Commission Implementing Regulation (EU) 2025/1139 of 6 June 2025 imposing a provisional anti-dumping duty on imports of hardwood plywood from the People’s Republic of China

• (260) The price of imports from China first surged by 42 % between 2021 and 2022 due to the sudden increase in demand in the Union market after the exclusion of 1,4 million m³ of hardwood plywood from Russia and Belarus due to the economic sanctions and the economic recovery after the COVID pandemic. This increase, however, was of a temporary nature: prices slumped back to levels closely resembling the 2021 price in 2023 and the IP.

• (261) The Commission determined the price undercutting during the investigation period by comparing the weighted average sales prices per product type of the sampled Union producers charged to unrelated customers on the Union market, adjusted to an ex-works level, and the corresponding weighted average prices per product type of the imports from the cooperating producer to the first independent customer on the Union market, established on a CIF basis, with appropriate adjustments for customs duties and post-importation costs.

• (262) The price comparison was made on a type-by-type basis for transactions at the same level of trade, duly adjusted where necessary, and after deduction of rebates and discounts. The result of the comparison was expressed as a percentage of the sampled Union producers’ theoretical turnover during the investigation period. It showed a weighted average undercutting margin of 46,3 %.

• (263) The Commission further noted that, throughout the period considered, the Chinese import prices as reported in Table 4 above, were consistently lower than the Union industry’s average unit sales price and average unit production costs as reported below in Table 8.

4.4.   Economic situation of the Union industry

4.4.1.   General remarks

• (264) In accordance with Article 3(5) of the basic Regulation, the examination of the impact of the dumped imports on the Union industry included an evaluation of all economic indicators having a bearing on the state of the Union industry during the period considered.

• (265) As mentioned in recital (27), sampling was used for the determination of possible injury suffered by the Union industry.

• (266) 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 the complainant relating to all Union producers, cross-checked where necessary with the questionnaire replies of 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 found to be representative of the economic situation of the Union industry.

• (267) 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.

• (268) The microeconomic indicators are: average unit prices, unit cost, labour costs, inventories, profitability, cash flow, investments, return on investments, and ability to raise capital.

4.4.2.   Macroeconomic indicators

4.4.2.1.   Production, production capacity and capacity utilisation

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

Table 5

Production, production capacity and capacity utilisation

	2021	2022	2023	Investigation period
Production quantity (m3)	1 872 902	1 845 776	1 699 086	1 664 963
Index	100	99	91	89
Production capacity (m3)	2 496 000	2 496 000	2 552 000	2 538 000
Index	100	100	101	102
Capacity utilisation(%)	75	74	67	66
Index	100	99	90	87
Source: Complainant and sampled Union producers.	Source: Complainant and sampled Union producers.	Source: Complainant and sampled Union producers.	Source: Complainant and sampled Union producers.	Source: Complainant and sampled Union producers.

• (270) The production volume of 1 872 902 m³ of the Union industry in 2021 remained largely stable in the year 2022 with 1 845 776 m³ hardwood plywood manufactured (– 1 %). However, in 2023 and the IP when compared to 2021, there was a sharp 9 % and 11 % decline in EU production, with only 1 664 963 m³ produced from 1 July 2023 to 30 June 2024. The Union industry was unable to benefit from the exclusion of Russian and Belarusian hardwood plywood on the Union market due to the economic sanctions to increase its production volume. To the contrary, it was forced to reduce its production starting in the year 2022 because of the increase of Chinese imports (+ 32 % in 2022, + 10 % in 2023 and + 16 % in the IP) sold at dumped prices. Throughout the period considered the total Union industry’s production volume decreased significantly by 11 %.

• (271) The development of production capacity, which increased by 2 % during the period considered following investments made by the Union industry, bears witness to the efforts of the Union industry to replace the Russian and Belarusian hardwood plywood excluded by the sanctions from the Union market.

• (272) Capacity utilisation at 75 % was already low in 2021 when COVID negatively affected demand. In 2022, the Union industry managed to maintain this level, only to see it fall by 10 % in 2023 and 13 % in the IP, when compared to the 2021 level.

4.4.2.2.   Sales quantity and market share

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

Table 6

Sales quantity and market share

	2021	2022	2023	Investigation period
Total sales quantity on the Union market (m3)	1 355 645	1 294 971	1 167 185	1 190 402
Index	100	96	86	88
Market share (%)	38	38	46	46
Index	100	105	127	126
Source: Complainant, sampled Union producers and Eurostat.	Source: Complainant, sampled Union producers and Eurostat.	Source: Complainant, sampled Union producers and Eurostat.	Source: Complainant, sampled Union producers and Eurostat.	Source: Complainant, sampled Union producers and Eurostat.

• (274) Sales quantity on the EU market by the Union industry followed a downward trend between 2021 and 2023 before slightly picking up in the investigation period. Throughout the period considered, the total Union industry’s sales quantity decreased significantly by 12 %.

• (275) The declining sales of the Union industry are commensurate with its declining production quantity.

• (276) The market share of the Union industry was 38 % in 2021, which is when Russian and Belarusian hardwood plywood was still imported into the Union. The market share of the Union industry increased during the period considered. However, this increase should be viewed in the context of the overall significant decrease in the size of the market (– 30 % due to the exclusion of Russian and Belarusian hardwood plywood products from the Union market, as explained in recital (250) above). As such, despite the declining sales quantity of the Union industry during the period the considered, its market share rose to 46 % in 2023 and the investigation period.

• (277) The 26 percentage points increase of the market share of the Union industry should also be seen in light of the two-third increase (67 %) of the market share of Chinese producers rising from 18 % to 31 % during the period considered, as shown in recital (254).

4.4.2.3.   Growth

• (278) Whereas the market share of the Union industry increased during the period considered, the evolution of production and sales volume, both in absolute and relative terms, took a downward trend over the period considered. As shown below in recital (280), employment also slightly deteriorated.

4.4.2.4.   Employment and productivity

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

Table 7

Employment and productivity

	2021	2022	2023	Investigation period
Number of employees (FTE)	11 308	11 367	11 179	11 101
Index	100	101	99	98
Productivity (m3/employee)	166	162	152	150
Index	100	98	92	91
Source: Complainant and sampled Union producers.	Source: Complainant and sampled Union producers.	Source: Complainant and sampled Union producers.	Source: Complainant and sampled Union producers.	Source: Complainant and sampled Union producers.

• (280) Throughout the period considered, the level of employment in the Union industry decreased by 2 %. In 2022, there was an increase of 1 % compared to the previous year. In 2023 and the investigation period, however, the level of employment decreased by 1 % and 2 %, respectively.

• (281) The relatively stable level of employment between 2021 and the end of the IP was due to the reluctance of the Union industry to downsize its highly trained workforce. As also shown in the evolution of the production capacity, as set out in recital (271), the Union industry was aware that there is continued demand for its product in the Union, but suffered price pressure from Chinese imports, as explained in more detail below in recital (288), which prevented it from raising output and sales.

• (282) As a result of the decrease in production, as shown in recital (270), and the relatively stable level of employment, as presented in recital (280), the productivity of the Union industry’s workforce, measured in m³ per employee produced per year, decreased by 9 % over the period considered.

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

• (283) All dumping margins were significantly above the de minimis level. The impact of the magnitude of the actual margins of dumping on the Union industry was substantial, given the volume and prices of imports from the country concerned.

• (284) This is the first anti-dumping investigation regarding the product concerned. Anti-dumping measures ranging from 14,4 to 15,8 % were imposed in November 2021 on imports of birch plywood originating in Russia ¹²⁶. Birch plywood falls within the scope of the product under investigation.

4.4.3.   Microeconomic indicators

4.4.3.1.   Prices and factors affecting prices

• (285) 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 8

Sales prices in the Union

	2021	2022	2023	Investigation period
Average unit sales price in the Union on the total market (EUR/ m3)	726	1 084	1 112	1 023
Index	100	149	153	141
Unit cost of production (EUR/m3)	685	976	1 078	1 074
Index	100	143	157	157
Source: Sampled Union producers.	Source: Sampled Union producers.	Source: Sampled Union producers.	Source: Sampled Union producers.	Source: Sampled Union producers.

• (286) Sales prices in the Union market increased by 41 % during the period considered. Such increase was driven by a strong rise of the costs of raw materials, especially logs, as explained below in recital (287). The increase of EU prices in 2022 and 2023 in view of the post-COVID economic boom was even sharper, at 49 % and 53 %, respectively. In the investigation period, sales prices dropped by 12 % compared to their peak in 2023.

• (287) The unit cost of production of the Union industry increased significantly during the period considered. It first rose by 43 % in 2022 when compared to 2021 and it increased further in 2023 and the investigation period, reflecting a 57 % increase of the unit cost of production when compared to 2021. The main driver of the cost increase was an upward trend in wood log prices, doubling in certain areas of the Union.

• (288) In 2022, the Union industry was able to increase its sales prices significantly to match the sharp increase in unit costs. However, as of 2023 and during the investigation period, the Union industry was unable to pass on the further cost increase to consumers by raising prices accordingly due to the price pressure caused by Chinese imports. The Union industry was forced to maintain a certain price level in order not to lose a certain level of sales, which, considering the decrease in consumption, translated into the Union industry being able to increase its market share on the Union market, as explained in recital (257).

4.4.3.2.   Labour costs

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

Table 9

Average labour costs per employee

	2021	2022	2023	Investigation period
Average labour costs per employee (EUR/FTE)	32 992	35 885	35 408	38 671
Index	100	109	107	117
Source: Sampled Union producers.	Source: Sampled Union producers.	Source: Sampled Union producers.	Source: Sampled Union producers.	Source: Sampled Union producers.

• (290) During the period concerned, labour costs rose by 17 %. Labour costs first rose by 9 % in 2022 before decreasing slightly in 2023. In the investigation period, labour cost increased again as a consequence of the restructuring of some Union producers.

4.4.3.3.   Inventories

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

Table 10

Stocks

	2021	2022	2023	Investigation period
Closing stock (m3)	32 504	47 952	42 609	40 504
Index	100	148	131	125
Closing stock as a percentage of production (%)	1,74	2,60	2,51	2,43
Source: Sampled Union producers.	Source: Sampled Union producers.	Source: Sampled Union producers.	Source: Sampled Union producers.	Source: Sampled Union producers.

• (292) During the period considered, stock levels increased by 25 %. In 2022, there was a sharp rise by 48 % in closing stocks when the Union industry tried to substitute some of the excluded Russian and Belarusian hardwood plywood, only to see its efforts undermined by an increase of low-priced imports from China. Inventory levels subsequently decreased but still remained well above the closing stock levels of 2021 in 2023 and the investigation period.

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

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

Table 11

Profitability, cash flow, investments and return on investments

	2021	2022	2023	Investigation period
Profitability of sales in the Union to unrelated customers (% of sales turnover)	7	12	4	–2
Index	100	187	57	–37
Cash flow (EUR)	36 169 036	40 537 498	26 041 480	–2 993 860
Index	100	112	72	–8
Investments (EUR)	22 388 097	21 166 045	14 321 929	15 499 246
Index	100	95	64	69
Return on investments (%)	7	16	2	–5
Index	100	217	32	–62
Source: Sampled Union producers.	Source: Sampled Union producers.	Source: Sampled Union producers.	Source: Sampled Union producers.	Source: Sampled Union producers.

• (294) 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. The increase by 49 % of EU sales prices in 2022 together with a 43 % increase in the cost of production, as explained in recitals (285) to (288) above, resulted in higher levels of profitability in that year. This increase was, however, temporary, as profitability subsequently dropped to the negative domain in the investigation period as the cost of production continued to rise (57 %) but could not be matched by a corresponding price increase (41 %). In other words, the Union industry significantly decreased its market share in 2023 and became loss-making during the investigation period as it was unable to increase its sales prices to cover the increased cost of production. The evidence, therefore, pointed to the existence of price suppression in 2023 and the IP.

• (295) The net cash flow is the ability of the Union producers to self-finance their activities. The trend in net cash flow followed that of profitability whereby the situation deteriorated after 2022 from a positive to negative cash flow situation.

• (296) Investments by the Union industry decreased by 31 % during the period considered. These investments consisted mainly of the modernisation of the production equipment of Union producers.

• (297) The return on investments is the profit in percentage of the net book value of investments. It rose sharply in the year 2022, in the aftermath of the COVID-19 pandemic when the Union industry was able to raise prices but decreased in 2023 and became negative in the investigation period.

• (298) Considering the deterioration of various indicators such as production, sales, profitability and return on investment, the sampled Union producers’ ability to raise capital also deteriorated during the period considered.

4.5.   Conclusion on injury

• (299) Consumption of hardwood plywood on the Union market decreased by 30 % in the period considered as a consequence of various factors, such as the economic sanctions imposed on imports of the product under investigation originating in Russia and Belarus, the release to the Union market of the Russian imports stock-piled in 2021 that were not recorded as consumption in 2022 and in the subsequent years, and the end of the post COVID-19 economic rebound. In this context, the quantity of hardwood plywood imported from China increased significantly in the period considered in both absolute and relative terms.

• (300) In the investigation period, Chinese import quantities rose to 16 % above their 2021 level. Their market share increased from 18 % in 2021 to 31 % in the investigation period (+ 67 %). The price of imports from China initially increased by 42 % in 2022 when compared to 2021, before continuously decreasing afterwards. In the IP, the price of imports from China was 12 % above the 2021 level, which was in sharp contrast with the evolution of the Union industry’s or other third countries’ price in the Union, that increased significantly (+ 41 % and + 34 %, respectively) in the same period.

• (301) Most macro-indicators and micro-indicators deteriorated during the period considered. The sales quantity, production quantity and capacity utilisation of the Union industry decreased by respectively – 12 %, – 11 % and – 13 % during the period considered. In a context of decreasing consumption (– 30 %), the Union industry increased its market share by 8 percentage points to 46 %, as its sales decreased less than the decrease in consumption. The increase of market share by the Union industry should also be viewed in the context of Chinese imports also significantly increasing their market share in the Union market. Further, following the decrease in sales of Union producers, stocks increased by 25 %, having a negative effect on their cash-flow. The production capacity of the Union industry rose slightly by 2 % during the period considered but at the same time investments decreased by – 31 %. Employment decreased by – 2 % over the period considered.

• (302) Whereas the average EU sales price increased by 41 % over the period considered, the unit production costs increased far more (+ 57 %) over the same period. Starting in 2023, the Union industry was unable to raise its sales prices to cover this increasing cost of production due to the price pressure from Chinese imports, so that the Union industry went from a profit-making situation in 2021 and 2022, to a significantly reduced profit in 2023 and to suffering losses in the investigation period (– 2 %). Labour costs also showed a deterioration with an increase by 17 % as a consequence of the restructuring that some Union producers went through. The net cash flow and the return of investment of the Union industry followed the profitability trend by turning negative in the investigation period.

• (303) On the basis of the above, the Commission concluded at this stage that the Union industry suffered material injury within the meaning of Article 3(5) of the basic Regulation.

5. CAUSATION

• (304) In accordance with Article 3(6) of the basic Regulation, the Commission examined whether the dumped imports from the country concerned caused material injury to the Union industry. In accordance with Article 3(7) of the basic Regulation, the Commission also examined whether other known factors could at the same time have injured the Union industry. The Commission ensured that any possible injury caused by factors other than the dumped imports from the country concerned was not attributed to the dumped imports. These factors are imports from third countries, the export performance of the Union industry, the decrease in EU consumption and the energy crisis, as claimed by interested parties.

5.1.   Effects of the dumped imports

• (305) The deterioration of the economic situation of the Union industry coincided with increasing market penetration of imports of hardwood plywood originating in China, which consistently undercut the Union industry’s prices, as Chinese prices remained consistently lower than the average unit sales prices of the Union industry throughout the period considered and the undercutting margin found was as high as 46,3 %. The influx of low priced Chinese imports lead to price suppression in 2023 and the IP, as explained in recital (255), that also prevented the Union industry from replacing in the same period part of the birch plywood from Russia and Belarus banned from the Union market in 2022. The evolution of import volumes and prices, as reflected in Tables 3 and 4 above, demonstrated that price levels of the Union industry were suppressed, see Table 8, thereby establishing a causal link between the Chinese imports and the material injury suffered by the Union industry.

• (306) Imports from China increased by 16 % during the period considered, from 683 984 m³ in 2021 to 794 899 m³ in the investigation period, representing a market share of 31 %. These imports were made at prices significantly lower than those of the Union industry throughout the period considered. These low-priced imports in increasing volumes prevented the Union industry from raising its prices in line with the increase in the cost of production.

• (307) In a situation of increasing costs and the price pressure exerted by Chinese dumped imports, the Union industry was unable to set sustainable prices, resulting in a strong drop in profitability, from a positive margin of 7 % in 2021 and of 12 % in 2022, to a significantly lower margin of 4 % in 2023 and a loss of – 2 % in the investigation period. The Union industry faced in 2023 and the IP a further increase in costs, whereas the prices of Chinese imports even further dropped, by almost 20 % in 2023 compared to 2022, and in the IP even went further down. Other financial indicators, such as cash flow and return on investment, also turned negative in the investigation period.

• (308) It was, therefore, provisionally concluded that dumped imports of hardwood plywood from China caused material injury to the Union industry in terms of price and volume.

5.2.   Effects of other factors

5.2.1.   Imports from third countries

• (309) The quantity of imports from other third countries developed over the period considered as follows:

Table 12

Imports from third countries

Country		2021	2022	2023	Investigation period
Russian Federation	Quantity (m3)	1 170 940	602 859	134	0
	Index	100	51	0	0
	Market share (%)	31	18	0	0
	Average price (EUR/m3)	524	703	793	0
	Index	100	134	151	0
Belarus	Quantity (m3)	194 609	117 361	40	0
	Index	100	60	0	0
	Market share (%)	5	3	0	0
	Average price (EUR/m3)	431	532	381	0
	Index	100	123	88	0
Kazakhstan	Quantity (m3)	0	31 108	143 490	113 501
	Index	0	100	461	365
	Market share (%)	0	1	6	4
	Average price (EUR/m3)	0	685	606	562
	Index	0	100	88	82
Other third countries	Quantity (m3)	332 132	465 376	476 034	501 747
	Index	100	140	143	151
	Market share (%)	9	14	19	19
	Average price (EUR/m3)	719	951	848	782
	Index	100	132	118	109
All third countries excluding China	Quantity (m3)	1 697 681	1 216 704	619 698	615 248
	Index	100	72	37	36
	Market share (%)	45	36	24	24
	Average price (EUR/m3)	552	781	792	741
	Index	100	141	143	134
Source: Eurostat.	Source: Eurostat.	Source: Eurostat.	Source: Eurostat.	Source: Eurostat.	Source: Eurostat.

• (310) With the exclusion of Russian and Belarusian hardwood plywood from the Union market in 2022, imports from other sources only represented approximately 63 % of the volume imported from China. In absolute terms, there was a slight decrease in import volumes from 2023 to the investigation period from these sources. Accordingly, the market share of imports from countries other than China, Russia and Belarus in the investigation period remained significantly below the 31 % market share of Chinese producers.

• (311) Imports from countries other than China, Russia and Belarus were sold at prices that are almost twice the price of imports from China. In the investigation period, the average price of imports from China was 56 % of the average price of imports from countries other than China, Russia and Belarus.

• (312) Based on the limited volume, steady market share and high price of imports from other sources than China, Russia and Belarus, the Commission provisionally concluded that the impact of third country imports did not attenuate the causal link between dumped Chinese imports and the material injury suffered by Union producers.

5.2.2.   Export performance of the Union industry

• (313) The volume of exports of the sampled Union producers developed over the period considered as follows:

Table 13

Export performance of the sampled Union producers

	2021	2022	2023	Investigation period
Export volume (m3)	408 876	258 316	293 481	295 536
Index	100	63	72	72
Average price (EUR/m3)	733	1 103	1 135	1 085
Index	100	150	155	148
Source: Eurostat and sampled Union producers.	Source: Eurostat and sampled Union producers.	Source: Eurostat and sampled Union producers.	Source: Eurostat and sampled Union producers.	Source: Eurostat and sampled Union producers.

• (314) The Union industry experienced a drop of – 37 % in export volumes in 2022 when compared to 2021, likely linked to the unexpected availability on the international market of Russian and Belarusian plywood following the imposition of EU economic sanctions resulting in the prohibition of selling these products on the Union market. The diversion of these volumes continued depressing export sales of the Union industry in 2023 and the investigation period. In the period considered, export sales decreased from 28 % of the total sales volume sold by the Union industry to 23 %, or by 113 340 m³ in absolute numbers.

• (315) As shown in recitals (259), (286) and (309), in 2022, there was an increase of approximately 35-50 % in world market prices. EU export prices generally followed the same trend as prices charged in the EU. The Union industry was able to raise export prices to 150 % of the 2021 level in 2022, but prices slumped to 148 % in the IP.

• (316) The impact of the negative evolution in export volumes was mitigated by their low absolute quantity (295 536 m³ in the IP) and share of total sales of the Union industry (18,6 % in the IP), coupled with the increase in average export prices over the period considered. The Commission provisionally concluded that the export performance did not attenuate the causal link between the dumped imports and the material injury suffered by the Union industry.

5.3.   Consumption

• (317) The Commission found that the exclusion from the Union market of imports of hardwood plywood originating in Russia and Belarus in 2022 had a major impact on EU consumption. In 2021, the year before the imposition of economic sanctions concerning certain wood products from Russia and Belarus, these countries exported 1 365 549 m³ of hardwood plywood to the Union market, accounting for a combined market share on the Union market of 36 %. By 2023, the first full year when sanctions applied, the volume of their combined imports of hardwood plywood into the Union was reduced to 174 m³ (or 0 % market share).

• (318) There were movements in the market that compensated for the exclusion of Russian and Belarusian hardwood plywood. In particular, the circumvention of the anti-dumping and sanctions measures through Kazakhstan of 143 490 m³ and 113 501 m³ of hardwood plywood in 2023 and the investigation period, respectively; the increase of imports from other third countries by 169 615 m³ and finally the increase by 110 916 m³ of Chinese imports in the investigation period. Nevertheless, Union consumption contracted by 30 % in the IP.

• (319) The Commission examined the reasons why the majority of the excluded Russian and Belarusian plywood was not substituted immediately or in the short term by the Union industry, claiming a spare capacity of 873 037 m³ in the investigation period, or by imports from other countries.

• (320) As far as the Union industry is concerned the lack of immediate availability of the main raw material, logs, that is a general feature of this industry relying on an input material that is not widely traded, imposed a limit on a sudden increase of production. In addition, the Union industry produced to order and not to stock. Therefore, it did not have large quantities of hardwood plywood that could be immediately mobilized once the economic sanctions drove Russian and Belarusian hardwood plywood out of the Union market. In the medium term, the Union industry has the capacity both in terms of production and raw materials to replace the majority of the volumes excluded from the market provided that the level playing field is restored.

• (321) The reaction of Chinese and other third country producers to the imposition of economic sanctions in the EU was swifter. Imports from China and the rest of the world, except Russia and Belarus, immediately increased by 32 % and 49 %, in 2022, respectively. Nevertheless, the combined increase in imports from China and the rest of the world was only 353 491 m³ in 2023. The increase in imports could not compensate for the exclusion of 1 427 973 m³ of Russian and Belarusian hardwood plywood.

• (322) The Commission provisionally concluded that the decrease in consumption did not attenuate the causal link between the dumped imports and the material injury suffered by the Union industry.

5.3.1.   Alleged decrease of demand in the Union market

• (323) PTIA claimed that the reason for the drop in Union consumption after 2022 is not the imposition of economic sanctions on Russian and Belarusian hardwood plywood, but rather a collapse of demand due to a slowdown of the Union construction industry. They argued that the inability of the EU hardwood plywood industry to fill in the gap left by the excluded Russian and Belarusian plywood demonstrated that there was a drop of demand in the EU market rather than a contraction of supply. This drop of demand allegedly was the main cause of the injury to the Union industry.

• (324) The Commission considered that the Union construction sector experienced a post-Covid peak in the years 2021 and 2022, followed by a slowdown. However, production and sales of the Union industry decreased significantly less (– 12 % and – 11 %, respectively in 2023 and the IP) than the decrease of consumption (– 30 %), showing that even in a contracting market, the Union industry managed to continue producing and selling significant quantities, even though the pressure from Chinese manufacturers, continuously increasing their import volumes at significantly lower prices, was increasingly felt and causing material injury.

• (325) In addition, the circumvention of the anti-dumping measures and the economic sanctions restrictions concerning hardwood plywood originating in Russia and Belarus via Kazakhstan and Türkiye ¹²⁷ showed that demand in the Union market was still high. In fact, the situation of the Union market can be best described as a contraction of supply rather than that of demand.

• (326) The Commission found that the lack of immediate availability of increased amounts of birch and poplar logs, see recital (320), the main raw material of hardwood plywood in the EU, resulted in turn in a lack of immediate availability of hardwood plywood itself, thus constituting a contraction of supply and therefore creating a decrease in overall Union consumption. The Commission considered the issues linked to the unavailability of logs to be entirely physiological and one of the general features of the plywood industry. More specifically, trees that are of the right age for hardwood plywood production are planted 10-40 years before they can be logged. Hardwood plywood manufacturers own plantations or buy from long-term suppliers with multiyear contracts, although in some markets in the Union auctions are also common. This bottleneck in raw material supply did not allow for an immediate switch to significantly higher production volumes of hardwood plywood. A gradual shift in the medium term from logs destined for paper and timber production to plywood is, however, possible if the Union hardwood plywood industry is able to charge fair market prices. In addition, so called reserve plantations that are mature but were not harvested for environmental reasons, e.g. soil retention, can also be logged.

• (327) It was found that Chinese hardwood plywood suppliers were the only ones that could increase significantly their sales volumes in 2022-2023 because they had large stocks due to a slowdown of the Chinese construction sector starting in 2021. In the medium term, EU producers were prevented by these imports from increasing their production volumes.

• (328) In view of the above, the Commission rejected the claim and considered that the inability of the Union industry to replace banned Russian and Belarusian hardwood plywood was due to an increase of dumped Chinese imports and the lack of immediately usable logs. The drop in consumption starting in 2022, peaking in 2023 and slightly recovering in the IP, represented a missed opportunity for the Union industry and was potentially a contributing factor to the injury suffered, without, however, attenuating the causal link with dumped Chinese imports. Such imports during the period considered characterized by a contracting Union market, strongly increased in volume and decreased in price despite of a general increase in costs experienced by the Union industry (see recital (287)).

5.3.2.   Energy crisis

• (329) PTIA submitted that the energy crisis in the EU as a result of Russia’s invasion of Ukraine was a decisive factor in the increase of the costs of production of the Union industry.

• (330) The Commission found that the energy crisis had only a limited impact on the hardwood plywood industry. Sampled Union producers generated their own energy fuelled by biomass (chips, bark, sawdust, faulty veneers). While not immune to the rise of energy prices, also linked to rising transport prices, the Union industry was relatively well shielded from the energy crisis.

• (331) The Commission therefore rejected the claim and provisionally concluded that high energy prices did not attenuate the causal link between the dumped Chinese imports and the material injury.

5.4.   Conclusion on causation

• (332) The Commission provisionally established a causal link between the material injury suffered by the Union industry and the dumped imports from China. As a result of the increase of the volume of dumped imports from China at declining prices, the Union industry faced a 57 % increase in its production costs, as evidenced in recital (287), which precluded it from setting sustainable prices resulting in a strong deterioration of its economic situation. Chinese imports led to negative price effects for the Union industry. The Commission found significant undercutting caused by Chinese imports. The Commission further found significant price suppression in 2023 and the IP. Profitability of the Union industry dropped from 7 % to a loss of – 2 % in the investigation period, cash flow and return on investment also turned negative in the IP.

• (333) The Commission distinguished and separated the effects of other known factors on the Union industry from the injurious effects of the dumped imports. The Commission provisionally considered that imports from third countries other than China, due to their limited volumes and relatively high price, did not attenuate the causal link between imports from China and the material injury suffered by the Union industry. The Commission further provisionally concluded that the decline in export sales and in consumption on the Union market did not contribute significantly and directly to the material injury suffered by the Union industry. By the same token, the Commission thoroughly explained in Section 5.3.1 above that the temporary unavailability of logs, while potentially being a contributing factor to the injury suffered, it did not however attenuate the causal link between Chinese dumped imports and the material injury.

• (334) On the basis of the above, the Commission concluded at this stage that the dumped imports from China caused material injury to the Union industry and that the other factors, considered individually and collectively, did not weaken the causal link between the dumped imports and the material injury. The injury consists of decreasing production, sales, productivity, prices, capacity utilisation, profitability, cash flow and return on investment, as well as rising labour costs and stocks.

6. LEVEL OF MEASURES

• (335) In the present case, the complainants claimed the existence of raw material distortions within the meaning of Article 7(2a) of the basic Regulation. Thus, in order to conduct the assessment on the appropriate level of measures, the Commission first established the amount of duty necessary to eliminate the injury suffered by the Union industry in the absence of distortions under Article 7(2a) of the basic Regulation. Then it examined whether the dumping margin of the sampled exporting producers would be higher than their injury margin, see recitals (346) to (348) below.

6.1.   Injury margin

• (336) The injury would be removed if the Union industry were able to obtain a target profit by selling at a target price in the sense of Articles 7(2c) and 7(2d) of the basic Regulation.

• (337) In accordance with Article 7(2c) of the basic Regulation, for establishing the target profit, the Commission took into account the following factors: the level of profitability before the increase of imports from the country under investigation, the level of profitability needed to cover full costs and investments, research and development (R&D) and innovation (‘IRI’), and the level of profitability to be expected under normal conditions of competition. Such profit margin should not be lower than 6 %.

• (338) In this regard, the complainant considered that a reasonable target profit should range between 10 % and 15 %.

• (339) As a first step, the Commission established a basic profit covering full costs under normal conditions of competition. With regard to the level of profitability before the increase of imports from the countries concerned, it was not possible to establish a profit margin on the basis of any of the years immediately prior to the increase of dumped imports from the country concerned, as in those years the Union industry suffered an influx of dumped imports from other origins. Also, the years 2021 and 2022 were found to be heavily influenced by the post COVID-19 economic recovery and did not appear appropriate to set the target profit. Therefore, none of these years could qualify as a year with a normal competitive situation on the Union market. Thus, the Commission considered more appropriate to use the profitability level of 13,43 % reached in 2017.

• (340) The Union industry provided evidence that its level of investments, R&D and IRI during the period considered would have been higher under normal conditions of competition. The Commission verified this information during the on-spot verification visits by checking the company’s internal records relating to investment plans, management decisions and financial statements and found the claims warranted. To reflect this in the target profit, the Commission calculated the difference between investments, R&D and IRI expenses under normal conditions of competition, as provided by the Union industry and verified by the Commission, with corresponding actual expenses over the period considered. The difference, expressed as a percentage of turnover, was between 0,07 % and 1,18 % depending on the sampled producers.

• (341) Such percentage was added to the basic profit of 13,4 %, mentioned in recital (339), leading to a target profit of 13,5 % and 14,6 %, depending on the situation of the sampled producers.

• (342) In accordance with Article 7(2d) of the basic Regulation, as a final step, the Commission assessed the future costs resulting from Multilateral Environmental Agreements, and protocols thereunder, to which the Union is a party, and of ILO Conventions listed in Annex Ia of the basic Regulation that the Union industry will incur during the period of the application of the measure pursuant to Article 11(2). Based on the submitted information, which was supported by the companies’ reporting tools and forecasts, the Commission established an additional cost in a range between EUR 1,06/m³ and EUR 5,55/m³, in comparison with the cost of compliance with such conventions during the investigation period. This additional cost was added to the non-injurious price.

• (343) On this basis, the Commission calculated a non-injurious price per m³ for the like product of the Union industry by applying the above-mentioned target profit margin (see recital (341)) to the cost of production of the sampled Union producers during the investigation period and then adding the adjustments under Article 7(2d) on a type-by-type basis.

• (344) The Commission then determined the injury margin level on the basis of a comparison of the weighted average import price of the cooperating exporting producer in the country concerned, as established for the price undercutting calculations, with the weighted average non-injurious price of the like product sold by the sampled Union producers on the Union market during the investigation period. Any difference resulting from this comparison was expressed as a percentage of the weighted average import CIF value.

• (345) The injury elimination level for ‘all other imports originating in the country concerned’ is defined in the same manner as the dumping margin for these companies.

Country	Company	Dumping margin (%)	Injury margin (%)
The People’s Republic of China	Pizhou Jiangshan Wood Co., Ltd	25,1	144,3
The People’s Republic of China	All other imports originating in the PRC	62,4	192,7

6.2.   Examination of the margin adequate to remove the injury to the Union industry

• (346) As explained in the Notice of Initiation, the complainant provided the Commission sufficient evidence that there are raw material distortions in the country concerned regarding the product under investigation. Therefore, in accordance with Article 7(2a) of the basic Regulation, this investigation examined the alleged distortions to assess whether, if relevant, a duty lower than the margin of dumping would be sufficient to remove injury.

• (347) However, as the margins adequate to remove injury were higher than the dumping margins, the Commission considered that, at this stage, it was not necessary to address this aspect.

• (348) Following the above assessment the Commission concluded that it is appropriate to determine the amount of provisional duties in accordance with Article 7(2) of the basic Regulation.

6.3.   Conclusion on the level of measures

• (349) Following the above assessment, provisional anti-dumping duties should be set as below in accordance with Article 7(2) of the basic Regulation:

Country	Company	Provisional anti-dumping duty (%)
The People’s Republic of China	Pizhou Jiangshan Wood Co., Ltd	25,1
The People’s Republic of China	All other imports originating in the PRC	62,4

7. UNION INTEREST

• (350) Having decided to apply Article 7(2) of the basic Regulation, the Commission examined whether it could clearly conclude that it was not in the Union interest to adopt measures in this case, despite the determination of injurious dumping, in accordance with Article 21 of the basic Regulation. The determination of the Union interest was based on an appreciation of all the various interests involved, including those of the Union industry, importers, wholesalers, retailers and users.

7.1.   Interest of the Union industry

• (351) The Union industry is composed of around twenty-six companies. They are located in Austria, Bulgaria, Czechia, Estonia, Finland, France, Germany, Greece, Hungary, Italy, Latvia, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden, employing approximately 40 000 workers directly and indirectly. The hardwood plywood industry mostly provides jobs in rural areas. The majority of Union producers, seventeen companies in total, supported the complaint and none opposed the initiation of the investigation.

• (352) The current level of profitability of the Union industry is unsustainable. The imposition of measures is expected to allow the Union industry to raise sales prices and regain its profitability.

• (353) The absence of measures is likely to have a significant negative effect on the Union industry in terms of further price suppression and a further reduction of sales, leading to more losses, the closure of production facilities and dismissals.

• (354) The Commission, therefore, concluded that the imposition of provisional measures is in the interest of the Union industry.

7.2.   Interest of unrelated importers

• (355) Fifty-two importers registered as interested parties and a number of submissions and comments were received from some of them. Nineteen importers formed the PTIA, an ad hoc alliance of Union importers. As mentioned in recital (29), the Commission selected a sample of three importers. Two of the sampled importers submitted a full questionnaire reply and one importer submitted a partial questionnaire reply.

• (356) Several importers argued that the Union industry lacks the capacity to meet demand in the Union, alleging that the measures would create a shortage in the market. Importers also claimed that the higher prices resulting from the possible imposition of high anti-dumping duties cannot be passed on to customers and will drive them out of the market. In addition, claims were raised concerning the lack of interest of Union producers in supplying certain types of hardwood plywood.

• (357) Concerning the risk of a shortage of hardwood plywood in the Union market as a consequence of the measures, the Commission considered that this risk is limited. First, the Union industry has the capacity to increase production. Second, there are many other sources of supply other than China. Finally, Chinese exporting producers can continue exporting to the Union at fair prices.

• (358) Hardwood plywood imported from China is a significant and profitable component of the product offer of importers, together with hardwood plywood imported from countries other than China. The imposition of the measures may change the product mix offered by importers and traders by increasing the share of non-Chinese origin hardwood plywood, but it is unlikely that the imposition of measures will cause a complete halt of imports from China.

• (359) The investigation found that the Union industry is willing and capable to supply all segments of the Union market, but currently is unable to do so as it has been priced out of certain market segments by dumped Chinese imports. Certain types of hardwood plywood panels are imported at prices that are so unfairly low that they are below the cost of production of Union manufacturers.

• (360) In conclusion, the anti-dumping measures at the level established above may affect negatively certain unrelated importers. Such an impact should not be significant overall because of the availability of alternative sources of hardwood plywood to China, and the importers’ ability to pass on at least part of the increase in costs to their customers. Based on their questionnaire replies, the sampled importers achieved healthy levels of profitability in the IP.

• (361) On the basis of the above, the Commission provisionally established that any negative impact of the measures on unrelated importers as a whole is expected to be limited and will not outweigh the positive effect of measures on Union producers.

7.3.   Interest of users and suppliers

• (362) One user and an association of users, as well as two suppliers, wholesalers/retailers, registered as interested parties. One user, Bouwmaat, submitted a partial questionnaire reply. No specific claims were raised by users but PTIA, the association of importers and traders, provided observations relating to the Union interest part of the complaint arguing against the imposition of high duties from the point of view of end-users, too.

• (363) The imposition of measures are likely to have an impact on users, however, the Commission at this stage lacked data from users, as the only partial questionnaire reply received did not allow the Commission to analyse in detail the impact of the measures.

• (364) The Commission assessed the likely impact on users of the measures and provisionally found that for most industrial users the cost of hardwood plywood panels used in their core activity, e.g. formwork for construction, is not very significant in relation to its total costs. The same applies to the transport sector, e.g. the cost of thin hardwood plywood used for furnishing the interior of a recreational vehicle or a ship, is negligible compared to its total price. Accordingly, the impact on most industrial users, accounting for more than 60 % of end customers, and their suppliers will be limited. Non-industrial users and their suppliers will be affected more by the expected price increase. Users in the furniture, cabinet-making and musical instrument industry will also bear some impact, although hardwood plywood is generally used for high end products selling for a premium price, thereby reducing the importance the cost of raw material. The Commission found that any negative impact of the measures on users will not outweigh the positive effect of measures on Union producers.

7.4.   Conclusion on Union interest

• (365) On the basis of the above, the Commission concluded that there were no compelling reasons to rule that it was clearly not in the Union interest to impose measures on imports of hardwood plywood originating in China at this stage of the investigation.

8. PROVISIONAL ANTI-DUMPING MEASURES

• (366) On the basis of the conclusions reached by the Commission on dumping, injury, causation, level of measures and Union interest, provisional measures should be imposed to prevent further injury being caused to the Union industry by the dumped imports.

• (367) Provisional anti-dumping measures should be imposed on imports of product originating in the country concerned, in accordance Article 7(2a) of the basic Regulation. The Commission concluded in recital (349) that the appropriate level to remove injury should be the dumping margin.

• (368) On the basis of the above, the provisional anti-dumping duty rates, expressed on the CIF Union border price, customs duty unpaid, should be as follows:

Country	Company	Provisional anti-dumping duty (%)
The People’s Republic of China	Pizhou Jiangshan Wood Co., Ltd.	25,1
The People’s Republic of China	All other imports originating in the PRC	62,4

• (369) The individual company anti-dumping duty rate specified in this Regulation was established on the basis of the findings of this investigation. Therefore, it reflects the situation found during this investigation with respect to this company. This duty rate is exclusively applicable to imports of the product concerned originating in the country concerned and produced by the named legal entity. Imports of the product concerned produced by any other company not specifically mentioned in the operative part of this Regulation, including entities related to that specifically mentioned, should be subject to the duty rate applicable to ‘all other imports originating in the PRC’. They should not be subject to any of the individual anti-dumping duty rates.

• (370) 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 country concerned’.

• (371) 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.

• (372) 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.

9. REGISTRATION

• (373) As mentioned in recital (3), the Commission made imports of the product concerned subject to registration. Registration took place with a view to possibly collecting duties retroactively under Article 10(4) of the basic Regulation.

• (374) In view of the findings at provisional stage, the registration of imports should be discontinued.

• (375) No decision on a possible retroactive application of anti-dumping measures has been taken at this stage of the proceeding.

10. INFORMATION AT PROVISIONAL STAGE

• (376) In accordance with Article 19a of the basic Regulation, the Commission informed interested parties about the planned imposition of provisional duties. This information was also made available to the general public via DG Trade and Economic Security’s website. Interested parties were given three working days to provide comments on the accuracy of the calculations specifically disclosed to them.

• (377) The Commission received comments from China National Forest Products Industry Association and several Chinese exporting producers. The parties requested, amongst others, the Commission to disclose the calculations and the methodology for establishing the dumping margin for ‘All other imports’.

• (378) The Commission disagreed. The purpose of the information provided at the provisional stage was to allow interested parties to comment on the accuracy of the calculations, and not on the methodology. The methodology to establish the duty rate for ‘All other imports’ is explained in Section 3.5 of the Regulation, and interested parties were invited to comment, as set out in Article 2(1) below. The actual calculations that were based on the normal value of Jiangshan Wood could, however, not be disclosed without revealing confidential data of the company. Therefore, the Commission rejected the claim.

• (379) No other comments were received.

11. FINAL PROVISIONS

• (380) In the interests of sound administration, the Commission will invite the interested parties to submit written comments and/or to request a hearing with the Commission and/or the Hearing Officer in trade proceedings within a fixed deadline.

• (381) The findings concerning the imposition of provisional duties are provisional and may be amended at the definitive stage of the investigation.

• (382) The complainant has pointed to alleged circumvention practices already at the stage of registration of imports of the product concerned ¹²⁸. This alleged practice consisted of placing very thin outer layers of softwood veneer on top of the hardwood plywood face veneer. Such practice makes the product fall under customs codes which are not subject to registration, without altering its essential characteristics. Consequently, to minimise the risk of circumvention, the Commission considered appropriate to monitor such imports. Therefore, separate TARIC codes should be created for imports of such products within CN codes 4412 10 00 and 4412 39 00 . Information collected when monitoring such imports could also be used to initiate an anti-circumvention investigation under Article 13 of Regulation (EU) 2016/1036,

HAS ADOPTED THIS REGULATION:

Article 1

Country of origin	Company	Provisional anti-dumping duty (%)	TARIC additional code
The People’s Republic of China	Pizhou Jiangshan Wood Co., Ltd	25,1	89MK
The People’s Republic of China	All other imports originating in the PRC	62,4	8999

Article 2

Article 3

Article 4

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, 6 June 2025.

For the Commission

The President

Ursula VON DER LEYEN