Commission Implementing Regulation (EU) 2024/2661 of 14 October 2024 imposing a definitive anti-dumping duty on imports of aluminium radiators 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

• (140) Import prices from China rose in line with the market trends. They reached a peak in 2022, when they were even higher than the sampled companies’ average price, but dropped by 25 % in the RIP. Overall, prices increased by 117 % over the period considered.

• (141) Chinese import prices rose in line with the market trends between 2020 and 2022. In the RIP, the average import price per unit from China into the Union decreased and was lower than both the average sales price per unit and the average cost of production per unit in the Union, as reported in Table 9 below.

4.4.   Imports from third countries other than China

• (142) The imports of aluminium radiators from third countries other than China were mainly from Iran and Türkiye.

• (143) The volume of imports into the Union as well as the market share and price trends for imports of aluminium radiators from other third countries developed as follows:

Table 5

Imports from third countries

Country		2020	2021	2022	Review Investigation period
Iran	Volume (element)	723 376	1 324 310	1 645 479	779 900
	Index	100	183	227	108
	Market share (%)	2 –4	3 –5	5 –7	3 –5
	Average price (EUR/element)	2,3	2,0	3,7	4,7
	Index	100	89	160	204
Türkiye	Volume (element)	85 352	116 661	161 560	137 116
	Index	100	137	189	161
	Market share (%)	0 –0,5	0 –0,5	0,3 –0,8	0,3 –0,8
	Average price (EUR/element)	8,8	18,3	17,1	18,7
	Index	100	207	193	212
Other third countries	Volume (element)	70 045	196 864	253 036	130 621
	Index	100	281	361	186
	Market share (%)	0 –0,5	0 –0,5	0,3 –0,8	0,3 –0,8
	Average price (EUR/element)	23,5	18,4	20,8	39,7
	Index	100	78	89	169
Total of all third countries except the China	Volume (element)	878 773	1 637 835	2 060 076	1 047 637
	Index	100	186	234	119
	Market share (%)	2 –4	3 –5	5 –7	3 –5
	Average price (EUR/element)	4,63	5,16	6,85	10,94
	Index	100	112	148	237
Source: Surveillance database.	Source: Surveillance database.	Source: Surveillance database.	Source: Surveillance database.	Source: Surveillance database.	Source: Surveillance database.

• (144) Imports from third countries increased by 19 % during the period considered, reaching their highest level in 2022, but in essence the market share remained stable. The average price of imports from third countries more than doubled over the period considered.

• (145) After disclosure, the applicant asked the Commission to show separately volumes, market shares and average price of imports from Iran and Türkiye. The Commission updated Table 5 above accordingly.

4.5.   Economic situation of the Union industry

4.5.1.   General remarks

• (146) 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.

• (147) As mentioned in recital (11), sampling was used for the assessment of the economic situation of the Union industry.

• (148) For the injury determination, the Commission distinguished between macroeconomic and microeconomic injury indicators.

• (149) The Commission evaluated the macroeconomic indicators on the basis of data contained in the review request, in the verified questionnaire replies of the sampled Union producers as well as in the macroeconomic data provided by AIRAL and FIR. The data encompasses all Union producers.

• (150) The Commission evaluated the microeconomic indicators on the basis of verified data contained in the questionnaire replies from the sampled Union producers. The data related to the sampled Union producers.

• (151) Both sets of data were found to be representative of the economic situation of the Union industry.

• (152) The macroeconomic indicators are: production, production capacity, capacity utilisation, sales volume, market share, growth, employment and productivity, and recovery from past dumping.

• (153) 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

• (154) The total Union production, production capacity and capacity utilisation developed over the period considered as follows:

Table 6

Production, production capacity and capacity utilisation in the Union

	2020	2021	2022	Review Investigation period
Production volume (elements)	39 000 000 – 43 000 000	47 000 000 – 51 000 000	40 000 000 – 44 000 000	30 000 000 – 34 000 000
Index (2020 = 100)	100	120	103	79
Production capacity (elements)	72 000 000 – 77 000 000	70 000 000 – 75 000 000	70 000 000 – 75 000 000	65 000 000 – 70 000 000
Index (2020 = 100)	100	98	97	91
Capacity utilisation (%)	54 –56	67 –69	58 –60	47 –49
Index (2020 = 100)	100	123	106	87
Source: AIRAL, one non-sampled Union producer and verified questionnaire replies.	Source: AIRAL, one non-sampled Union producer and verified questionnaire replies.	Source: AIRAL, one non-sampled Union producer and verified questionnaire replies.	Source: AIRAL, one non-sampled Union producer and verified questionnaire replies.	Source: AIRAL, one non-sampled Union producer and verified questionnaire replies.

• (155) The production volume of the Union industry decreased by 21 % over the period considered. A year-to-year analysis shows an increase of 20 % from 2020 to 2021, followed by a gradual decrease from 2021 to the RIP. This is consistent with the trend in the demand for aluminium radiators in the Union, as shown in Table 2.

• (156) The production capacity decreased by 9 % over the period considered. It remained relatively stable from 2020 to 2022 and then declined by 6 %, showing that the Union industry was able to partially reduce capacity to deal with the reduction in production in the RIP.

• (157) The capacity utilisation decreased by 13 % during the period considered reflecting the falling trend of production despite the reduced production capacity.

4.5.2.2.   Sales volume and market share

• (158) The Union industry’s sales volume and market share developed over the period considered as follows:

Table 7

Sales volume and market share

	2020	2021	2022	Review Investigation period
Sales volume on the Union market (elements)	29 000 000 – 31 000 000	34 000 000 – 36 000 000	30 000 000 – 32 000 000	22 000 000 – 24 000 000
Index (2020 = 100)	100	117	101	77
Market share (%)	95 –97	94 –96	91 –93	94 –96
Index (2020 = 100)	100	99	97	99
Source: AIRAL, one non-sampled Union producer and verified questionnaire replies.	Source: AIRAL, one non-sampled Union producer and verified questionnaire replies.	Source: AIRAL, one non-sampled Union producer and verified questionnaire replies.	Source: AIRAL, one non-sampled Union producer and verified questionnaire replies.	Source: AIRAL, one non-sampled Union producer and verified questionnaire replies.

• (159) The sales volume of the Union industry in the Union market decreased by 23 % over the period considered. The sales trend mirrored the trends in Union consumption and production volume. Sales increased by 17 % from 2020 to 2021 to meet the increased demand in the Union market, as explained in recital (133), then gradually decreased in 2022 and in the RIP due to declining demand caused by higher prices and interest rates, as explained in recital (134).

• (160) The Union industry’s market share remained stable over the period considered, following the decrease in both Union consumption and sales volume and the decline in imports.

4.5.2.3.   Growth

• (161) Due to the decrease in consumption in the RIP, the sales volume of the Union industry decreased but the Union industry maintained its market share in the Union market. Production, employment, investment developed with a similar declining trend as sales volumes.

4.5.2.4.   Employment and productivity

• (162) Employment and productivity developed over the period considered as follows:

Table 8

Employment and productivity

	2020	2021	2022	Review Investigation period
Number of employees (Full Time Equivalent)	1 700 –1 750	1 700 –1 750	1 600 –1 650	1 400 –1 450
Index (2020 = 100)	100	100	95	82
Productivity (elements/employee)	23 950	28 733	25 987	22 881
Index (2020 = 100)	100	120	109	96
Source: AIRAL, one non-sampled Union producer and questionnaire replies.	Source: AIRAL, one non-sampled Union producer and questionnaire replies.	Source: AIRAL, one non-sampled Union producer and questionnaire replies.	Source: AIRAL, one non-sampled Union producer and questionnaire replies.	Source: AIRAL, one non-sampled Union producer and questionnaire replies.

• (163) Employment of the Union industry also decreased by 18 % during the period considered, in line with the changes in production volumes. The Union industry could however contain the decrease in productivity to 4 %.

4.5.2.5.   Magnitude of the dumping margin and recovery from past dumping

• (164) As explained in recital (99), it was not possible to establish an affirmative determination of dumping during the review investigation period. Therefore, no dumping margin could be established. The investigation therefore focused on the likelihood of a recurrence of dumping should the anti-dumping measures be repealed.

• (165) The anti-dumping measures imposed following the original investigation allowed the Union industry to recover from past dumping, as is shown by the data for the review investigation period.

4.5.3.   Microeconomic indicators

4.5.3.1.   Prices and factors affecting prices

• (166) The average unit sales prices of the sampled Union producers to unrelated customers in the Union developed over the period considered as follows:

Table 9

Sales prices and cost of production in the Union

	2020	2021	2022	Review Investigation period
Average unit sales price in the Union on the total market (EUR/element)	5,8	6,4	8,1	8,6
Index (2020 = 100)	100	111	140	148
Unit cost of production (EUR/element)	5,6	6,0	8,2	8,3
Index (2020 = 100)	100	107	145	147
Source: Questionnaire replies.	Source: Questionnaire replies.	Source: Questionnaire replies.	Source: Questionnaire replies.	Source: Questionnaire replies.

• (167) The average price of the Union industry increased by 48 % over the period considered, following the increase in the cost of production.

• (168) The average cost of production increased by 47 % over the period considered. It sharply increased already in 2022 (+ 45 % from 2020) and peaked in 2022. The increase in cost was driven mainly by the sharp increase in energy costs and in the price of aluminium, the main raw material.

4.5.3.2.   Labour costs

• (169) The average labour costs of the sampled Union producers developed over the period considered as follows:

Table 10

Average labour costs per employee

	2020	2021	2022	Review Investigation period
Average labour costs per employee (EUR)	43 793	49 541	48 400	48 417
Index (2020 = 100)	100	113	111	111
Source: Questionnaire replies.	Source: Questionnaire replies.	Source: Questionnaire replies.	Source: Questionnaire replies.	Source: Questionnaire replies.

• (170) The average labour cost per employee of the Union industry increased by 11 % over the period considered. It increased in 2021 by 13 %, remaining relatively stable thereafter.

4.5.3.3.   Inventories

• (171) Stock levels of the sampled Union producers developed over the period considered as follows:

Table 11

Inventories

	2020	2021	2022	Review Investigation period
Closing stocks (elements)	4 490 439	6 143 741	6 205 232	5 582 276
Index (2020 = 100)	100	137	138	124
Closing stocks as a percentage of production (%)	18	20	23	27
Index (2020 = 100)	100	109	129	147
Source: Questionnaire replies.	Source: Questionnaire replies.	Source: Questionnaire replies.	Source: Questionnaire replies.	Source: Questionnaire replies.

• (172) Inventories increased by 24 % over the period considered. The level of closing stocks increased from 4,5 million to 6,1 million elements in 2021, then to 6,2 million elements in 2022 before decreasing to 5,5 million elements in the RIP. In response to the higher consumption in 2021 and to optimise their production process, the Union industry increased stock levels. However faced with lower demand in 2022 the Union industry was unable to quickly reduce these stocks.

• (173) In relation to production, the closing stocks as percentage of the production increased by 47 %.

4.5.3.4.   Profitability, cash flow, investments, return on investments and ability to raise capital

• (174) Profitability, cash flow, investments and return on investments of the sampled Union producers developed over the period considered as follows:

Table 12

Profitability, cash flow, investments and return on investments

	2020	2021	2022	Review Investigation period
Profitability of sales in the Union to unrelated customers (% of sales turnover)	4,9	9,9	3,9	6,0
Index	100	201	80	122
Cash flow (EUR)	14 476 501	10 501 435	14 341 443	26 805 078
Index	100	73	99	185
Investments (EUR)	10 118 462	14 725 090	14 135 637	8 561 399
Index	100	146	140	85
Return on investments (%)	8,1	19,2	9,2	15,2
Index	100	237	114	188
Source: Questionnaire replies.	Source: Questionnaire replies.	Source: Questionnaire replies.	Source: Questionnaire replies.	Source: Questionnaire replies.

• (175) 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.

• (176) The profitability of the Union industry increased by one percentage point over the period considered. A year-to-year analysis shows that the profitability was at the highest in 2021, when it reached a level of 10 %, doubling the results of the previous year, but then sharply decreased again in 2022 to 4 % due to the deteriorated market conditions. It rebounded to 6 % in the RIP since the cost of aluminium decreased during the RIP while sales prices of radiators were adjusted downwards only with a delay.

• (177) The net cash flow is the ability of the Union producers to self-finance their activities. The trend in net cash flow developed upwards with an increase by 85 % over the period considered.

• (178) The annual investments of the Union industry decreased by 15 % over the period considered. While in 2021 and 2022 the investments were about 40 % higher than in 2020, they dropped in the RIP from around 14 million EUR to 8,5 million EUR and were mostly limited to replacement of existing equipment.

• (179) The return on investments is the profit in percentage of the net book value of investments. It developed with a similar trend as of profitability, being at the highest in 2021, declining in 2022 and then improving again in 2023, with an overall increase of seven percentage points over the period considered.

4.6.   Conclusion on injury

• (180) The investigation showed that most of the microeconomic indicators developed positively and the economic and financial situation of the Union industry improved during the period considered.

• (181) The Union industry was able to maintain its market share with the measures in place and was able to recover cash flow and return on investments.

• (182) The profitability of the Union industry increased during the period considered but remained below the target profit set in the original investigation.

• (183) However, the Union industry reduced production, employment and continued operating at low capacity utilisation, mainly due to the significant decrease in demand of aluminium radiators.

• (184) The deterioration of the macroeconomic indicators, paired with a reduction of net investments and an increase in inventories, suggest underlying weaknesses of the Union industry. Key concerns include the ability of the Union industry to maintain its profitability in a context of growing costs and declining demand, as well as the long-term implications of reduced net investment. While short-term liquidity and profitability are stable, future stability and growth may be at risk.

• (185) Despite this, the Commission concluded that, upon an overall assessment of the injury factors, 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

• (186) The Commission concluded in recital (185) that the Union industry did not suffer material injury from imports originating in China 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 caused by the dumped imports from China if the measures against were allowed to lapse.

• (187) In order to establish whether there was a likelihood of recurrence of injury if the measures against China were repealed, the Commission examined (i) the production capacity and spare capacity in China and attractiveness of the Union market; and (ii) likely price levels of imports from China and their impact on the situation of the Union industry should measures be allowed to lapse.

5.1.   Spare capacity in China and attractiveness of the Union market

• (188) As set out in Section 3.3.5.2, the production capacity in China substantially exceeded both the production volumes and the demand on the Chinese domestic market during the RIP. In addition, there were no elements that could indicate any significant increase in domestic demand in China or in any other third country market in the near future. Giving the conclusions on the attractiveness of the Union market as described in Section 3.3.5.3, the Commission concluded that such spare capacity would very likely be used for supplying the Union market, should the measures lapse.

5.2.   Likely price levels of imports from China and their impact on the Union industry

• (189) As set out in recital (103), the Commission considered the invoices and quotations provided in the request for review, adjusted for transport costs, landing costs and EU customs duties, as proxies for potential sales prices to the Union. Based on these export prices, imports from China into the Union, excluding the anti-dumping duty, would undercut the Union sales price by 45 % in the RIP. This indicates that the Chinese imports, at increased volumes, would impose substantial price pressure on the Union industry in the absence of measures.

• (190) If the measures were repealed, considering the likely price levels, the Union industry would not be able to maintain their sales volume and market share against lower priced imports from China. It is highly likely that the Chinese market share would increase rapidly if the measures were allowed to lapse, also in the light of the existing measures imposed by other third countries on the imports of aluminium radiators, recalled above at recitals (119) and (120).

• (191) Losing sales volume would lead to an even lower utilisation rate and an increase in the average cost of production, leading to a deterioration of the financial situation of the Union industry and increasing the risk of driving the industry into a loss-making situation.

• (192) In case the Union industry would decide to lower its price levels in an attempt to keep its sales volume and market share, its financial situation will almost immediately worsen, and a loss-making situation will likely materialise.

• (193) Under both scenarios, the impact of the expiry of the measures is likely to have a negative impact on the Union industry.

5.3.   Conclusion

• (194) On this basis, it is concluded that the absence of measures would in all likelihood result in a significant increase of dumped imports from China at injurious prices and material injury would be likely to recur.

6. UNION INTEREST

• (195) 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

• (196) The anti-dumping duties currently in force recalled in recital (3) have allowed the Union industry to maintain its market share in the Union market and improve its financial situation, but that industry is still unable to increase capacity utilisation and reach the target profit.

• (197) At the same time, the Commission also concluded that the Union industry would likely experience a deterioration of its situation if the existing measures against China were allowed to lapse.

• (198) Therefore, the Commission concluded that maintaining the existing anti-dumping measures would be in favour of the Union industry.

6.2.   Interest of unrelated importers

• (199) No importer cooperated in this investigation. In the previous expiry review, it was found that the impact of the imposition of measures on importers would not be significant.

• (200) In the absence of evidence suggesting otherwise, the Commission concluded that the measures currently in force had no substantial negative effect on importers and that the maintenance of the measures would not unduly affect them.

6.3.   Interest of users

• (201) No users came forward and cooperated with the investigation. Aluminium radiators are a consumer product; the users are distributors and large retail organisations who then resell the radiators.

• (202) In the original investigation and the previous expiry review ⁷⁸, it was found that the users were in a position to pass on all or almost all of the increase in prices resulting from the duty to final users, bearing in mind that for the latter the impact of such measures was not significant.

• (203) These findings were confirmed in the current expiry review as the investigation did not reveal any indication that would contradict the original findings.

• (204) On this basis, and in line with the conclusion drawn in the previous investigations, the Commission concluded that maintaining the measures would not have a significant impact on users.

6.4.   Conclusion on Union interest

• (205) On the basis of the above, the Commission concluded that there were no compelling reasons of the Union interest against maintaining the existing measures on imports of aluminium radiators originating in China.

7. ANTI-DUMPING MEASURES

• (206) On the basis of the conclusions reached by the Commission on recurrence of dumping, recurrence of injury and Union interest, the anti-dumping measures on aluminium radiators from China should be maintained.

• (207) To minimise 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 application of individual anti-dumping duties is only applicable upon presentation of 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. Until such invoice is presented, imports should be subject to the anti-dumping duty applicable to ‘all other imports originating in China’.

• (208) 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.

• (209) 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.

• (210) The individual company anti-dumping duty rates specified in this Regulation are exclusively applicable to imports of the product under review originating in China 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 China’. They should not be subject to any of the individual anti-dumping duty rates.

• (211) 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. 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.

• (212) 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.

• (213) In view of Article 109 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council ⁷⁹ 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.

• (214) The measures provided for in this regulation are in accordance with the opinion of the Committee established by Article 15(1) Regulation (EU) 2016/1036,

HAS ADOPTED THIS REGULATION:

Article 1

Company	Anti-dumping duty	TARIC additional code
Zhejiang Flyhigh Metal Products Co., Ltd.	12,6  %	B272
Metal Group Co. Ltd.	56,2  %	B273
Sira (Tianjin) Aluminium Products Co. Ltd.	14,9  %	B279
Sira Group (Tianjin) Heating Radiators Co. Ltd.	14,9  %	B280
Companies listed in Annex	21,2  %
All other companies	61,4  %	B999

• (a) it did not export the goods described in Article 1(1) originating in People’s Republic of China during the period between 1 July 2010 and 30 June 2011 (‘original investigation period’);

• (b) it is not related to an exporter or producer subject to the measures imposed by this Regulation, and which have or could have cooperated in the investigation that led to the duty; and

• (c) it has either actually exported the product under review originating in People’s Republic of China or has entered into an irrevocable contractual obligation to export a significant quantity to the Union after the end of the original investigation period.

Article 2

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, 14 October 2024.

For the Commission

The President

Ursula VON DER LEYEN

ANNEX

Company Name	TARIC additional code
Jinyun Shengda Industry Co., Ltd	B274
Ningbo Ephraim Radiator Equipment Co., Ltd	B275
Ningbo Everfamily Radiator Co., Ltd	B276
Ningbo Ningshing Kinhil Industrial Co., Ltd	B277
Ningbo Ninhshing Kinhil International Co., Ltd	B278
Yongkang Jinbiao Machine Electric Co., Ltd	B281
Yongkang Sanghe Radiator Co., Ltd	B282
Zhejiang Aishuibao Piping Systems Co., Ltd	B283
Zhejiang Botai Tools Co., Ltd	B284
Zhejiang East Industry Co., Ltd	B285
Zhejiang Guangying Machinery Co., Ltd	B286
Zhejiang Kangfa Industry & Trading Co., Ltd	B287
Zhejiang Liwang Industrial and Trading Co., Ltd	B288
Zhejiang Ningshuai Industry Co., Ltd	B289
Zhejiang Rongrong Industrial Co., Ltd	B290
Zhejiang Yuanda Machinery & Electrical Manufacturing Co., Ltd	B291

ELI: http://data.europa.eu/eli/reg_impl/2024/2661/oj

ISSN 1977-0677 (electronic edition)