2006/714/EC: Commission Decision of 23 October 2006 suspending the definitive anti-dumping duty imposed by Regulation (EC) No 215/2002 on imports of ferro molybdenum originating in the People’s Republic of China
Date: 2006-10-23
Institutions: European Commission
Subjects: China, anti-dumping duty, anti-dumping legislation, ferro-alloy, import, originating product

24.10.2006

EN

Official Journal of the European Union

L 293/15

COMMISSION DECISION

of 23 October 2006

suspending the definitive anti-dumping duty imposed by Regulation (EC) No 215/2002 on imports
of ferro molybdenum originating in the People’s Republic of China

(2006/714/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

that the anti-dumping measures concerned may be rein-
stated at any time if the reason for suspension is no
longer applicable.

Having regard to the Treaty
Community,

establishing the European

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,

After consulting the Advisory Committee,

Whereas:

(1)

(2)

(3)

A. PROCEDURE

The Council, by Regulation (EC) No 215/2002 of 28
January 2002 (2),
imposed a definitive anti-dumping
duty on imports of
ferro molybdenum originating in
the People’s Republic of China (PRC), falling under CN
code 7202 70 00 (the product concerned). The rate of
the anti-dumping duty is 22,5 %.

the original

Information on a change of market conditions which
occurred after
investigation period (i.e.
from 1 October 1999 to 30 September 2000), and
which might
the measures
justify the suspension of
currently in force,
in accordance with Article 14(4) of
the basic Regulation, was provided to the Commission.
Consequently, the Commission examined whether such
suspension was warranted.

B. GROUNDS

Article 14(4) of the basic Regulation provides that, in the
Community interest, anti-dumping measures may be
suspended on the grounds that market conditions have
temporarily changed to an extent that injury would be
unlikely to resume as a result of
such suspension,
provided that the Community industry has been given
an opportunity to comment and these comments have
been taken into account. Article 14(4) further specifies

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

(EC) No 2117/2005 (OJ L 340, 23.12.2005, p. 17).

(2) OJ L 35, 6.2.2002, p. 1.

(4)

(5)

(6)

(7)

(8)

Eurofer, on behalf of a number of users of the product
concerned, has alleged that in the time since the investi-
the market situation has changed. The
gation period,
investigation and other
complainants in the original
Community producers of the product concerned, repre-
sented by Euroalliages, commented on these allegations,
and an adversarial exchange of views took place.

the measures

Since the definitive imposition of
in
February 2002, Chinese imports have decreased substan-
tially. Eurostat statistics point to a drop from ca. 12 KT
in 2001 to virtually no imports in the period 1 April
2005-31 March 2006. Euroalliages calculated a higher
degree of penetration with imports reaching over 1 KT
based on the allegation that certain imports declared as
having a Dutch origin were in reality Chinese. In any
event, even under this assumption, the very significant
drop in import penetration is clear.

Regarding imports from other third countries, these have
increased from ca. 2,7 KT to 10,7 KT, thus compensating
partially the drop in Chinese imports. Consumption has
increased by 14 %.

Market prices in the Community have increased from ca.
EUR 8/kg in the original IP to ca. EUR 80/kg in 2005
and are in the range of ca. EUR 60/kg in 2006. These
trends can also be found in other major markets across
the world.

i.e.,

the capacities

Out of the factors claimed by the parties the main expla-
nation for this price increase seems to be a shortage in
to transform
roasting capacities,
molybdenum concentrate
into molybdenum oxide
(which is then converted into ferro molybdenum). This
the price
driving factor explains
this
increases and the demand-supply imbalance that
has generated in the Community market. On the basis
of the information presented, it appears that the roasting
capacity shortfall will disappear in all likelihood in the
course of 2007 as a result of new roasting capacity
coming on stream.

to a large extent

L 293/16

EN

Official Journal of the European Union

24.10.2006

(9) With regard to the Community industry, it is to be noted
that since the imposition of the measures, the situation
of the Community industry has improved. The sales and
production volumes have increased by 25 % and 5 %
respectively, reaching a market share of ca. 26 %. The
profit
the
Community industry has not consistently achieved the
normal 5 % profit level established by the original inve-
stigation, the Community industry has, however, gained
up to 5 percentage points and become profitable.

improved.

Although

situation

also

(14)

(15)

(10)

Chinese export prices to third countries have followed
the same upward trend described above indicating that
should measures be suspended it is unlikely that they
would decrease in the very short
term to such an
extent that injury would resume.

for

that

therefore

considers

Commission

all
The
suspending the anti-dumping duty
requirements
imposed on the product
in
accordance with Article 14(4) of the basic Regulation.
Consequently, the anti-dumping duty imposed by Regu-
lation (EC) No 215/2002 should be suspended for a
period of nine months.

concerned are met,

the development of
The Commission will monitor
imports and the prices of
the product concerned.
Should a situation arise at any time in which increased
volumes at dumped prices of
the product concerned
from the PRC resume and consequently cause injury to
the Community industry, the Commission will reinstate
the
the present
suspension,

anti-dumping

duty by

repealing

(11) No indications have been found as

to why the

suspension would not be in the Community interest.

HAS ADOPTED THIS DECISION:

C. CONCLUSION

Article 1

(12)

investigation,

In conclusion, given the temporary change in market
conditions, and in particular the high level of prices of
the product concerned practised on the Community
market, which is far above the injurious level found in
the original
together with the alleged
it
demand-supply imbalance of the product concerned,
is considered that the injury linked to the imports of the
product concerned originating in the PRC is unlikely to
resume as a result of
is therefore
proposed to suspend for nine months the measures in
force in accordance with Article 14(4) of the basic Regu-
lation.

the suspension.

It

(13)

Pursuant to Article 14(4) of the basic Regulation, the
Commission has informed the Community industry of
its intention to suspend the anti-dumping measures in
force. The Community industry has been given an oppor-
tunity to comment. The Community industry did not
oppose the suspension of
the anti-dumping measures
in force.

The definitive anti-dumping duty imposed by Council Regu-
lation (EC) No 215/2002 on imports of ferro molybdenum,
falling within CN code 7202 70 00, and originating in the
People's Republic of China is hereby suspended for a period
of nine months.

Article 2

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

Done at Brussels, 23 October 2006.

For the Commission

Peter MANDELSON
Member of the Commission