Council Regulation (EC) No 785/2005 of 23 May 2005 terminating the partial interim review of the anti-dumping measures applicable to imports of silicon originating in the People’s Republic of China
Date: 2005-05-23
Institutions: Council of the European Union
Subjects: China, anti-dumping legislation, semi-metal

26.5.2005

EN

Official Journal of the European Union

L 132/1

I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 785/2005

of 23 May 2005

terminating the partial interim review of the anti-dumping measures applicable to imports of silicon
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) (basic Regulation), and in particular
Articles 11(3) and 22(c) thereof,

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

Whereas:

A. PROCEDURE

1. Measures in force

(1)

(2)

(3)

(4)

In March 2004 following an expiry review, the Council, by Regulation (EC) No 398/2004 (2),
imposed a definitive anti-dumping duty on imports of silicon metal
(silicon) originating in the
People’s Republic of China (the PRC). The rate of the definitive duty applicable to the net, free-at-
Community frontier price, before duty, was 49 %.

2. Initiation

On 20 March 2004 the Commission announced through the publication of a notice (3) in the Official
Journal of the European Union, the initiation of a partial interim review of the measures applicable to,
inter alia, imports of silicon originating in the PRC pursuant to Articles 11(3) and 22(c) of the basic
Regulation.

The review was launched on the initiative of the Commission in order to examine whether, as a
consequence of the enlargement of the European Union on 1 May 2004 (enlargement), and bearing
in mind the aspect of Community interest, there was a need to adapt the measures in order to avoid
including users, distributors and
a sudden and excessively negative effect on interested parties,
consumers.

3. Product under consideration

The product under consideration is the same as in the investigation which led to the imposition of
the existing measures,
i.e. silicon metal originating in the PRC, classifiable within CN code
2804 69 00 (silicon content less than 99,99 % by weight). Purely by reason of the current classifi-
cation set out in the Customs nomenclature, it should read ‘silicon’. Silicon with a higher purity, that
is containing by weight not less than 99,99 % of silicon, used mostly in the electronic semiconductor
industry, falls under a different CN code and is not covered by this proceeding.

(1) OJ L 56, 6.3.1996, p. 1. Regulation as last amended by Regulation (EC) No 461/2004 (OJ L 77, 13.3.2004, p. 12).
(2) OJ L 66, 4.3.2004, p. 15.
(3) OJ C 70, 20.3.2004, p. 15.

L 132/2

EN

Official Journal of the European Union

26.5.2005

(5)

(6)

4. Investigation

The Commission officially advised the importers, the users and the exporters known to be concerned
and their associations, the representatives of the exporting country concerned and the Community
producers about the initiation of the investigation. Interested parties were given the opportunity to
make their views known in writing and to request a hearing within the time limit set out in the
notice of initiation.

China Chamber of Commerce of Metals, Minerals & Chemicals Importers & Exporters (CCCMC), the
Community industry association (Euroalliages),
the authorities of some new
Member States which joined the European Union on 1 May 2004 (the EU-10) and users of
silicon in the EU-10 made their views known in writing. All parties which so requested within
the time limit, and which demonstrated that there were particular reasons why they should be
heard, were granted the opportunity to be heard.

importers/traders,

(7)

The Commission sought and verified all the information it deemed necessary for the purpose of a
determination of the appropriateness of the measures in force.

B. FINDINGS OF THE INVESTIGATION AND TERMINATION OF THE PARTIAL INTERIM REVIEW

1. Imports of silicon from the PRC to the EU-10

(8)

The investigation has shown that an average yearly increase in import volumes of silicon from the
PRC into the EU-10, as reported by Eurostat, was around 13 % in 2001 and 2002. In 2003 import
volumes increased by around 54 % due to the significant
increase in the period October to
December.

(9)

Furthermore, an abnormal increase in import volumes of around 120 % as compared to the same
period of the previous year was found just before enlargement, that is to say January to April 2004.

(10)

The investigation has further shown that imports of silicon from the PRC into the EU-10 have
decreased after enlargement. The decrease could be explained by the abnormal increases in import
volumes prior to enlargement.

(11) Moreover, statistics on imports into the EU-10 in the post-enlargement period show that the decrease
of import volumes from the PRC coincides with a progressive increase of imports originating in
Norway and Brazil, as well as sales from the 15 Member States which composed the European Union
before enlargement (the EU-15).

2. Demand of silicon in the EU-10

(12) Demand for silicon in the EU-10 has been established on the basis of the total imports less total

exports. It is to be noted that there is no declared production of silicon in the EU-10.

(13)

Taking into account the abnormal increases in import volumes from the PRC before enlargement, it
was considered necessary to make some adjustments to the import volumes during 2003 and 2004
in order to determine what would normally be the import levels during these periods in the absence
of enlargement.

26.5.2005

EN

Official Journal of the European Union

L 132/3

(14)

In this regard, an average yearly increase in import volumes from the PRC in 2001 and 2002 was
found to have been 13 %. On this basis, the level of normal imports from the PRC in 2003 and
2004 was determined by applying a 13 % yearly increase to the import volumes in the previous
years, which could normally have been expected to be the import levels during these periods in the
absence of enlargement.

(15)

Following the same methodology, exports from the EU-10 in 2004 were estimated by adding to the
total exports in 2003 a normal increase of 80 % which was found to be the average yearly increase
in export volumes in 2002 and 2003.

Table 1

Demand of silicon in the EU-10

Year

2000

2001

2002

2003

Import to the EU-10

18 815

19 802

22 661

23 855
(estimated)

(tonnes)

2004
(estimated)

26 957

Export from the EU-10

37

6

84

153

275

Total demand in the EU-10

18 778

19 795

22 576

23 703

26 682

Source: Eurostat and estimated data for 2003 and 2004.

(16)

In the light of the above, it was found that demand in the EU-10 is around 6 % of the level of
demand in the EU-15 as estimated in the last expiry review investigation of the anti-dumping
measures on imports of silicon originating in the PRC made in Regulation (EC) No 398/2004.

(17)

(18)

3. Alternative sources of supply to meet the demand in the EU-10

The investigation has shown that there are enough potential sources of supply, alternative to the
supply from the PRC, available to meet the demand in the EU-10 even if the extension of the anti-
dumping duty from the EU-15 to the 10 new Member States would completely eliminate or result in
a decrease in imports from the PRC.

There are around 18 000 tones of potential supply of silicon from the EU-15. This calculation has
been made on the basis of the last expiry review investigation of the anti-dumping measures on
imports of silicon originating in the PRC. It was found that production in the EU-15 of silicon
amounted to around 148 000 tonnes in 2001. The same expiry review investigation found that there
were around 166 000 tonnes of production capacity in the EU-15, indicating spare capacities of
around 18 000 tonnes.

(19)

Furthermore, other potential sources of supply of silicon (not subject to anti-dumping duties) are,
among others, Norway (with spare capacity of 18 000 tonnes), Brazil, Canada and the USA.

(20) As outlined in recital 11, it was also found that in the post-enlargement period, that is to say May to
November 2004, for which reliable data has already been reported by Eurostat, imports from other
sources, in particular Norway and Brazil, as well as sales from the EU-15 gradually increased. Sales
from the EU-15 increased four-fold, import volumes from Norway increased five-fold and from Brazil
six-fold, as compared to the same period in 2003.

L 132/4

EN

Official Journal of the European Union

26.5.2005

Import volumes to the EU-10 from Norway, Brazil and sales from the EU-15

Table 2

Period of the year

Sales from the EU-15

Import volumes from
Norway

Import volumes from Brazil

May-November 2003

May-November 2004

2 070

7 772

238

1 144

152

975

(tonnes)

(21)

In the light of the above, there is no compelling reason to believe that there will be a shortage of
silicon on the EU-10 market.

4. Cost impact assessment

(22) As stated by various interested parties, silicon is an intermediary product used by only a handful of
in particular for the production of secondary

processing industries in the new Member States,
aluminium alloys.

(23) Aluminium producers in the EU-10 confirm that the average proportion of silicon consumed in the

production process of secondary aluminium alloys ranges between 3 % and 13,5 %.

(24)

The investigation has shown that the increase in the price of silicon in the EU-10 or a switch to other
alternative sources of supply is likely to have a minor effect on the production cost for the users in
the EU-10.

Increase in price of silicon from the PRC

(25)

In light of the abovementioned percentages of consumption of silicon in the production of secondary
aluminium alloys and given that the anti-dumping duty on imports of silicon from the PRC is 49 %,
the cost impact on secondary aluminium alloys producers would only range from 1,47 % to 6,6 % of
the total cost of production of secondary aluminium alloys.

Switch to other alternative sources of supply

(26)

Some interested parties indicated that, by extending the anti-dumping measures to imports in the EU-
10, alternative sources of supply of silicon had been sought but that such alternative sources had
resulted in an increase of silicon prices of around 34 %. In this regard, it was found that the cost
impact for secondary aluminium alloys producers would be even less and would fall in the range of
1 % to 4,6 % of the total cost of secondary aluminium alloys production.

5. Comments received from the interested parties

(27)

Several importers and users argued that there will be a lack of supply of silicon on the EU-10 market.
However, as outlined in recitals 11, 19 and 20, after enlargement import volumes from the PRC into
the EU-10 are progressively being replaced by silicon originating in the EU-15, Norway and Brazil.
There is therefore no reason to believe that there will be a shortage of silicon on the EU-10 market.

26.5.2005

EN

Official Journal of the European Union

L 132/5

(28) One of the users in the EU-10 as well as the Slovakian and Slovene authorities claimed that silicon
from other sources is different in terms of quality to that of the PRC. In this regard it is noted that
Regulation (EC) No 398/2004 in concluding the expiry review of
the anti-dumping measures
imposed on imports of silicon originating in the PRC stated that the silicon produced in the PRC
and exported to the Community, as well as the silicon produced in Norway and that manufactured in
the Community by the Community producers had the same basic physical and chemical character-
istics, and the same basic uses. Therefore they are considered to be like products within the meaning
of Article 1(4) of the basic Regulation. It was noted that no adjustments in the terms of quality of the
product had to be made. Therefore, there is no reason to believe that Chinese imports to the EU-10
replaced by the countries named above would differ in terms of quality. In addition, the increase of
the imports from other countries, as outlined in recitals 11, 19 and 20 of this Regulation, indicates
that the products are substitutable.

(29)

The same user also argued that the cost impact for secondary aluminium alloys producers is not
negligible given the low profit margins of the same industry. In this regard it is recalled that in recital
25 and 26 it was concluded that there will be a limited impact of the extension of anti-dumping
measures on the users of silicon metal in the EU-10 with a maximum 6,6 % increase in the total cost
of secondary aluminium alloys production. However, this was not a compelling reason to such extent
as to modify the existing measures by introducing transitional arrangements. Indeed, this impact was
not materially different from the impact estimated in the EU-15 during the investigation leading to
the imposition of the definitive measures in 2004, where it was concluded that the measures in force
would not have a significant effect on users.

6. Conclusion

(30) Given the limited impact of the duty on the cost of manufacturing of aluminium alloys in the EU-10
and the existence of alternative sources of supply to the EU-10, it is concluded that the extension of
the existing measures from the EU-15 to the EU-10 would not likely cause a sudden and excessively
negative effect on interested parties,
including users, distributors and consumers. Therefore, no
transitional arrangements are warranted,

HAS ADOPTED THIS REGULATION:

Article 1

The partial interim review of the anti-dumping measures applicable to imports of silicon originating in the
People’s Republic of China, initiated pursuant to Article 11(3) and 22(c) of Regulation (EC) No 384/96, is
hereby terminated.

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, 23 May 2005.

For the Council
The President

J.-L. SCHILTZ