concerned is currently falling under CN codes ex 7210 41 00, ex 7210 49 00, ex 7210 61 00, ex 7210 69 00, ex 7212 30 00, ex 7212 50 61, ex 7212 50 69, ex 7225 92 00, ex 7225 99 00, ex 7226 99 30 and ex 7226 99 70 (TARIC codes: 7210410020, 7210490020, 7210610020, 7210690020, 7212300020, 7212506120, 7212506920, 7225920020, 7225990022, 7225990092, 7226993010, 7226997094) and originating in the People’s Republic of China.
The rate of the definitive anti-dumping duty applicable to the net, free-at-Union-frontier price before duty, of the product described in paragraph 1 and manufactured by the companies listed below shall be as follows:
| Company | Definitive duty rate (%) | TARIC Additional Code |
|---|---|---|
| Hesteel Co., Ltd Handan Branch | 27,8 | C227 |
| Handan Iron & Steel Group Han-Bao Co., Ltd | 27,8 | C158 |
| Hesteel Co., Ltd Tangshan Branch | 27,8 | C159 |
| Tangshan Iron & Steel Group High Strength Automotive Strip Co., Ltd | 27,8 | C228 |
| Beijing Shougang Cold Rolling Co., Ltd | 17,2 | C229 |
| Shougang Jingtang United Iron and Steel Co., Ltd | 17,2 | C164 |
| Zhangjiagang Shagang Dongshin Galvanized Steel Sheet Co., Ltd | 27,9 | C230 |
| Zhangjiagang Yangtze River Cold Rolled Sheet Co., Ltd | 27,9 | C112 |
| Other cooperating companies listed in the Annex | 26,1 | See Annex |
| All other imports originating in the People’s Republic of China | 27,9 | C999 |
The definitive anti-dumping duty applicable to imports originating in the People’s Republic of China, as set out in paragraph 2, is hereby extended to imports of flat-rolled products of iron or alloy steel or non-alloy steel; plated or coated by hot dip galvanisation with zinc and/or aluminium and/or magnesium, whether or not alloyed with silicon; chemically passivated; with or without any additional surface treatment such as oiling or sealing; containing by weight: not more than 0,5 % of carbon, not more than 1,1 % of aluminium, not more than 0,12 % of niobium, not more than 0,17 % of titanium and not more than 0,15 % of vanadium; presented in coils, cut-to-length sheets and narrow strips.
The following products are excluded:
- — of stainless steel, of silicon-electrical steel, and of high-speed steel,
- — not further worked than hot-rolled or cold-rolled (cold-reduced),
- — the product concerned as defined in the beginning of this article,
currently falling under CN codes ex 7210 41 00, ex 7210 49 00, ex 7210 61 00, ex 7210 69 00, ex 7210 90 80, ex 7212 30 00, ex 7212 50 61, ex 7212 50 69, ex 7212 50 90, ex 7225 92 00, ex 7225 99 00, ex 7226 99 30, ex 7226 99 70 (TARIC codes: 7210410030, 7210490030, 7210610030, 7210690030, 7210908092, 7212300030, 7212506130, 7212506930, 7212509014, 7212509092, 7225920030, 7225990023, 7225990041, 7225990093, 7226993030, 7226997013, 7226997093), originating in the People’s Republic of China.
This extension does not apply to imports referred to in paragraph 1 of this Article produced by the companies listed below:
| Company name | TARIC additional code |
|---|---|
| Beijing Shougang Cold Rolling Co., Ltd | C229 |
| Shougang Jingtang United Iron and Steel Co., Ltd | C164 |
The application of exemptions granted to the companies specifically mentioned in paragraph 4 of this Article shall be conditional upon presentation to the customs authorities of the Member States of a valid commercial invoice issued by the producer on which shall appear a declaration dated and signed by an official of the entity issuing such invoice, identified by his/her name and function. This declaration shall be drafted as follows: ‘I, the undersigned, certify that the (volume) of certain corrosion resistant steels sold for export to the European Union covered by this invoice was manufactured by (company name and address) (TARIC additional code) in (country concerned). I declare that the information provided in this invoice is complete and correct.’ If no such invoice is presented, the anti-dumping duty as imposed by paragraph 3 of this Article shall apply.
The application of the individual anti-dumping duty rates specified for the companies mentioned in paragraph 2 shall be conditional upon presentation to the customs authorities of the Member States of a valid commercial invoice, on which shall appear a declaration dated and signed by an official of the entity issuing such invoice, identified by his/her name and function, drafted as follows: ‘I, the undersigned, certify that the (volume) of corrosion resistant steels sold for export to the European Union covered by this invoice was manufactured by (company name and address) (TARIC additional code) in the People’s Republic of China. I declare that the information provided in this invoice is complete and correct.’ If no such invoice is presented, the duty rate applicable to ‘all other imports originating in the People’s Republic of China’ shall apply.
Where any new exporting producer in the People’s Republic of China provides sufficient evidence to the Commission that:
- (a) it did not export to the Union the product described in paragraph 1 in the period between 1 October 2015 and 30 September 2016 (investigation period of the original investigation); (b) it is not related to any exporter or producer in the People’s Republic of China which is subject to the anti-dumping measures imposed by this Regulation; (c) it has actually exported to the Union the product concerned or it has entered into an irrevocable contractual obligation to export a significant quantity to the Union after the end of the original investigation period, the Commission may amend the Annex by adding the new exporting producer to the cooperating companies not included in the sample and thus subject to the weighted average duty of not exceeding 26,1 %.
Unless otherwise specified, the provisions in force concerning customs duties shall apply.
Article 2
Where the above-quota tariff duty referred to in Article 1(6) of Regulation (EU) 2019/159 becomes applicable to flat-rolled products of iron or alloy steel or non-alloy steel; plated or coated by hot dip galvanisation with zinc and/or aluminium and/or magnesium, whether or not alloyed with silicon; chemically passivated; with or without any additional surface treatment such as oiling or sealing; containing by weight: not more than 0,5 % of carbon, not more than 1,1 % of aluminium, not more than 0,12 % of niobium, not more than 0,17 % of titanium and not more than 0,15 % of vanadium; presented in coils, cut-to-length sheets and narrow strips, referred to in Article 1(3), and exceeds the level of the anti-dumping duty set out in Article 1(2), only the above-quota tariff duty referred to in Article 1(6) of Regulation (EU) 2019/159 shall be collected.
During the period of application of paragraph 1, the collection of the duties imposed pursuant to this Regulation shall be suspended.
Where the above-quota tariff duty referred to in Article 1(6) of Regulation (EU) 2019/159 becomes applicable to flat-rolled products of iron or alloy steel or non-alloy steel; plated or coated by hot dip galvanisation with zinc and/or aluminium and/or magnesium, whether or not alloyed with silicon; chemically passivated; with or without any additional surface treatment such as oiling or sealing; containing by weight: not more than 0,5 % of carbon, not more than 1,1 % of aluminium, not more than 0,12 % of niobium, not more than 0,17 % of titanium and not more than 0,15 % of vanadium; presented in coils, cut-to-length sheets and narrow strips, referred to in Article 1(3), and is set at a level lower than the anti-dumping duty set out in Article 1(2), the above-quota tariff duty referred to in Article 1(6) of Regulation (EU) 2019/159 shall be collected in addition to the difference between that duty and the higher anti-dumping duty set out in Article 1(2).
The part of the amount of anti-dumping duty not collected pursuant to paragraph 3 shall be suspended.
The suspensions referred to in paragraphs 2 and 4 shall be limited in time to the period of application of the above quota tariff duty referred to in Article 1(6) of Regulation (EU) 2019/159.
Article 3
This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 8 March 2024.
For the Commission
The President
Ursula VON DER LEYEN
Commission Implementing Regulation (EU) 2018/186 of 7 February 2018 imposing a definitive anti-dumping duty and collecting definitively the provisional duty imposed on imports of certain corrosion resistant steels originating in the People’s Republic of China (OJ L 34, 8.2.2018, p. 16).
Commission Implementing Regulation (EU) 2020/1156 of 4 August 2020 extending the definitive anti-dumping duty imposed by Implementing Regulation (EU) 2018/186 on imports of certain corrosion resistant steels originating in the People’s Republic of China to imports of slightly modified certain corrosion resistant steels (OJ L 255, 5.8.2020, p. 36).
Commission Implementing Regulation (EU) 2020/1994 of 4 December 2020 correcting Implementing Regulation (EU) 2020/1156 extending the definitive anti-dumping duty imposed by Implementing Regulation (EU) 2018/186 on imports of certain corrosion resistant steels originating in the People’s Republic of China to imports of slightly modified certain corrosion resistant steels (OJ L 410, 7.12.2020, p. 67).
Notice of initiation of an expiry review of the anti-dumping measures applicable to imports of certain corrosion resistant steels originating in People’s Republic of China (OJ C 48, 8.2.2023, p. 32).
Note to the file t23.000939 of 17 February 2023.
Questionnaires for Union producers, exporting producers, importers and users were available at https://tron.trade.ec.europa.eu/investigations/case-view?caseId=2653.
Commission Implementing Regulation (EU) 2022/2068 of 26 October 2022 imposing a definitive anti-dumping duty on imports of certain cold-rolled flat steel products originating in the People’s Republic of China and the Russian Federation following an expiry review pursuant to Article 11(2) of Regulation (EU) 2016/1036 of the European Parliament and of the Council (OJ L 277, 27.10.2022, p. 149); Commission Implementing Regulation (EU) 2022/191 of 16 February 2022 imposing a definitive anti-dumping duty on imports of certain iron or steel fasteners originating in the People’s Republic of China (OJ L 36, 17.2.2022, p. 1); Commission Implementing Regulation (EU) 2022/95 of 24 January 2022 imposing a definitive anti-dumping duty on imports of certain tube and pipe fittings, of iron or steel, originating in the People’s Republic of China, as extended to imports of certain tube and pipe fittings, of iron or steel consigned from Taiwan, Indonesia, Sri Lanka and the Philippines, whether declared as originating in these countries or not, following an expiry review pursuant to Article 11(2) of Regulation (EU) 2016/1036 of the European Parliament and of the Council (OJ L 16, 25.1.2022, p. 36); Commission Implementing Regulation (EU) 2021/2239 of 15 December 2021 imposing a definitive anti-dumping duty on imports of certain utility scale steel wind towers originating in the People’s Republic of China (OJ L 450, 16.12.2021, p. 59); Commission Implementing Regulation (EU) 2021/635 of 16 April 2021 imposing a definitive anti-dumping duty on imports of certain welded pipes and tubes of iron or non-alloyed steel originating in Belarus, the People’s Republic of China and Russia following an expiry review pursuant to Article 11(2) of Regulation (EU) 2016/1036 of the European Parliament and of the Council (OJ L 132, 19.4.2021, p. 145).
See Implementing Regulation (EU) 2022/2068 recital 80; Implementing Regulation (EU) 2022/191 recital 208, Implementing Regulation (EU) 2022/95 recital 59, Implementing Regulation (EU) 2021/2239 recitals 67-74, Implementing Regulation (EU) 2021/635 recitals 149-150.
See Implementing Regulation (EU) 2022/2068 recital 64; Implementing Regulation (EU) 2022/191 recital 192, Implementing Regulation (EU) 2022/95 recital 46, Implementing Regulation (EU) 2021/2239 recitals 67-74, Implementing Regulation (EU) 2021/635 recitals 115-118.
See Implementing Regulation (EU) 2022/2068 recital 66; Implementing Regulation (EU) 2022/191 recitals 193-4, Implementing Regulation (EU) 2022/95 recital 47, Implementing Regulation (EU) 2021/2239 recitals 67-74, Implementing Regulation (EU) 2021/635 recitals 119-122. While the right to appoint and to remove key management personnel in SOEs by the relevant State authorities, as provided for in the Chinese legislation, can be considered to reflect the corresponding ownership rights, CCP cells in enterprises, state owned and private alike, represent another important channel through which the State can interfere with business decisions. According to the PRC’s company law, a CCP organisation is to be established in every company (with at least three CCP members as specified in the CCP Constitution) and the company shall provide the necessary conditions for the activities of the party organisation. In the past, this requirement appears not to have always been followed or strictly enforced. However, since at least 2016 the CCP has reinforced its claims to control business decisions in SOEs as a matter of political principle. The CCP is also reported to exercise pressure on private companies to put ‘patriotism’ first and to follow party discipline. In 2017, it was reported that party cells existed in 70 % of some 1,86 million privately owned companies, with growing pressure for the CCP organisations to have a final say over the business decisions within their respective companies. These rules are of general application throughout the Chinese economy, across all sectors, including to the producers of the product under review and the suppliers of their inputs.
See Implementing Regulation (EU) 2022/2068 recital 68; Implementing Regulation (EU) 2022/191 recitals 195-201, Implementing Regulation (EU) 2022/95 recitals 48-52, Implementing Regulation (EU) 2021/2239 recitals 67-74, Implementing Regulation (EU) 2021/635 recitals 123-129.
See Implementing Regulation (EU) 2022/2068 recital 74; Implementing Regulation (EU) 2022/191 recital 202, Implementing Regulation (EU) 2022/95 recital 53, Implementing Regulation (EU) 2021/2239 recitals 67-74, Implementing Regulation (EU) 2021/635 recitals 130-133.
See Implementing Regulation (EU) 2022/2068 recital 75; Implementing Regulation (EU) 2022/191 recital 203, Implementing Regulation (EU) 2022/95 recital 54, Implementing Regulation (EU) 2021/2239 recitals 67-74, Implementing Regulation (EU) 2021/635 recitals 134-135.
See Implementing Regulation (EU) 2022/2068 recital 76; Implementing Regulation (EU) 2022/191 recital 204, Implementing Regulation (EU) 2022/95 recital 55, Implementing Regulation (EU) 2021/2239 recitals 67-74, Implementing Regulation (EU) 2021/635 recitals 136-145.
Commission staff working document SWD(2017) 483 final/2, 20. 12. 2017, available at: https://trade.ec.europa.eu/doclib/docs/2017/december/tradoc_156474.pdf
OECD, State-owned Firms behind China’s Corporate Debt, Economics Department Working Papers No 1536, February 2019.
https://www.oecdilibrary.org/docserver/7c66570een.pdf?expires=1634897777&id=id&accname=guest&checksum=3095BC87BC68666578D757C403B87307
Commission Implementing Regulation (EU) 2017/969 of 8 June 2017 imposing definitive countervailing duties on imports of certain hot-rolled flat products of iron, non-alloy or other alloy steel originating in the People’s Republic of China and amending Commission Implementing Regulation (EU) 2017/649 imposing a definitive anti-dumping duty on imports of certain hot-rolled flat products of iron, non-alloy or other alloy steel originating in the People’s Republic of China (OJ L 146, 9.6.2017, p. 17).
See: http://wap.sasac.gov.cn/n2588045/n27271785/n27271792/c14159097/content.html (accessed on 13 September 2023).
See: www.cqgt.cn (accessed on 13 September 2023).
See: https://www.magang.com.cn/ (accessed on 13 September 2023).
See: https://www.qixin.com/company/ab02483a-5ed7-49fe-b6e6-8ea39dc4dc80 (accessed on 13 September 2023).
See: http://www.ansteel.cn/about/company_profile/ (accessed on 13 September 2023).
See: https://www.qcc.com/firm/d620835aaae14e62fdc965fd41a51d8d.html (accessed on 13 September 2023).
See: https://www.gov.cn/zhengce/zhengceku/2022-02/08/content_5672513.htm (accessed on 13 September 2023).
See Section IV, Subsection 3 of the 14th FYP on Developing the Raw Materials Industry.
See Section II, Subsection 1 of the 14th FYP on Developing Scrap Steel Industry.
See: https://www.miit.gov.cn/zwgk/zcwj/wjfb/tz/art/2023/art_2a4233d696984ab59610e7498e333920.html (accessed on 13 September 2023).
See the Hebei Province’s Three Year Action Plan on Cluster Development in the Steel Industry Chain, Chapter I, Section 3; available at: https://huanbao.bjx.com.cn/news/20200717/1089773.shtml (accessed on 13 September 2023).
See the Henan Implementation Plan for the Transformation and Upgrade of the Steel Industry during the 14th FYP, Chapter II, Section 3; available at: https://huanbao.bjx.com.cn/news/20211210/1192881.shtml (accessed on 13 September 2023).
Jiangsu Province’s Work Plan Steel Sector Transformation and Upgrade and Layout Optimisation 2019-2025; available at: http://www.jiangsu.gov.cn/art/2019/5/5/art_46144_8322422.html (accessed on 13 September 2023).
Shandong Province’s 14 FYP on the Steel Industry Development; available at: http://gxt.shandong.gov.cn/art/2021/11/18/art_15681_10296246.html (accessed on 13 September 2023).
Shanxi Province’s 2020 Steel Industry Transformation and Upgrade Action Plan; available at: http://gxt.shanxi.gov.cn/zfxxgk/zfxxgkml/cl/202110/t20211018_2708031.shtml (accessed on 13 September 2023).
Liaoning Dalian Municipality’s 14 FYP on Developing Manufacturing Industry: ‘By 2025, the industrial ouput value of new materials will reach 15 million yuan, and the level of equipment and key materials guarantee ability is obviously improved’; available at: https://www.dl.gov.cn/art/2021/12/20/art_854_1995411.html (accessed on 5 December 2022).
Zhejiang Province’s Action Plan to Foster a High Quality Development of the Steel Industry: ‘Foster enterprise mergers and reorganisation, accelerate the concentration process, reduce the number of steel smelting enterprises to approximately 10 enterprises’; available at: https://www.dl.gov.cn/art/2021/12/20/art_854_1995411.html (accessed on 5 December 2022).
See: https://www.baoganggf.com/ggry (accessed on 13 September 2023).
See: https://www.shougang.com.cn/sgweb/html/gsld.html (accessed on 13 September 2023).
Report, Part III, Chapter 14, p. 346 ff.
See People’s Republic of China 14th Five-Year Plan for National Economic and Social Development and Long-Range Objectives for 2035, Part III, Article VIII, available at: https://cset.georgetown.edu/publication/china-14th-five-year-plan/ (accessed 13 September 2023).
See in particular Sections I and II of the 14th FYP on Developing the Raw Materials Industry.
See: https://www.miit.gov.cn/zwgk/zcwj/wjfb/tz/art/2023/art_2a4233d696984ab59610e7498e333920.html (accessed on 13 September 2023).
See the 14th FYP on Developing the Raw Materials Industry, p. 22.
See the Hebei Tangshan Municipality Iron and Steel 1 + 3 Action Plan 2022, Chapter 4, Section 2; available at: http://www.chinaisa.org.cn/gxportal/xfgl/portal/content.html?articleId=e2bb5519aa49b566863081d57aea9dfdd59e1a4f482bb7acd243e3ae7657c70b&columnId=3683d857cc4577e4cb75f76522b7b82cda039ef70be46ee37f9385ed3198f68a (accessed at 13 September 2023)
See Implementing Regulation (EU) 2021/635, recitals 134-135 and Commission Implementing Regulation (EU) 2020/508 of 7 April 2020 imposing a provisional anti-dumping duty on imports of certain hot rolled stainless steel sheets and coils originating in Indonesia, the People’s Republic of China and Taiwan (OJ L 110, 8.4.2020, p. 3), recitals 143-144.
World Bank Open Data – Upper Middle Income, https://data.worldbank.org/income-level/upper-middle-income.
If there is no production of the product under review in any country with a similar level of development, production of a product in the same general category and/or sector of the product under review may be considered.
https://www.doingbusiness.org/content/dam/doingBusiness/country/m/mexico/MEX.pdf
Available at https://connect.ihsmarkit.com/gta/home
https://www.cre.gob.mx/IPGN/ (last viewed: 24 May 2023).
https://www.globalpetrolprices.com/Mexico/electricity_prices/
https://ilostat.ilo.org/topics/wages/
Request for expiry review section 4.2.2.1 p. 31.
Request for expiry review section 4.2.2.1 p. 32.
https://investors.ternium.com/English/ternium/financial-information/default.aspx
Request for review, section 4.2.2.2, p. 33, Annex 8.
https://connect.ihsmarkit.com/gta/data-extracts/
https://www.cre.gob.mx/IPGN/
https://www.globalpetrolprices.com/Mexico/electricity_prices/
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