Council Regulation (EC) No 215/2002 of 28 January 2002 imposing definitive anti-dumping duties on imports of ferro molybdenum originating in the People's Republic of China
Date: 2002-01-28
Institutions: Council of the European Union
Subjects: China, anti-dumping duty, ferro-alloy, import, originating product

6.2.2002

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Official Journal of the European Communities

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I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 215/2002

of 28 January 2002

imposing definitive anti-dumping duties on imports of ferro molybdenum originating in the
People's Republic of China

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community,

Having regard to Council Regulation (EC) No 384/96 of 22
December 1995 on protection against dumped imports from
countries not members of the European Community (1) (the
Basic Regulation), and in particular Article 9 thereof,

Having regard to the proposal submitted by the Commission
after consulting the Advisory Committee,

Whereas:

(5)

The oral and written comments submitted by the inter-
ested parties were considered and, where appropriate,
the findings have been modified accordingly.

C. PRODUCT CONCERNED AND LIKE PRODUCT

(6)

In the absence of any new argument on the product
concerned and the like product, the provisional findings
as described in recitals 13 to 17 of the Provisional
Regulation are hereby confirmed.

A. PROVISIONAL MEASURES

D. DUMPING

(7)

(8)

(1)

(2)

(3)

(4)

By Regulation (EC) No 1612/2001 (2) (the ‘Provisional
Regulation’) the Commission imposed a provisional anti-
dumping duty on imports of ferro molybdenum (‘FeMo’)
falling within CN code 7202 70 00 originating in the
People's Republic of China (the ‘PRC’).

B. SUBSEQUENT PROCEDURE

Subsequent to the disclosure of the essential facts and
considerations on the basis of which it was decided to
impose provisional anti-dumping measures on imports
of FeMo originating in the PRC, several interested parties
submitted comments in writing. The parties who so
requested were granted an opportunity to be heard
orally.

The Commission continued to seek and verify all infor-
mation it deemed necessary for reaching definitive find-
ings.

the essential

All parties were informed of
facts and
considerations on the basis of which it was intended to
recommend the imposition of a definitive anti-dumping
duty on imports of FeMo originating in the PRC and the
definitive collection of the amounts secured by way of
the provisional duty. They were also granted a period
within which to make representations subsequent to this
disclosure.

(1) OJ L 56, 6.3.1996, p. 1. Regulation as last amended by Regulation

(EC) No 2238/2000 (OJ L 257, 11.10.2000, p. 2).

(2) OJ L 214, 6.8.2001, p. 3.

1. General methodology

A number of Chinese exporting producers argued that
the timing of the sampling decision as stipulated by the
notice of initiation created considerable legal uncertainty
with regard to the applicable deadlines for the submis-
sion of the relevant questionnaires and that the Commis-
sion should have been more lenient in applying the
statutory deadlines.

additional

concerned with

In fact, the standard notice of initiation applied in this
proceeding clearly set out the applicable deadlines and
time limits for the submission of all the requisite infor-
the Commission provided the
mation. Furthermore,
clarifications
parties
concerning the various stages of the proceeding and was
available to address any further doubts or questions if
necessary. Moreover, exceptional flexibility was accorded
to some exporting producers who experienced difficul-
ties in submitting the requisite information. Finally, the
fact that the Commission services decided not to use
sampling was a mere consequence of the limited number
of cooperating exporting producers. Since this number
was considered to be manageable,
the Commission
services based their findings on the information duly
provided by all cooperating exporting producers. Any
allegation of legal uncertainty in this case is therefore
unfounded and in any event no exporting producer can
be said to have been negatively affected by the decision
not to sample or even by the timing of such a decision.

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(9)

The Commission has reviewed the treatment accorded to
one Chinese exporter which complied with the deadline
for the submission of the sample questionnaire but did
not apply for market economy or individual treatment.
This company is now treated as a cooperating party and
its export transactions have been included with those
from the other cooperating exporters in the dumping
calculations and in the assessment of the countrywide
dumping rate.

the Chamber of Commerce. These
the exception of
responses confirmed the establishment of an association
of FeMo producers with some of them claiming that it
would be unreasonable to infer State interference or
overturn the MET/IT findings based on the self-regula-
tory decisions of this grouping. A number of parties also
asserted that the Chinese Trade Ministry, MOFTEC, was
not involved in this matter and that the resolutions of
the Group were not submitted to MOFTEC for approval.

(10)

(11)

2. Withdrawal of Market Economy and Individual

Treatment (MET/IT)

It is recalled that at the provisional stage one exporter
was granted MET and three exporters were granted IT.
Significant information has come to light since then
which means that individual duty rates are no longer
justified at the definitive stage.

It was established that the China Chamber of Commerce
and Minmetals (CCCMC) hosted a meeting shortly after
the publication of the Provisional Regulation, that set up
a grouping of Chinese FeMo producers (the so-called
Molybdenum and Molybdenum Products Coordination
Group of China Chamber of Commerce of Minmetals
and Chemicals), accounting for 70 % of China's FeMo
output, which agreed to apply price and quantitative
restrictions on exports of FeMo to the Community. This
grouping brings together 25 producers, most of which
did not cooperate in the proceeding and thus did not
even make an attempt to demonstrate that they operate
in accordance with market economy principles and
without State interference. The Chairman of this group
is employed by a State-owned enterprise that is the
largest FeMo producer in China and which did not co-
operate in the anti-dumping investigation. The Vice-
Chairman meanwhile was drawn from the company that
was granted MET at the provisional stage of the invest-
igation. The producers concerned were granted specific
export allocations which appear to have been deter-
mined by taking into account the level of their provi-
sional anti-dumping duties. Thus, companies with low
duty levels were
allocated disproportionately high
quotas. The company which had been granted MET and
had the lowest duty (3,6 %) was allocated an export
quota in excess of its production capacity corresponding
to more than a third of the entire quantity which the
grouping intended to export to the Community. Further-
more, the group included as a stated aim the avoidance
of anti-dumping duties.

(12) All parties concerned, including all cooperating compa-
nies and the relevant Chamber of Commerce, were
informed of the Commission's concerns on this matter
and given the opportunity to respond to these findings.
Replies were subsequently received from all parties with

(13) However, the arrangement in question is clearly incom-
patible with the criterion of the free determination of
export prices and quantities that needs to be satisfied if
IT is to be awarded or maintained. Moreover, these
the
export constraints which were adopted under
auspices of the Chamber of Commerce,
in agreement
with several State-owned companies, strongly suggests
significant State influence, and a serious risk of circum-
vention of the duties. Furthermore, such a pact is a clear
to channel exports of one
and deliberate attempt
company via another company with a lower anti-
dumping duty for the purposes of avoiding such duties.
It should also be noted that if this arrangement had been
found to exist at an earlier stage in the investigation
neither IT nor MET would have been granted to the
companies concerned.

(14) Whilst information relating to a period subsequent to
the IP should not normally be taken into account, in
these exceptional circumstances, it is appropriate to take
account of these new developments which have the
effect of rendering the previous conclusions manifestly
unsound. In the light of this new information therefore,
it is concluded that sufficient evidence exists to render
the provisional IT findings invalid and the IT granted to
the concerned companies in the Provisional Regulation
is hereby effectively withdrawn. These companies will
henceforth be subject to the countrywide margin for
China.

signals

(15) With regard to the MET granted to one cooperating
company, it is recalled that the company declared in its
questionnaire response that its decisions concerning inter
alia prices, output and sales were made in response to
market
reflecting supply and demand and
without significant State interference. It is also stressed
that the granting of MET must, in line with the applic-
able provisions of Article 2(7) of the Basic Regulation,
be based on clear evidence that the producer operates
under market economy conditions. However, in this case
the company is seen to be aligning its operations and
business decisions not only with companies that failed
to satisfy the MET criteria but also with State owned

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firms that did not cooperate in the proceeding. More-
over, it appears willing to agree to export products that
it does not have the capacity to produce at minimum
prices established by the group. Clearly, this is contrary
to its prior declarations and incompatible with one of
the main criteria for granting MET that inter alia deci-
sions regarding prices, output and sales are made in
response to market signals.

that

In its assessment of whether or not a company should
be granted MET, the Commission bases its conclusions
mostly on the situation during the investigation period
(IP). If the criteria set out in Article 2(7) of the basic
Regulation have been complied with during this period,
the Commission can reasonably assume
the
company will operate in the future with a sufficient
degree of independence from the State and according to
market economy standards. However, in the present case
the company that appeared to act according to market
economy standards during the IP has modified its behav-
iour since it received its individual dumping margin.
Consequently, it is now apparent that this company no
longer operates in accordance with market economy
principles in accordance with Article 2(7)(c) of the Basic
Regulation, but that it is subject to external interference
and party to export constraints in terms of prices and
quantities. It also appears that the company does not
operate without significant State interference. Whilst
information relating to a period subsequent to the IP
should not normally be taken into account,
in these
exceptional circumstances,
is appropriate to take
account of the new developments which have the effect
conclusions manifestly
of
unsound.

the previous

rendering

it

it is
In the light of this new information therefore,
the MET finding concerning this
concluded that
company can no longer stand. Furthermore, an indi-
vidual duty is no longer appropriate for this company.
The MET previously awarded to Nanjing Metalink there-
fore is hereby revoked and it also will henceforth be
subject to the countrywide margin for China.

It should be noted that in any event, if such an arrange-
ment as described above had been found in the context
of an investigation relating to a fully-fledged market
economy country, the Institutions would have had no
choice but to impose a country-wide duty in accordance
with Article 9(5) because individual duty rates would not
have been appropriate.

(16)

(17)

(18)

(20)

(21)

(22)

(23)

3. Normal value

(24)

(a) A n a l o g u e c o u n t r y

(19) A number of exporting producers alleged that the infor-
mation provided by the cooperating US companies did
not provide a reliable basis for determining normal value
and questioned the Commission's finding that the US

companies sales during the IP were not in the ordinary
course of trade.

In fact, the information provided by both cooperating
companies in the US was fully verified by the Commis-
sion at the premises of both companies in the US. The
Commission has consequently satisfied itself as to the
accuracy and reliability of the data provided by both
this proceeding and
companies for the purposes of
confirms that normal value continues to be based on
that determined for the analogue country.

Some exporting producers submitted that it was inap-
propriate to use information provided by one of the
companies which was operating as a converter rather
than a producer, whilst others requested an adjustment
to take account of extraordinary costs relating to the
conversion process.

The Commission accordingly reconsidered the appro-
priateness of using data from a converter in the calcula-
tion of normal value in this proceeding. The importance
of ensuring that the data used were as comprehensive
and representative as possible was also considered in this
context. In this respect, it was concluded that even if the
information pertaining to the
converter was not
included in the relevant calculations, normal value
would still be based on reliable and representative data.
Consequently, and in order to address the concerns of
the relevant Chinese exporting producers, it was decided
to exclude the data relating to the converter in question
from the normal value determination. In any event, the
effect of this change in methodology was minimal.

Two exporting producers also claimed adjustments to
take account of differences in the costs of environmental
protection and molybdenum loss. As noted in the Provi-
sional Regulation, the Commission services considered
the merits of these claims. In this respect, it was noted
that Chinese companies are indeed subject to environ-
mental protection laws and standards and whilst these
are not the same as those in the US, the extent, if any, to
which the differences affect price comparability is
neither clear nor has it been demonstrated. Furthermore,
when this matter is viewed in conjunction with the
claim for molybdenum loss, the likelihood of any signifi-
cant impact on price comparability is further reduced.

Indeed, the claim that the molybdenum loss is poten-
tially higher in China than the US implies that the US
producers are more efficient than the Chinese producers.
Thus any difference in environmental costs may well be
at least partly offset by a more efficient production
in the absence of any precise
process. In any event,
quantification of the alleged differences relating to envir-
onmental costs and molybdenum loss, the Commission
concludes that no effects on price comparability have
been demonstrated and no adjustments are consequently
warranted in this respect.

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(25) With the exception of the exclusion of data from the
converter explained above,
the methodology for the
determination of normal value set out in recitals 38 to
40 of the Provisional Regulation is confirmed.

(b) E x p o r t p r i c e

(26)

The export prices were calculated in accordance with
Article 2(8) of the Basic Regulation, i.e. on the basis of
the export prices actually paid or payable for
the
product concerned to the first independent customer.

(33)

(34)

the sales volume of other
It should be noted that
Community operators have only been used to establish
the Community consumption and not for the evaluation
of the economic indicators pertaining to the situation of
the Community industry. Had the sales volume of other
the apparent
Community operators not been added,
Community consumption would have been underesti-
mated.

the

above,

findings
In view of
concerning the Community consumption, as described
in recitals 61 to 63 of the Provisional Regulation are
hereby confirmed.

the provisional

(c) C o m p a r i s o n

2. Imports originating in the PRC

(27)

(28)

The methodology set out in recitals 49 and 50 of the
Provisional Regulation is hereby confirmed.

Two exporting producers claimed that calculations
should be conducted by reference to the two grades
quoted in the Metal Bulletin. However, the method used
in the Provisional Regulation, i.e. referring to the exact
contents of molybdenum is considered more accurate
since it takes into account any variance of the contents,
and, moreover, allows better comparability with the
normal value, as
the analogue country producers
reported the relevant data according to molybdenum
content.

(a) V o l u m e a n d m a r k e t s h a r e o f

t h e i m p o r t s

c o n c e r n e d

(35)

In the absence of any new argument on the volume and
market share of the imports concerned, the provisional
findings as described in recitals 64 to 65 of the Provi-
sional Regulation are hereby confirmed.

(b) P r i c e s o f

t h e i m p o r t s c o n c e r n e d

(d) D u m p i n g m a r g i n

(i) Price evolution

(29)

In view of the changes concerning MET and IT outlined
above, all cooperating exporting producers will now
receive the countrywide dumping margin for the PRC.
The methodology for the calculation of this margin set
out in recitals 51 and 54 of the Provisional Regulation is
hereby confirmed.

(30)

The countrywide dumping margin for the PRC estab-
lished on this basis is 38,5 %.

(37)

E. COMMUNITY INDUSTRY

(31)

In the absence of any new argument on the Community
production and on the definition of the Community
industry, the provisional findings as described in recitals
the Provisional Regulation are hereby
56 to 60 of
confirmed.

F. INJURY

1. Community consumption

(32)

It has been argued that
the Community industry is
composed only of complaining/supporting companies
and thus information from other Community operators
should not be taken into account for the purpose of the
injury analysis.

(36)

In the absence of any new information on the price
evolution, the provisional findings as described in recital
66 of the Provisional Regulation are hereby confirmed.

(ii) Price undercutting

Two interested parties questioned the use of the date of
invoice to convert the currency of export into euro.
They claimed that, since there is about a one-month
time lag between the date of invoice and the date of
imports into the Community, the currency conversion
should be done on the basis of the exchange rate of the
month following that of invoice. In the alternative, they
claimed that an average exchange rate for the entire IP
should be used.

(38) As prescribed by the basic Regulation in the context of
the conversion of currencies for the calculation of the
dumping margin, the exchange rate of the date of sales
should be used, the date of sale being the invoice date,
unless another date more appropriately establishes the
material terms of the sale. In this context, no informa-
tion was provided showing that the date of customs
clearance would provide a more appropriate term of
sale. Thus, for both the exporters and the Community
industry the currency conversion was performed at the
same level, i.e. on the date of invoice, irrespective of the
date of delivery or customs clearance. In view of the
above,
it is considered that the conversion into euro
used at the provisional stage is adequate for the price
comparison. The request was thus rejected.

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(39)

(40)

Two exporting producers argued that the export prices
should be adjusted for differences in the level of trade,
since exporting producers sell to traders whereas the
Community industry sells to end-users.

It should be noted that the Community industry's sales
were found to have been made through various sales
channels, i.e. both traders and end-users. Furthermore,
no consistent and/or significant price differentials were
found to exist according to the different sales channels.
The request for a level of trade adjustment was thus
rejected.

(41) At the provisional stage, the cif prices of the exporting
producers were compared with those of the Community
industry at an ex-works level. In order to allow for a fair
comparison, two exporting producers requested that an
adjustment be made to the Community industry's prices
for costs relating to the renting of warehouses.

(42)

(43)

It is considered that no adjustment should be made to
the Community industry's prices regarding warehousing
costs given that the prices of the exporting producers
used for the calculation include these costs amongst the
post-importation costs which were added to the export
prices as described in recital 67 of the provisional Regu-
lation. Therefore, the request is rejected.

Taking into account the treatment of one additional
exporting producer at the definitive stage as a cooper-
ative party, the withdrawal of MET/IT, the arguments
mentioned above and the correction of clerical errors,
the difference between the prices expressed as a
the Community industry's weighted
percentage of
i.e. the country-wide weighted average
average prices,
price undercutting margin, amounted to 13,8 %.

3. Situation of the Community industry

(44)

In the absence of any new information affecting the
findings for the abovementioned factors, the provisional
findings as described in recitals 71 to 90 of the Provi-
sional Regulation are hereby confirmed.

(46)

The situation of the Community industry shows two
marked periods between 1997 and the IP:

— between 1997 and 1999 the production, sales,
share and profitability improved as
market
the
the
of
took
Community
decreasing sales volumes and market share of other
Community operators;

advantage

industry

— between 1999 and the IP, coinciding with the largest
the Chinese imports, Community
penetration of
industry's production decreased by 19 %,
sales
volume by 17 %, market share by more than 7
percentage points and profitability decreased to
between 0 % and 2 %. Thus, between 1999 and the
IP, despite an increase in Community consumption,
the volume of sales of
the Community industry
decreased, thus resulting in a loss of market share.

(47) A clerical error occurred in the second sentence of
recital 92 of the Provisional Regulation, that should have
read as follows: ‘Even though the Community industry
increased its volume of production and sales during the
period considered, it did not follow the growth of the
Community consumption between 1999 and the IP’.

(48)

(49)

It has been argued that if 1997 is taken as a start point
the
and the IP as an end point,
Community industry has not deteriorated.
is also
argued that the findings on injury cannot be based on a
deterioration of the situation of the Community industry
in the last part of the period considered, i.e. between
1999 and the IP.

the situation of

It

The purpose of an anti-dumping investigation is to eval-
uate the effect of the dumped imports on the situation
of the Community industry during the IP, which is the
period for which the existence of dumping is examined.
In this respect the period before the IP merely serves as
an indicator of the evolution of the situation of the
Community industry to determine whether the situation
during the IP can be classified as injurious. Furthermore,
the
rather than an end-point
examination
the
Community industry should take into account events
within the period considered, as was done in the Provi-
sional Regulation.

to end-point analysis,
of

economic

situation

the

of

4. Conclusion on injury

(50)

It is thus concluded that the analysis of the situation of
the Community industry made at the provisional stage
satisfies the requirements of the basic Regulation.

(45)

In the Provisional Regulation it was concluded that the
Community industry had suffered material injury during
the IP. It was found that between 1997 and the IP the
the dumped imports of Chinese FeMo
volume of
increased by 70 % and their share of the Community
market increased from around 34 % to around 49 %.
The largest increase took place between 1999 and the IP,
when the volume of imports increased by 41 % gaining
9,4 percentage points of market share.

(51)

In the absence of any new information on the situation
of the Community industry and with account being
taken of the abovementioned findings, the provisional
findings on the injury suffered by the Community
industry, as described in recitals 91 to 93 of the Provi-
sional Regulation, are hereby confirmed.

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G. CAUSATION

(ii) Lack of access to Mo natural resources by the Community

industry

(52)

Some interested parties have argued that any injury
suffered by the Community industry was caused by one
or various of the following factors:

(i) Evolution of prices of raw material

(53) One interested party argued that

the
Community industry have moved alongside the prices of
the raw materials and thus their evolution cannot be
attributed to the Chinese import prices.

the prices of

(54)

(55)

The investigation showed that the main raw material
used in the production of FeMo is MoO3 and that there
and FeMo prices, since
should be a link between MoO3
any price movement of MoO
automatically corresponds
3
to a movement in the cost of raw material for the
Community industry. Consequently, FeMo producers do
not have much room to set their prices. Indeed, in a
transparent market FeMo users carefully follow MoO
3
prices in order to be in a good position to negotiate
FeMo prices.

It should be noted that the trend of the Community
industry's prices during the period considered followed
the trend of the cost of raw material. At the same time,
given the imports from the PRC at prices which were
below those of the Community industry throughout the
period considered, with the exception of 1998,
the
Community industry's prices were prevented from
increasing at the same rate as the increase in the total
cost of production between 1999 and the IP. In this
respect it should be noted that between 1999 and the IP,
coinciding with the significant penetration of
the
Chinese imports in the Community market, the produc-
tion and capacity utilisation of the Community industry
decreased, with the consequent
increase in its costs.
Thus the increase in costs of 8 % in the IP, which could
not be fully reflected in the sales prices, led to a deteri-
oration of the profitability to a level which is insufficient
to ensure the long-term viability of
the Community
industry.

(56)

It is thus therefore concluded that the evolution of the
prices of the raw materials did not materially contribute
to the deterioration of the situation of the Community
industry. On the contrary, it is reasonable to assume that
in the absence of the dumped Chinese exports, both the
Community industry's price level and its market share
would have been significantly higher. In view of the
above, and in the absence of any new information, the
provisional findings as described in recitals 104 to 107
of the Provisional Regulation are hereby confirmed.

(57)

(58)

(59)

It was argued that the injury suffered by the Community
industry is attributable to its lack of access to Mo natural
resources, which significantly hampers its efficiency. On
the other hand, the access of Chinese FeMo producers to
Mo resources would result in their alleged competitive-
ness.

Firstly,
it should be noted that one of the producers
constituting the Community industry, is upstream inte-
grated and produces MoO3 and that no evidence has
been provided to show the alleged positive effect on the
Community industry's efficiency if vertically integrated.

Secondly, it should be noted that even if the PRC has Mo
natural resources,
its output has been reduced since
1998. Furthermore, information provided by an inter-
ested party indicates that the PRC imported substantial
volumes of molybdenum products, mainly Mo concen-
trate. Consequently the present situation contradicts any
alleged Chinese competitive advantage.

(60)

Finally, in the IP imports of Chinese FeMo were found to
be made at dumped prices and in significant quantities
coinciding with a loss of market share previously held
by the Community industry.

(61)

In the view of the above, it cannot be argued that the
injury suffered by the Community industry has been
caused by any lack of access to Mo natural resources.

(62)

(63)

(iii) The alleged problems of the Community industry were

intrinsic to the Mo market

It was argued that the examination of causation in the
Provisional Regulation was flawed since it did not
address the impact of the business cycle of the upstream
industry (copper industry) and that of the downstream
industry) on the injury suffered by the
industry (steel
Community industry.
the injury
suffered by the Community industry was intrinsic to the
Mo market although no evidence was provided in
support of this claim.

It was alleged that

It should firstly be noted that in the Provisional Regula-
tion the Commission examined the impact of the evolu-
tion of the prices of the raw material used in production
of FeMo, MoO3, on the situation of the Community
industry and it found that it had not contributed to the
injury suffered by the Community industry.

(64)

Secondly, MoO3
is obtained from Mo concentrates
which in turn can be obtained both as a by-product
from copper mining but also from the mining of crude
ores.

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(65)

industry, the FeMo main user.

in the
regarding the downstream industry,
Thirdly,
provisional Regulation the Commission examined the
evolution of the consumption in relation to the develop-
ments in the steel
In
particular,
it is recalled that the Community industry
the market
could not benefit
between 1999 and the IP where consumption increased
by 14 % coinciding with the upturn of the steel industry,
while the sales volume of
the Community industry
decreased by 17 %.

from the growth of

(66)

In view of the above, it cannot be argued that the injury
suffered by the Community industry has been caused by
any problem intrinsic to the Mo market itself.

(iv) Behaviour of the Community producers of FeMo

(67) One interested party alleged that the injury suffered by
the Community industry was due to the behaviour of
the two producers making up the Community industry
and that of the other two Community operators, which
were alleged to hold a collective dominant position in
the Community market, given their combined market
share. No information was provided on the behaviour of
these producers in the Community market other than
their combined market share.

(68)

It should firstly be noted that the mere fact that the four
companies producing FeMo in the Community hold a
market share of between 40 % and 44 % cannot be
presumed to be the cause of the injury suffered by the
Community industry, which is incidentally composed of
only two of the four companies, in the absence of any
indication that would prove that such injury is due to
the collective position of economic strength, enabling
the companies to behave to an appreciable extent inde-
pendently of their competitors, customers and ultimately
of consumers.

(69)

Secondly, the four companies producing FeMo in the
Community have a different position in the market: the
two companies making up the Community industry
primarily produce FeMo on their own account to be sold
to users, whereas the other two companies convert
MoO3 into FeMo on account of third parties (importers/
traders) against payment of a fee.

(70)

Finally, regarding the Community industry, no evidence
was found that would show that the injury it suffered
during the IP was attributable to any anti-competitive
practice on its side.

(71)

It is therefore concluded that the injury suffered by the
Community industry was not caused by its own anti-
competitive behaviour.

(v) Imports from other third countries

(72)

(73)

It has been argued that
the injury suffered by the
Community industry may be caused by imports from
Armenia and Iran.

It should be noted that imports from these two coun-
tries reached in the IP a market share of respectively
3,4 % (Armenia) and 1,8 % (Iran) at prices which were at
the same level or below those of the PRC. It should also
be noted that even if they may have contributed to the
injury suffered by the Community industry, given their
market share compared to the Chinese one (49,3 %),
their contribution remains marginal and does not break
the causal link between the imports from the PRC and
the material injury suffered by the Community industry.

(74)

In the view of the above and in the absence of any new
information on the imports from other third countries,
the provisional findings as described in recitals 108 to
113 of the Provisional Regulation are confirmed.

(vi) Conclusion

(75)

In view of the above it is confirmed that the imports
concerned taken in isolation have caused material injury
to the Community industry within the meaning of
Article 3(6) of the Basic Regulation as described in reci-
tals 117 to 118 of the Provisional Regulation.

H. COMMUNITY INTEREST

(76)

(77)

Some interested parties made allegations as regards the
possible impact of anti-dumping measures on the steel
relevant
industry without, however, providing the
supporting evidence.

In the absence of any new information on the analysis
of the Community interest aspects of the case, the provi-
sional findings as described in recitals 120 to 147 of the
Provisional Regulation are confirmed.

I. DEFINITIVE ANTI-DUMPING MEASURES

1. Injury elimination level

the profit margin
(78) One interested party argued that
regarded as a minimum that
the industry could be
expected to obtain in the absence of injurious dumping
is not appropriate as the level of profitability obtained
by the Community industry in comparable sectors is
higher.

L 35/8

EN

Official Journal of the European Communities

6.2.2002

(79)

(80)

(81)

(82)

It should be noted that when calculating the amount of
duty necessary to remove the effects of the injurious
dumping, it was considered that any measures should
allow the Community industry to cover its costs and
obtain overall a profit before tax that could be reason-
ably achieved by the Community industry under normal
conditions of competition, i.e. in the absence of dumped
imports. In this case, taking into account, in particular,
the level of profitability obtained in the sales of other
products of the same type produced by the Community
industry, it was found that a profit margin of 5 % of
turnover could be regarded as an appropriate minimum
which the Community industry could be expected to
obtain in the absence of injurious dumping.

It is to be noted that the arguments and corresponding
findings
regarding the adjustments claimed in the
context of the price undercutting, as well as the correc-
tion of clerical errors, were also taken into account in
the injury margin calculation.

In the absence of any new information or comment, the
methodology used for establishing the injury elimination
level as described in recitals 149 to 151 of the Provi-
sional Regulation is confirmed.

2. Definitive anti-dumping measures

In the light of the foregoing,
it is considered that a
definitive anti-dumping duty should be imposed at the
level of the injury margin found as it is lower than the
level of the dumping margin found, in accordance with
Article 9(4) of the basic Regulation.

(83) On the basis of the above, the proposed definitive duty
rate, expressed as a percentage of the cif Community
border price, customs duty unpaid,

is 22,5 %.

3. Undertaking

(84)

Following the disclosure of the provisional findings, one
exporting producer expressed an interest
in offering
price undertakings. As no individual determination of
the
dumping was established at

the definitive stage,

Commission services cannot accept such an individual
undertaking.

4. Collection of provisional duties

(85)

In view of the magnitude of the dumping margins found
and in the light of the level of the injury caused to the
Community industry, it is considered necessary that the
amounts
the provisional anti-
dumping duty, imposed by the Provisional Regulation,
should be definitively collected at the rate of the duty
definitively imposed,

secured by way of

HAS ADOPTED THIS REGULATION:

Article 1

A definitive anti-dumping duty is hereby imposed on
1.
falling within CN code
imports of
7202 70 00 and originating in the People's Republic of China.

ferro molybdenum,

2.
The rate of the definitive anti-dumping duty applicable to
the net, free-at-Community-frontier price, before duty, for the
product described in paragraph 1 shall be 22,5 %.

3.
Unless otherwise specified,
concerning customs duties shall apply.

the provisions

in force

Article 2

The amounts secured by way of the provisional anti-dumping
duty imposed by the Provisional Commission Regulation shall
be definitively collected at the rate of the duty set out in Article
1, or at the rate of the provisional duty where this is lower.
Any amount secured in excess of the definitive rate of anti-
dumping duties shall be released.

Article 3

This Regulation shall enter into force on the day following that
of its publication in the Official Journal of the European Communi-
ties.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 28 January 2002.

For the Council

The President

J. PIQUÉ I CAMPS