Proposal for a Council Regulation extending the suspension of the anti-dumping duty imposed by Commission Decision No 2730/2000/ECSC on imports of coke of coal in pieces with a diameter of more than 80mm originating in the People’s Republic of China
Date: 2004-11-29
Institutions: European Commission
Subjects: China, anti-dumping duty, anti-dumping legislation, coke, originating product

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 29.11.2004 
COM(2004) 765 final 

Proposal for a 

COUNCIL REGULATION 

extending the suspension of the anti-dumping duty imposed by Commission Decision 
No 2730/2000/ECSC on imports of coke of coal in pieces with a diameter of more than 
80mm originating in the People’s Republic of China 

(presented by the Commission) 

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4. 

EXPLANATORY MEMORANDUM 

An anti-dumping duty of €32.6 per tonne was imposed on imports of coke of coal in 
pieces with a diameter of more than 80 mm (‘coke 80+’) originating in the People’s 
Republic of China (the ‘PRC’) in December 2000. 

Following  an  investigation  initiated  in  December  2002  pursuant  to  Article  11(3)  of 
the  basic  Regulation  aimed  at  increasing  the  anti-dumping  measures  in  force,  the 
Council  decided  in  May  2004  to  terminate  the  interim  review  and  the  Commission 
decided to suspend the anti-dumping duty for a period of nine months in the light of 
the market situation prevailing at that time.  

Since the suspension of the duty the Commission has monitored the market situation 
of  the  product  concerned.  The  investigation  has  shown  that,  despite  a  considerable 
increase  in  production  and  sales  on  the  Community  market  by  the  Community 
industry,  the  Chinese  coke  was  not  available  in  sufficient  quantities  to  meet  the 
demand  from  users,  namely  the  stone-wool  industry  and  foundries.  In  addition,  the 
price of coke 80+ has increased significantly and the Community industry was able 
to  partly  recover  from  the  injurious  dumping.  Based  on  the  findings  of  the 
monitoring,  it  is  considered  that  the  injury  caused  to  the  Community  industry  by 
imports  of  coke  80+  from  the  PRC  is  unlikely  to  resume  under  the  present 
circumstances.  In  the  light  of  the  above,  it is  considered  that  the  suspension  is  still 
justified as a temporary measure.  

It is proposed to continue suspending the application of the definitive anti-dumping 
duty on imports of coke of coal in pieces with a diameter of more than 80 mm for a 
further period of one  year, until  15  December  2005.  On  that  date  the  anti-dumping 
duty will expire unless a request for an expiry review, containing sufficient evidence 
that  the  expiry  of  the  measures  would  be  likely  to  result  in  a  continuation  or 
recurrence of dumping and injury, has been lodged. 

It is therefore proposed that the Council adopt the attached proposal for a Regulation which 
should be published in the Official Journal no later than 18 December 2004. 

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Proposal for a 

COUNCIL REGULATION 

extending the suspension of the anti-dumping duty imposed by Commission Decision 
No 2730/2000/ECSC on imports of coke of coal in pieces with a diameter of more than 
80mm 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 14(4) thereof, 

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

Whereas: 

A. 

PROCEDURE 

(1) 

(2) 

By Decision 2730/2000/ECSC(2), the Commission imposed a definitive anti-dumping 
duty of €32.6 per tonne on imports of coke of coal in pieces with a diameter of more 
than 80 mm (‘coke 80+’) originating in the People’s Republic of China (the ‘PRC’), 
falling within CN code ex 2704 00 19 (TARIC code 2704 00 19 10). 

By  Decision  2004/264/EC(3)  (the  ‘Decision’),  the  Commission  suspended  the 
definitive anti-dumping duty for a period of nine months, with effect from 20 March 
2004. 

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OJ  L  56,  6.3.1996,  p.  1.Regulation  as  last  amended  by  Regulation  (EC)  N°  461/2004  (OJ  L77, 
13.3.2004, p.12) 
OJ L 316, 15.12.2000, p. 30. 
OJ L 81, 19.3.2004, p. 89. 

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(3) 

(4) 

(5) 

(6) 

B. 

GROUNDS FOR THE EXTENSION OF THE SUSPENSION 

Article 14(4) of the basic Regulation provides for the possibility of suspension of anti-
dumping  measures  in  the  Community  interest  on  the  grounds  that  market  conditions 
have  changed  temporarily  to  an  extent  that  injury  would  be  unlikely  to  resume  as  a 
result  of  such  a  suspension.  The  anti-dumping  measures  may  be  suspended  by  a 
decision  of  the  Commission  for  a  period  of  nine  months.  Article  14(4)  of  the  basic 
Regulation further specifies that the suspension may be extended for a further period, 
not exceeding one year, if the Council so decides on a proposal from the Commission.  

Following  the  suspension  of  the  definitive  anti-dumping  duty  by  the  Decision,  the 
Commission has, in accordance with recital (15) of the Decision, continued to monitor 
the market situation of coke 80+. In addition to the analysis of the imports from the 
PRC, a questionnaire was sent to all parties concerned requesting data on production, 
sales in volume and in prices on the Community market and profitability for 2003 and 
the first six months in 2004. 

Replies  were  received  from  both  the  complainant  and  user  industries.  Four 
Community producers co-operated: three from EU-15 (complainant industry) and one 
from  Poland.  Twelve  companies  representing  both  the  stone-wool  and  foundry 
industries also co-operated. 

Imports from the PRC 

As  to  the  volume  of  imports  into  the  Community  from  the  PRC,  it  was  found  that 
during  the  first  six  months  of  2004  the  volume  of  imports  of  the  product  concerned 
had decreased by 4% compared to the same period in 2003. Based on the experience 
of previous years, it seems, however, that more imports are normally made during the 
second half of the year. Indeed, in this case the comparison of the volume of imports 
between January and June 2004 and the last six months of 2003 shows a decrease of 
11%. 

(7)  With regard to prices, the average price of coke 80+ during the first 6 months in 2004 
increased by 107% compared to the average price in 2003. On average, the unit price 
was €124 per tonne in 2003 and €256 per tonne during the first six months of 2004. It 
is  noted  that  during  the  first  five  months  of  2004  there  was  a  slight  increase,  from 
€110 to €140, and that in June the price rose to €403.  

Imports from other countries 

(8) 

During  the  original  investigation,  the  PRC  main  competitors  were  Poland  and  the 
Czech Republic. Based on Eurostat, total imports from these countries were 924 602 
tonnes compared to 318 005 tonnes from the PRC in 2003. These  countries  are  now 
part of the Community industry and their data have been taken into consideration. 

Situation of the Community producers 

(9) 

The  production  among  the  Community  producers  (EU-15)  increased  from  442 397 
tonnes in 2003 to an estimated 543 920 tonnes in 2004, i.e. by 23%. At the same time 
the sales volume increased by 35% and prices by 8%. The Community industry seems 

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to have started to recover relatively well from the previous injurious situation, as the 
average profit was 8.5% in 2003 and 12.4% at the end of June 2004. 

(10)  With  regard  to  the  new  EU  Member  States,  production  of  coke  80+  is  concentrated 
mainly in Poland and the Czech Republic. One of the Polish producers co-operated in 
this  proceeding.  EU-25  production  among  the  co-operating  companies  increased  by 
30%  from  2003  to  2004.  At  the  same  time  the  sales  volume  increased  by  39%  and 
sales  prices  by  12%.  The  average  profit  for  EU-25  producers  was  13%  in  2003  and 
19.1% in 2004. 

Situation of the user industry (stone-wool and foundry industry) 

(11)  Prices of coke 80+ imported from the PRC by the user industry increased from €143/t 
in  2003  to  €255/t  in  2004  (April-June),  i.e.  by  78%.  The  volume  of  Chinese  coke 
purchased  by  these  users  decreased  from  158 730  tonnes  in  2003  to  an  estimated 
volume of 65 114 tonnes in 2004, i.e. by 59%.  

(12)  Users  still  maintain  that  the  supply  of  coke  80+  does  not  meet  the  demand  on  the 
Community  market,  despite  significant  increases  in  production  and  sales  by  the 
Community industry. In addition, they argue that Chinese coke 80+ is not available in 
sufficient quantities and even then only at very high prices.  

C. 

CONCLUSION 

(13)  From  the  above,  it  can  be  seen  that  the  market  is  in  the  same  situation  as  when  the 
measures were suspended. Indeed, given the temporary change in market conditions, 
and in particular the high level of prices of the product concerned, which are far above 
the  injurious  level  found  in  the  original  investigation,  together  with  the  shortage  of 
coke 80+ supply, it is considered that the injury caused to the Community industry by 
imports  of  coke  80+  from  the  PRC  is  unlikely  to  resume  under  the  present 
circumstances,  and  that  an  extension  of  the  suspension  would  be  in  the  Community 
interest. Consequently, the conditions for the suspension continue to be fulfilled. 

(14) 

In view of the above findings, it is proposed that the suspension of the anti-dumping 
duty  on  imports  of  coke  of  coal  in  pieces  with  a  diameter  of  more  than  80  mm  be 
extended  for  a  further  period  of  one  year,  pursuant  to  Article  14(4)  of  the  basic 
Regulation.  

(15) 

It should be noted that at the time of the expiry of this extended suspension, the anti-
dumping  duty  in  force  will  have  lapsed,  unless  a  request  for  an  expiry  review  is 
lodged. 

(16)  All interested parties were informed of the essential facts and considerations leading to 
this conclusion. On the grounds that the coke market is very volatile the Community 
industry  requested  an  extension,  limited  to  9  months,  of  the  suspension  of  the  anti-
dumping  duty.  In  this  respect  it  was  considered  that  a  shorter  period  was  not 
appropriate  in  the  present  context,  since  pursuant  to  Article  14  (4)  of  the  basic 
Regulation,  measures  may  be  reinstated,  at  any  time  and  after  consultation,  if  the 
reason for suspension is no longer applicable.  

(17)  For  the  period  of  the  suspension  the  Commission  will  continue  to  monitor  the 

development of imports of coke 80+ into the Community. 

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HAS ADOPTED THIS REGULATION: 

Article 1 

The  suspension  of  the  definitive  anti-dumping  duty  imposed  by  Commission  Decision 
2730/2000/ECSC is hereby extended until 15 December 2005. 

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

Article 2 

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

Done at Brussels, 

For the Council 
The President 

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