Commission Regulation (EC) No 1129/2008 of 14 November 2008 imposing a provisional anti-dumping duty on imports of certain pre- and post-stressing wires and wire strands of non-alloy steel (PSC wires and strands) originating in the People’s Republic of China
Date: 2008-11-14
Institutions: European Commission
Subjects: China, EU Member State, anti-dumping duty, electric cable, export, import, production, steel, trade-mark law, wire

15.11.2008

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Official Journal of the European Union

L 306/5

COMMISSION REGULATION (EC) No 1129/2008

of 14 November 2008

imposing a provisional anti-dumping duty on imports of certain pre- and post-stressing wires and
wire strands of non-alloy steel (PSC wires and strands) originating in the People’s Republic of China

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

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 7 thereof,

After consulting the Advisory Committee,

Whereas:

A. PROCEDURE

1. Initiation

On 3 January 2008,
the Commission received a
complaint concerning imports of certain pre- and post-
stressing wires and wire strands of non-alloy steel (PSC
wires and strands) originating in the People’s Republic of
China (PRC) lodged pursuant to Article 5 of the basic
Regulation by Eurostress Information Service (ESIS) (the
complainant) on behalf of producers
representing a
major proportion, in this case more than 57 %, of the
total Community production of PSC wires and strands.

The complaint contained prima facie evidence of dumping
injury caused by such dumping which
and of material
was considered sufficient
to justify the opening of a
proceeding.

the proceeding.

Community producers known to be concerned of the
initiation of
Interested parties were
given the opportunity to make their views known in
writing and to request a hearing within the time limit
set in the notice of initiation. All interested parties who
so requested and showed that
there were particular
reasons why they should be heard were granted a
hearing.

(5)

(6)

(7)

(MET) or

In order to allow exporting producers to submit a claim
for market economy treatment
individual
treatment (IT), if they so wished, the Commission sent
claim forms to the Chinese exporting producers known
to be concerned and to the authorities of the PRC. Eight
related
including
exporting
companies, requested MET pursuant to Article 2(7) of
the basic Regulation, or
IT should the investigation
establish that they do not meet the conditions for MET.

producers,

groups

of

the apparent high number of exporting
In view of
producers in the PRC,
importers and producers in the
Community, the Commission indicated in the notice of
initiation that sampling methods might be applied for the
determination of dumping and injury, in accordance with
Article 17 of the basic Regulation.

all

exporting

if so,
in

In order to enable the Commission to decide whether
to select a
sampling would be necessary and,
sample,
PRC,
the
producers
Community importers and Community producers were
asked to make themselves known to the Commission
and to provide, as specified in the notice of initiation,
related to the
basic information on their activities
investigation period
concerned during the
product
(1 January 2007 to 31 December 2007).

On 16 February 2008, a proceeding was initiated by the
publication of a notice of initiation in the Official Journal
of the European Union (2) (the ‘notice of initiation’).

(8)

Given the limited number of responses to the sampling
exercise, it was decided that sampling was not necessary
for Chinese exporting producers nor importers within the
Community.

2. Parties concerned by the proceeding

officially

The Commission
exporting
producers in the PRC, importers, traders, users and asso­
ciations known to be concerned, the authorities of the
PRC, the complainant Community producers and other

advised

the

(1) OJ L 56, 6.3.1996, p. 1.
(2) OJ C 43, 16.2.2008, p. 9.

(9) With regard to the Community producers, given the
number of responses received to the sampling exercise,
the Commission decided to select a sample in accordance
with Article 17 of the basic Regulation. This sample of
seven companies located in seven Member States was
based on the largest representative volume of production
and sales of the Community industry which could be
reasonably investigated within the time available.

(1)

(2)

(3)

(4)

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to

the

exercise,

(10) Questionnaires were sent to all companies in the PRC
and all users and importers in the Community who
responded
those
sampling
Community producers selected for sampling and to all
other parties known to be concerned. Replies were
received from seven exporting producers and groups of
exporting producers
sampled
in the PRC,
producers in the Community, four importers and seven
users. No questionnaire replies were received from other
interested parties.

from all

and

(11)

The Commission sought and verified all the information
deemed necessary for a determination of dumping,
resulting injury and Community interest and carried
out verifications at
following
companies:

the premises of

the

(a) Producers in the Community

— Carrington Wire Limited (Carrington), Elland, UK

— DWK Drahtwerk Koln GmbH,

(DWK), Köln,

Germany

— Fapricela — Indústria de Trefilaria, SA (Fapricela),

Anca, Portugal

— Italcables, Spa (Italcables) Brescia, Italy

— Nedri Spanstaal, BV (Nedri), Venlo, Netherlands

— Tycsa — Trenzas y Cables de Acero PSC, S.L.

(Tycsa), Santander, Spain

— Voestalpine Austria Draht, GMBH (Voestalpine),

Brück, Austria

(c)

Importers in the Community

— Ibercordones Pretensados SL, Madrid, Spain

— Megasteel LLP (Megasteel), Malmesbury, UK

(d) Users in the Community

— Tarmac Ltd (Tarmac), Wolverhampton, UK

— Vanguard Hormigon (Vanguard), Madrid, Spain.

(12)

In view of the need to establish a normal value for
exporting producers in the PRC to which MET might
not be granted, a verification to establish normal value
on the basis of data from an analogue country, Turkey in
this case, took place at the premises of the following
company:

Producer in Turkey

— Çelik Halat ve Tel Sanayii A.Ș., Izmit, Turkey.

3. Investigation period

(13)

The investigation of dumping and injury covered the
period from 1 January 2007 to 31 December 2007
(‘investigation period’ or ‘IP’). The examination of the
trends relevant for the assessment of injury covered the
period from 1 January 2004 to the end of the investi­
gation period (period considered).

(b) Exporting producers in the PRC

B. PRODUCT CONCERNED AND LIKE PRODUCT

— Hubei Fuxing Science and Technology Co. Ltd,

Hubei

(14)

— Kiswire Qingdao, Ltd, Qingdao

— Liaoning Tongda Building Material Industry Co.,

Ltd, Liaoyang

— Ossen MaanShan Steel Wire

and Co. Ltd,
Maanshan, and Ossen Jiujiang Steel Wire Cable
Co. Ltd, Jiujiang

— Silvery Dragon PC Steel Products Group Co., Ltd,

Tianjin

1. Product concerned

The product concerned is certain wire of non-alloy steel
(not plated or not coated or plated or coated with zinc)
and stranded wire of non-alloy steel
(whether or not
plated or coated), containing by weight 0,6 % or more
of carbon, with a maximum cross-sectional dimension
exceeding 3 mm, originating in the People’s Republic
of China (the product concerned), normally declared
within CN codes
ex 7217 20 90,
ex 7312 10 61, ex 7312 10 65 and ex 7312 10 69. The
products are commercially known as pre- or post-
stressing wires and wire strands (PSC wires and strands).

ex 7217 10 90,

— Tianjin Shengte Prestressed Concretes Steel Strand

Co., Ltd, Tianjin

— Wuxi Jinyang Metal Products Co., Ltd, Jangyian

(15)

The most common applications
for PSC wires and
strands are for concrete reinforcement, for suspension
elements and for stay-cable bridges. The product
is
made by drawing of wire of high carbon steel.

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(16)

rope

the product

importers
scope be

association
The Community wire
requested that
reduced by
excluding plated or coated strands, strands of more
than seven wires, and strands of a diameter below 6,8
the
mm and above 15,7 mm on the grounds that
complainants would not suffer any material
injury due
to imports of these types of products since the market
share represented by these types of products as a whole
does not exceed 3 % of
the total production in the
Community. However, those product types cannot be
excluded merely on the grounds that they represent a
small share of the production. The investigation found
that these and other types of the product concerned all
share the same basic physical and technical characteristics
same purposes.
and
Furthermore, depending on the producing company,
the share in production of the types mentioned above
can be substantially higher.

basically

used

the

are

for

(17)

It is therefore provisionally concluded that all types of
PSC wires and strands as described in the notice of
initiation constitute a single product for the purpose of
this investigation.

2. Like product

(18)

the basic physical and
The investigation showed that
technical characteristics of
the PSC wires and strands
produced and sold by the Community industry in the
Community, PSC wires and strands produced and sold
on the domestic market in Turkey, which served as an
analogue country, and PSC wires and strands produced in
the PRC and sold to the Community have essentially the
same basic physical and technical characteristics and the
same basic use.

(19) One Community importer claimed that it is currently
importing an innovative product
type (Spiral Ribbed
Wire) which is not produced in the Community. This
claim was investigated and it was found that:

— the imported product

type and the Community
produced PSC wires and strands shared the same or
similar physical properties
shape,
volume, weight and presentation. The differences
between the product types did not affect the basic
characteristics of the product nor their perception by
the user/consumer as a single product category,

such as

size,

— the imported product

type and the Community
produced PSC wires and strands were sold via
similar or identical sales channels. Price information
was readily available to buyers and the imported
product
the Community
type and the product of
producers competed mainly on price, and

(20) All

the aforementioned PSC wires and strands are
therefore considered to be alike within the meaning of
Article 1(4) of the basic Regulation.

C. DUMPING

1. Application of Article 18 of the basic Regulation

(21)

In the case of two exporting producers it was found that
false and misleading information was provided in their
Market Economy Treatment (MET) claims and during the
inspection at
exporting
producer
failed to reply to the anti-dumping ques­
tionnaire after the MET verification visit at the premises
of the company.

their premises. One other

(22) All three companies were informed about the proposed
application of Article 18 of the basic Regulation and
were given the opportunity to comment.

(23)

Two of
the companies that had provided false and
misleading information failed to submit any decisive
arguments or to provide evidence which might reverse
the decision to apply this Article. The Commission
therefore has considered it appropriate to reject
the
MET claims of these companies and base its findings
on facts available.

(24)

The third company did not react to the above disclosure.
It was concluded that the company no longer wished to
cooperate with the proceeding,
and findings will
therefore be based on facts available.

2. Market Economy Treatment (MET)

(25)

Pursuant to Article 2(7)(b) of the basic Regulation,
in
anti-dumping investigations concerning imports originat­
ing in the PRC, normal value shall be determined in
accordance with points 1 to 6 of the said Article for
those producers which are found to meet the criteria
laid down in Article 2(7)(c) of the basic Regulation.

(26)

Briefly, and for ease of reference only, the MET criteria
are set out in summarised form below:

(a) business decisions and costs are made in response to
market signals and without significant State inter­
ference; costs of major inputs substantially reflect
market values;

— the imported product

type and the Community
produced PSC wires and strands both serve the
same or similar end-uses.

(b) firms have one clear set of basic accounting records
which are independently audited in line with inter­
national accounting standards and are applied for all
purposes;

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(c)

there are no significant distortions carried over from
the former non-market economy system;

(d) bankruptcy

and property

laws

guarantee

legal

certainty and stability;

(e) exchange rate conversions are carried out at market

rates.

generally accepted accounting standards. In particular, the
depreciation of fixed assets was not correctly applied: the
company began the depreciation of assets only in 1997,
including of assets that were acquired in 1994. Finally,
the company failed to prove the absence of possible
distortions carried over from the former non-market
economy system. In particular, the company could not
provide any evidence during the verification regarding
the conditions under which their assets had been
transferred,
obtained, and that
(including write-offs) and depreciated
accounted for
according
submission
value. The
provided by the company after disclosure did not
provide any new information or evidence to alter these
findings, therefore they are provisionally confirmed.

they had been valued,

to their market

(27)

Following the initiation of the proceeding, seven Chinese
exporting
to
Article 2(7)(b) of the basic Regulation and replied to
the MET claim form within the given deadline.

requested MET

producers

pursuant

(28)

For three Chinese exporting producers, Article 18 of the
basic Regulation had to be applied (see recitals 23 to 25
above), and therefore their claims for MET were rejected.

(29) As regards the remaining four companies or groups of
Chinese exporting producers, it was established that none
of them met all five MET criteria.

(30)

The investigation established that one Chinese exporting
producer could not show that it met criterion 3 as it was
found that the price paid by the company for land-use
rights did not substantially reflect market values and thus
represented a significant distortion carried over from the
former non-market economy system which influenced
the company’s financial situation.

(31) After disclosure of

the above findings,

the company
submitted that the low land-use price was a relatively
the cost of production and therefore
small part of
criterion 3 should be considered as fulfilled. However,
it is considered that the arbitrary valuation of land-use
rights
there are significant distortions
from the former non-market economy
carried over
further evidence
system. Therefore,
that
the
market or that it was set according to business consid­
erations, the argument is provisionally rejected.

the land-use price was

in the absence of

representative

indicates

that

for

(32) A second company could not show that it met criteria 1
to 3. Firstly, its decisions regarding sales were not made
in response to market signals reflecting supply and
demand and without significant State interference.
In
particular, the company was found to benefit from an
income tax reduction conditional upon exporting at least
70 % of the production. Secondly, the accounting system
to be in line with
of

the company was found not

(33) A third company was not able to show that

indirect interference by the State. Secondly,

it met
criteria 1 to 3. Firstly,
the investigation showed that
there was a serious overcapacity both in terms of
labour and production, despite which the company
continued to invest in additional capacity. It was also
considered that the relatively short period of validity of
its business licence could represent an obstacle for long-
term business decisions and planning and is an indication
of
it was
established that the accounting system of this company
made no provision for bad debts; there was no clear
policy regarding different fixed assets categories; there
were errors in the depreciation amounts; unjustified
provisions were found; and there were loans which
these clearly
were not supported by evidence. All of
influenced the company’s costs. However, none of these
issues were mentioned in the auditor’s report,
thus
rendering
and the work
accounts
performed by the auditors unreliable.

company’s

the

(34)

The company also failed to demonstrate that
it met
criterion 3, where it was found that there are significant
distortions carried over from the former non-market
economy system.
In particular, the company failed to
produce any evidence concerning its land-use rights,
loans, origin of fixed assets, paid-in capital and capital
increase.

(35) A fourth exporting producer, comprising a group of
related companies could not be granted MET because it
was found that the group did not fulfil criteria 1 to 3. In
particular the group failed to prove that its decision-
making process was free from significant State inter­
ference. Additionally, the accounting records were not
in line with international accounting standards and
several accounting errors were detected which made the
external
there were
distortions carried over from the non-market economy
system, in particular regarding transfer of ownership and
land-use rights. The submission made by the group after
disclosure did not provide any new information or
evidence to change these findings,
therefore they are
provisionally confirmed.

audit unreliable.

Furthermore,

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(36)

concluded that no Chinese
it was
Consequently,
exporting producer demonstrated that
fulfilled the
it
conditions set out in Article 2(7)(c) of the basic Regu­
lation.

(44)

3. Individual treatment (IT)

The Commission examined the claim of the interested
party and concluded that Turkey met the criteria for an
appropriate analogue country. Indeed, even though there
is only one producer of the like product in this country
and there are anti-dumping measures in force for imports
from the PRC and Russia, imports from a variety of third
countries into Turkey are substantial and account for
more than 50 % of the Turkish market, thus ensuring
conditions of competition on this market.

(37)

if any,

to Article 2(7)(a) of

Pursuant
the basic Regulation, a
is established for countries
countrywide duty,
falling under the provisions of that Article, except in
those cases where companies are able to demonstrate
that they meet all criteria set out in Article 9(5) of the
basic Regulation to be granted IT.

(38)

The exporting producers which did not meet the MET
criteria had also all claimed IT in the event that they were
not granted MET.

exporting

(39) On the basis of information available, it was found that
the
three Chinese
requirements for IT as set out in Article 9(5) of the
basic Regulation. However,
it was concluded that the
fourth exporting producer could not be granted IT, as
potential State interference in its price setting could not
be ruled out.

producers met

all

4. Normal value

4.1. Analogue country

(40) According to Article 2(7)(a) of the basic Regulation, in
economies in transition, normal value for exporting
producers not granted MET has to be established on
the basis of the price or constructed value in a market
economy third country (analogue country).

(41)

In the notice of initiation, Turkey was proposed as an
appropriate analogue country for the purpose of estab­
the PRC. The Commission
lishing normal value for
to comment on this
invited all
proposal.

interested parties

analogue

since there was only one producer

(42) One interested party submitted comments proposing
country. They
Thailand as an alternative
in
argued that
Turkey, which was
anti-dumping
measures, this producer had a quasi-monopoly position
on the Turkish market. The Commission contacted
known companies in Thailand as well as other third
countries known to have producers of the like product.
However, no questionnaire replies were received from
those producers.

protected

by

(45)

the above,
that Turkey

therefore provisionally
In view of
an appropriate
concluded
analogue country in accordance with Article 2(7)(a) of
the basic Regulation.

it
constitutes

is

4.2. Methodology applied for

the determination of normal

value

(46)

to Article 2(7)(a) of

the basic Regulation,
Pursuant
normal value for the PRC was established on the basis
of verified information received from the cooperating
producer in the analogue country.

(47) An examination was made as to whether the domestic
sales of each type of the product concerned sold in the
analogue country could be regarded as having been made
in the ordinary course of
trade in accordance with
Article 2(4) of the basic Regulation, by establishing the
proportion of profitable sales to independent customers
of the type in question.

(48)

(49)

For most of the product types, it was considered that the
domestic price of those types does not provide an appro­
priate basis for the establishment of the normal value,
since the volume of the profitable sales represented less
than 10 % of the total sales volume.

For those types, in accordance with Article 2(3) of the
basic Regulation, the normal value was constructed on
the basis of the producer’s own cost of manufacturing
plus a reasonable amount for selling, general and admin­
istrative (SG&A) costs and for profit. The latter was based
on the SG&A and profit for the same general category of
products sold in the domestic market by the Turkish
producer, according to Article 2(6)(b) of the basic Regu­
lation.

(43)

The producer in Turkey cooperated fully with the inves­
tigation by submitting a full questionnaire response and
accepting a verification visit.

(50)

For one product type, for which the volume of profitable
sales of a product type represented less than 80 % but
more than 10 % of the total sales volume, normal value
was based on the actual domestic price, calculated as
weighted average of profitable sales of that type.

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4.3. Export price

5.2. All other exporting producers

(51)

In all cases where the product concerned was exported to
independent customers in the Community, the export
price was established in accordance with Article 2(8) of
the basic Regulation, namely on the basis of export
prices actually paid or payable.

(52) One exporting producer made some export sales via a
related importer in the Community.
In this case the
export price was constructed, pursuant to Article 2(9)
of the basic Regulation, on the basis of the price at
which the imported products were first resold to an
independent buyer, duly adjusted for all costs incurred
between importation and resale, as well as a reasonable
margin for SG&A and profits. The related importer’s own
SG&A costs were used, but the profit margin was estab­
lished on the basis of the information available from
cooperating unrelated importers.

4.4. Comparison

(53)

The comparison between normal value and export price
was made on an ex-factory basis.

(54)

For the purpose of ensuring a fair comparison between
the normal value and the export price, due allowance in
the form of adjustments was made for differences
affecting prices and price comparability in accordance
with Article 2(10) of the basic Regulation. For all inves­
tigated companies (cooperating exporting producers and
the producer in the analogue country) allowances for
differences
freight and insurance
costs, VAT, bank charges, packing costs, credit costs
and commissions were granted where applicable and
justified.

in transport costs,

5. Dumping margins

5.1. Cooperating producers granted IT

(55)

For those companies granted IT, the weighted average
normal value was compared with the weighted average
export price as provided for in Article 2(11) and (12) of
the basic Regulation.

(56)

The provisional weighted average dumping margins
expressed as a percentage of
the CIF Community
frontier price, duty unpaid, are:

(57) With regard to all other Chinese

exporters,

the
Commission first established the level of cooperation. A
comparison was made between the total export quan­
tities indicated in the questionnaire replies of the coop­
erating exporting producers and total imports from the
PRC as derived from Eurostat import statistics. The level
of cooperation was found to be low, i.e. 24 %.

(58)

the dumping margin found for

It was therefore considered appropriate to determine the
countrywide dumping margin as the weighted average of
the cooperating
(i)
exporter to which neither MET nor IT was granted,
and (ii) the highest dumping margins for representative
product types of the same exporter, since there were no
indications that the non-cooperating exporting producers
dumped at a lower level.

(59) On this basis, the countrywide level of dumping was
the CIF

established
provisionally
Community frontier price, duty unpaid.

50,2 % of

at

D. COMMUNITY INDUSTRY

1. Production

(60) Given the definition of Community industry (CI) as set
out in Article 4(1) of the basic Regulation, the output of
the following Community producers was considered for
establishing the volume of Community production:

— eleven producers on whose behalf the complaint was

lodged,

— seven producers which supported the proceeding,

— four other Community producers

listed in the
complaint, which provided data on their production
and sales but were neither
complainants nor
supporting the proceeding but did not oppose the
present investigation.

Consequently, CI consists of these 22 companies for the
purpose of the injury analysis as a whole.

Company

Kiswire Qingdao, Ltd

Wuxi Jinyang Metal Products Co., Ltd

Liaoning Tongda Building Material Industry Co.,
Ltd

Provisional
dumping
margin

26,8 %

47,6 %

41,3 %

2. Sample

(61)

Seven companies among the 11 Community producers
supporting the complaint were selected for the sample
on the basis of
their sales
volumes, their various product types and their location
in the Community.

the representativeness of

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(62) However, one of the companies originally selected for the
sample did not cooperate with the sampling exercise by
completing the questionnaire sent to them. They were
therefore excluded from the sample and were replaced
by a company supporting the complaint, which was the
third most representative company in terms of sales
volumes.

(64)

(63)

These
seven
accounted for 51 % of
Community industry.

cooperating

Community

the total production of

producers
the

E. INJURY

1. Preliminary remark

trends

In view of the fact that sampling was used with regard to
the Community industry, injury has been assessed on the
basis of
concerning production, production
capacity, capacity utilisation, employment, productivity,
sales, market share and growth collected at the level of
the total Community industry and trends concerning
prices, profitability, cash flow, ability to raise capital
and investments,
return on investment and
wages collected at the level of the sampled Community
producers.

stocks,

2. Community consumption

(65)

Community consumption was established on the basis of
the sampled
Community industry, the sales data provided by the supporting Community producers, the sales
data provided by the other Community producers and the import volume data on the Community
market obtained from Eurostat.

the sales volumes of

Community consumption in tonnes

903 541

820 713

998 683

1 054 236

Index (2004 = 100)

100

91

111

117

2004

2005

2006

IP

(66) During the period considered, Community consumption increased by 17 % from 903 541 tonnes in
2004 to 1 054 236 tonnes in the IP. The rise in Community consumption may be explained by the
increasing demand in the construction sector and the recovery of the steel sector itself.

3. Imports into the Community from the PRC

3.1. Volume and market share of imports

Imports from the PRC in tonnes

Index (2004 = 100)

Market share

Index (2004 = 100)

2004

3 940

100

0,4 %

100

2005

2006

IP

11 755

43 571

86 918

298

1,4 %

328

1 106

4,4 %

1 001

2 206

8,2 %

1 900

(67) During the period considered, the volume of imports of the product concerned into the Community
increased massively, growing from 3 940 tonnes in 2004 to 86 918 tonnes in the IP, reflecting an
increase of 2 106 %. The period from 2005 to 2006 showed the biggest increase where imports grew
by a massive 271 %.

(68)

The market share of the Chinese imports, expressed as a percentage of the Community consumption,
increased from 0,4 % to 8,2 % in the IP.

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3.2. Prices of imports and undercutting

Average import price from the PRC EUR/tonne

1 238

Index (2004 = 100)

100

2004

2005

929

75

2006

713

58

IP

683

55

(69) Over the period considered, the average import price of the product concerned from the PRC
decreased sharply from EUR 1 238/tonne in 2004 to EUR 683/tonne in the IP, i.e. by over 45 %.

(70) A comparison between the sampled Community industry’s ex-works prices to unrelated customers on
the Community market with the CIF Community frontier prices of exporting producers in the PRC,
duly adjusted for unloading and customs clearance costs, showed price undercutting of 18 % on
average.

4. Situation of the Community industry

(71)

Pursuant to Article 3(5) of the basic Regulation, the examination of the impact of the dumped
imports from the PRC on the Community industry included an analysis of all relevant economic
factors having a bearing on the state of the industry from 2004 to the IP.

4.1. Data relating to the Community industry as a whole

4.1.1. P r o d u c t i o n , p r o d u c t i o n c a p a c i t y a n d c a p a c i t y u t i l i s a t i o n

2004

2005

2006

IP

Production volume in tonnes

924 504

848 596

940 241

953 934

Index (2004 = 100)

100

92

102

103

Production capacity in tonnes

1 071 530

1 126 060

1 197 940

1 212 940

Index (2004 = 100)

Capacity utilisation in %

100

86 %

105

75 %

112

78 %

113

79 %

(72)

Between 2004 and the IP the Community industry’s overall production increased by 3 % while the
production capacity increased by 13 %. During the same period the capacity utilisation rate decreased
by 7 percentage points. However, this has to be seen in light of the 17 % increase in Community
consumption.

4.1.2. E m p l o y m e n t , p r o d u c t i v i t y

Number of employees

Index (2004 = 100)

Productivity (tonnes/employees)

Index (2004 = 100)

2004

1 259

100

734

100

2005

1 234

98

688

94

2006

1 273

101

739

101

IP

1 277

101

747

102

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(73)

Employment levels within the Community industry remained relatively stable throughout the period
considered.

(74)

The productivity of the Community industry’s workforce, measured as output in tonnes per person
employed showed a slight increase of 2 % during the period considered.

4.1.3. S a l e s v o l u m e , m a r k e t s h a r e

Sales volume in the EU to unrelated parties in
tonnes

2004

2005

2006

IP

842 526

741 597

845 014

846 561

Index (2004 = 100)

Market share

100

88

100

100

93,2 %

90,4 %

84,6 %

80,3 %

(75)

(76)

The Community industry’s sales volume to unrelated customers on the Community market remained
stable, having been 842 526 tonnes in 2004 and 846 561 tonnes in the IP.

The market share of the Community industry declined constantly throughout the period considered.
The overall market share held by the Community industry decreased by around 13 percentage points
from around 93 % in 2004 to around 80 % in the IP.

4.1.4. G r o w t h

(77) While Community consumption grew by 17 % between 2004 and the IP, the around 13 percentage
points’ decline in the market share of the Community industry and the parallel surge in imports from
the PRC show that the Community industry could not participate in the growth of the market.

4.2. Data relating to the sampled Community producers

4.2.1. S t o c k s

(78)

The figures below only refer to the sampled companies and represent the volume of stocks at the end
of each period.

Closing stock in tonnes

27 010

24 485

23 905

36 355

Index (2004 = 100)

100

91

89

135

2004

2005

2006

IP

(79)

Stocks increased by 35 % during the period considered, reflecting the industry’s increasing difficulty
in selling its products on the Community market, despite the significant rise in Community
consumption.

4.2.2. A v e r a g e u n i t s e l l i n g p r i c e s o n t h e C o m m u n i t y m a r k e t

Average sales price of the Community industry
(EUR)

Index (2004 = 100)

2004

751

100

2005

948

126

2006

772

103

IP

762

101

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(80)

the sampled Community industry’s sales to unrelated customers on the
The unit prices of
Community market increased by 1 % between 2004 and the IP. In 2005 the increase in sales
prices may be explained by shortages of the main raw material, wire rod.

4.2.3. I n v e s t m e n t s , r e t u r n o n i n v e s t m e n t s a n d a b i l i t y t o r a i s e c a p i t a l

Investments (000 EUR)

Index (2004 = 100)

Return on investments in %

2004

4 608

100

24 %

2005

10 581

230

31 %

2006

7 516

163

11 %

IP

7 980

173

6 %

(81)

The annual investment in the production of PSC wires and strands increased by 73 % in the period
under consideration. Investments were made not only to increase capacity but also to improve and
further streamline the production process in order to save costs. This was achieved despite the
negative development of profitability.

(82)

The return on investment (ROI), expressed as the profit as a percentage of the net book value of
investments, followed the negative trend of profitability, decreasing by 18 percentage points. The
peak in 2005 related to one company’s investment.

(83) No evidence was provided to the Commission in respect of a reduced or increased ability to raise

capital over the period considered.

4.2.4. P r o f i t a b i l i t y a n d c a s h f l o w

Profitability of EC sales (% of net sales)

Index (2004 = 100)

Cash flow (EUR)

Index (2004 = 100)

2004

6,2 %

100

2005

11,2 %

180

2006

4,5 %

73

IP

2,1 %

35

37 472 789

65 785 501

17 830 311

18 456 732

100

176

48

49

(84) Over the period considered, the profitability expressed as a percentage of net sales of the sampled
Community producers dropped significantly from 6,2 % in 2004 to 2,1 % in the IP. The Community
industry’s profitability followed the same trend as its sales prices from 2005 onwards. It is clear that
the profit achieved during the IP is not sufficient to ensure the viability of the Community industry in
the long term.

(85)

The net cash flow generated by the product concerned decreased by 51 % from 37 million euro in
2004 to 18 million euro in the IP.

4.2.5. L a b o u r c o s t s

Labour costs per employee

41 970

41 118

41 484

43 941

Index (2004 = 100)

100

98

99

105

2004

2005

2006

IP

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(86) During the period considered the labour costs of the Community industry increased by 5 %. This is a

natural increase and is less than the rate of inflation over the period.

4.2.6. M a g n i t u d e o f d u m p i n g m a r g i n

(87) Given the volume, the market share and the prices of the dumped imports from the country
concerned, the impact on the Community industry of the actual margins of dumping cannot be
considered to be negligible.

4.2.7. R e c o v e r y f r o m p a s t d u m p i n g

(88)

There is no indication that the Community industry is recovering from the effects of past dumping.

5. Conclusion on injury

(89) During the period considered, most

injury indicators pertaining to the Community industry
developed negatively. While Community consumption increased by 17 %,
the Community
industry’s sales volume only remained stable and as a result its market share decreased by around
13 percentage points. While the prices of the Chinese imports decreased by 45 %, the unit selling
price of the like product on the Community market of the sampled Community producers remained
more or less stable, despite the 5 % increase in the unit cost of production resulting from the rise in
the costs of energy and raw materials. Consequently, profitability fell from 6,2 % in 2004 to 2,1 % in
the IP, which is clearly insufficient for this type of industry. Cash flow and return on investments
followed a negative trend as well, decreasing by 51 % and 18 percentage points respectively over the
period considered.

(90) Only a few indicators showed a positive development during the period considered. Production and
production capacity rose by 3 % and 13 % respectively. Investments increased by 73 %. However, as
mentioned above,
increase in
Community consumption (+ 17 %).

this has to be seen against

the background of

the significant

(91)

In the light of the foregoing, it is concluded that the Community industry has suffered material injury
within the meaning of Article 3(5) of the basic Regulation.

1. Introduction

F. CAUSATION

(92)

In accordance with Article 3(6) and (7) of the basic Regulation, the Commission examined whether
the dumped imports from the PRC had caused injury to the Community industry to a degree
sufficient to be considered as material. Known factors other than the dumped imports, which
could at the same time be injuring the Community industry, were also examined to ensure that
possible injury caused by these other factors was not attributed to the dumped imports.

2. Effects of the dumped imports

(93)

The massive increase of 2 106 % in the volume of the dumped imports between 2004 and the IP and
their corresponding increase in market share from 0,4 % in 2004 to 8,2 % in the IP on the
Community market, as well as the 18 % undercutting found during the IP, coincided with the
deterioration of the economic situation of the Community industry, as explained above. Until
2005, the volume of the Chinese imports was not substantial and their prices were above or
close to those of the Community industry. However, as of 2005, the average prices of imports
from the PRC decreased substantially, preventing the Community industry from increasing its prices,
despite the rise in the cost of the main raw material, wire rod, which accounts for 75 % of the
manufacturing costs. As a result, the financial situation of the Community industry deteriorated
sharply in 2006 and during the IP. Moreover, the Community industry lost a significant part of
its market share to the dumped imports.

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(94)

Based on the above, it is provisionally concluded that the dumped imports from the PRC, which
significantly undercut
the prices of the Community industry during the IP and which sharply
increased in volume, have had a determining role in the injury suffered by the Community
industry, which is reflected in its poor financial situation and in the deterioration of most injury
indicators.

3. Effects of other factors

3.1. Imports from other countries

2004

2005

2006

IP

Imports from other third countries in tonnes

57 075

67 361

110 098

120 757

Index (2004 = 100)

Market share from other third countries

Average price of imports

Index (2004 = 100)

100

6 %

711

100

118

8 %

842

118

193

11 %

937

132

212

11 %

952

134

(95)

Based on Eurostat data, the volume of imports into the Community of PSC wires and strands
originating in third countries not concerned by this investigation increased by 112 %,
from
57 075 tonnes in 2004 to 120 757 tonnes in the IP. The corresponding market share held by
these imports increased from 6 % in 2004 to 11 % in the IP.

(96) However,

the average prices of

these imports were far above those of

the Chinese exporting
producers and even those of the Community industry. Consequently, they cannot be considered as
having contributed to the injury suffered by the Community industry. It should be noted that among
these countries, two of them, holding a 2,5 % market share on the Community market, were found
to have prices in the IP below the import prices of the product concerned from the PRC. However,
given the relatively low volume of imports involved, this cannot be considered sufficient to break the
causal link between the dumped imports from the PRC and the injury suffered by the Community
industry.

3.2. Export performance of the sampled Community industry

Export sales in MT

Index (2004 = 100)

Unit selling price in euro

Index (2004 = 100)

2004

2005

2006

IP

54 759

73 186

69 324

63 792

100

715

100

134

723

101

127

650

91

116

660

92

(97) As can be seen from the above table, during the period considered, the sampled Community industry
increased its volume of export sales by 16 %. These exports accounted for 14 % of its total sales
during the IP.

(98)

The unit export selling price of the Community producers decreased by 8 % from EUR 715 in 2004
to EUR 660 in the IP. However, although the aggregated figures suggest that these exports were made
at prices below cost of production from the beginning of the period considered, there are variations
between companies and time. In addition, due to the competition with the Chinese companies on
these markets, they were forced to align their prices to those charged by them.

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(99)

It cannot therefore be concluded that this factor has contributed substantially to the recent dete­
rioration in the financial situation of the Community industry and thus to the material injury suffered
by the Community industry.

3.3. Cost of production

Unit cost of production

Index (2004 = 100)

2004

700

100

2005

812

116

2006

724

103

IP

740

105

(100) The investigation showed that the unit costs of production of the Community industry increased by
5 % between 2004 and the IP. The increase is attributed to the rise in the price of the main raw
material, wire rod, as well as energy costs.

(101) Under normal economic conditions and in the absence of strong price pressure from the dumped
imports, the Community industry would have had no difficulty in coping with the increase in costs it
experienced between 2004 and the IP. Consequently, it is provisionally concluded that this increase
did not break the causal link between the dumped imports from the PRC and the material injury
suffered by the Community industry.

3.4. Competition from other producers in the Community

2004

2005

2006

IP

EC sales of other producers in the Community

85 500

77 332

80 466

80 356

Index (2004 = 100)

100

Market
Community

share

of

other

producers

in the

9,5 %

90

9,4 %

94

8,1 %

94

7,6 %

(102) As regards the sales volume of other Community producers which are neither complaining nor
supporting companies, which accounted for 8 % of total EU production, it declined by 6 % from
an estimated 85 500 MT in 2004 to 80 356 MT in the IP. Their share of the Community market fell
from 9,5 % to 7,6 % over the same period and no indication was found that their prices were lower
than those of the sampled Community industry. It is therefore provisionally concluded that their sales
on the Community market did not contribute to the injury suffered by the Community industry.

4. Conclusion on causation

(103) The investigation showed that the other known factors, such as imports from other third countries,
exports by the Community industry, competition with other producers and the rise in the cost of
production were not a determining cause for the injury suffered by the Community industry.

(104) The coincidence in time between, on the one hand, the massive increase in dumped imports from the
PRC, the corresponding increase in market share and the undercutting found and, on the other hand,
the deterioration in the situation of the Community industry,
leads to the conclusion that the
dumped imports caused the material
injury suffered by the Community industry within the
meaning of Article 3(6) of the basic Regulation.

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1. General considerations

G. COMMUNITY INTEREST

(105)

In accordance with Article 21 of the basic Regulation it has been examined whether, despite the
provisional finding of injurious dumping, compelling reasons exist for concluding that it is not in the
Community interest to adopt measures in this particular case. The impact of possible measures on all
parties involved in this proceeding and also the consequences of not
taking measures were
considered.

2. Interests of the Community industry

(106) The Community industry has been suffering from injurious dumped imports of

the product
It is also recalled that most economic indicators of the Community
concerned from the PRC.
industry showed a negative trend during the period considered. Taking into account the nature of
the injury (i.e. a fall in market share and profitability), a further and substantial deterioration in the
situation of the Community industry appears unavoidable in the absence of measures.

(107) The imposition of measures is expected to prevent further distortions and restore fair competition on
the market. This should allow the Community industry to increase its selling prices to a level that
would ensure a reasonable profit margin.

(108) Should measures not be imposed, prices would continue to decrease and the Community producers’
profits would deteriorate further. This would be unsustainable in the medium to long-term. In view
of the low level of profits and the investments made in production, it can be expected that some
Community producers would be unable to recover their investments should measures not be
imposed.

(109)

In addition, given that the Community industry consists of small and medium-sized enterprises
spread throughout
the imposition of anti-dumping measures will help to
the Community,
maintain employment in these areas.

(110)

It is therefore provisionally concluded that anti-dumping measures would be in the interest of the
Community industry.

3. Interests of other Community producers

(111) With regard to the four companies which were neither complainants nor supporting the complaint,
there are no indications that the imposition of measures would be against the interests of these
producers.

4. Interest of importers

(112) The Commission sent questionnaires to all known importers and traders. Four importers cooperated
in the investigation by submitting replies to the questionnaire. They accounted for around 38 % of
the total
the Community
consumption during the IP. A verification visit was subsequently carried out at the premises of
two of them, located in Spain and in the UK. The volume of the product concerned imported by
these two companies accounted for between 20 and 38 % of the total imports from the PRC into the
Community.

imports from the PRC into the Community and around 3,2 % of

(113) For these two importers, the product concerned represented 100 % of their turnover. One importer
sourced 100 % and the other 90 % of their total imports of the product concerned from the PRC. In
terms of workforce, between 8 and 11 persons are directly involved in the purchasing trading, and
resale of the product concerned.

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the effect on importers of any increase in the prices of

(114) Should anti-dumping measures be imposed, it cannot be ruled out that the level of imports orig­
the
inating in the country concerned may decrease,
importers. However,
the
product concerned should only restore competition on the Community market and should not
prevent the importers from selling the product concerned. In addition, the low proportion of the
costs of the product concerned in the users’ total costs should make it easier for the importers to
pass any price increase on to their customers. On this basis, it has been provisionally concluded that
the imposition of anti-dumping measures is not likely to have a serious negative effect on the
situation of importers in the Community.

thus affecting the economic situation of
imports of

5. Interest of users

(115) Questionnaires were sent to all the parties named as users in the complaint. Seven users, which
accounted for around 13 % of the total imports from the PRC into the Community, cooperated in
the investigation by submitting a reply to the questionnaire. A verification visit was subsequently
carried out at the premises of two of them, located in Spain and in the UK. In total, these two
companies accounted for less than 5 % of imports of PSC wires and strands from PRC in the IP. They
mostly sourced the product concerned from other sources such as the Community industry and
South Africa.

(116)

It is recalled that the product concerned is used for concrete reinforcement, for suspension elements
and for stay-cable bridges in the construction business. However, in this proceeding the users are
intermediate companies that produce and supply the elements for the aforementioned applications. In
view of that, even though the impact of the imposition of any anti-dumping duty should not be
negligible, it is expected that these users would be in a position to pass on all or almost all of the
increase in prices resulting from the imposition of anti-dumping measures to the final users, bearing
in mind that for the latter, the impact of such measures will be negligible.

(117)

It is therefore provisionally concluded that the impact on costs of the users resulting from the
imposition of anti-dumping duties would be not significant.

6. Conclusion on Community interest

(118)

In view of the above,
impose anti-dumping duties on imports of PSC wires and strands originating in the PRC.

it is provisionally concluded that there are no compelling reasons not to

H. PROVISIONAL ANTI-DUMPING MEASURES

1. Injury elimination level

(119)

In view of
the conclusions reached with regard to dumping, resulting injury, causation and
Community interest, provisional measures should be imposed in order to prevent further injury
being caused to the Community industry by the dumped imports.

(120) For the purpose of determining the level of these duties, account was taken of the dumping margins
found and the amount of duty necessary to eliminate the injury sustained by the Community
industry.

(121) 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 of production
and to obtain a profit before tax that could be reasonably achieved by an industry of this type in the
sector under normal conditions of competition, i.e. in the absence of dumped imports, on sales of the
like product in the Community. The pre-tax profit margin used for this calculation was 8,5 % of
turnover based on the weighted average profit levels achieved in 2004 and 2005 prior to the
existence of significant import quantities from the PRC, and which were at prices above or close
to those of the CI. On this basis, a non-injurious price was calculated for the Community industry for
the like product. The non-injurious price was obtained by adding the abovementioned profit margin
of 8,5 % to the costs of production.

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(122) The necessary price increase was then determined on the basis of a comparison of the weighted
average import price, as established for the price undercutting calculations, with the non-injurious
price of products sold by the Community industry on the Community market. Any difference
resulting from this comparison was then expressed as a percentage of the total CIF import value.

(123)

In order to calculate the countrywide injury elimination level for all other exporting producers in the
PRC, it should be recalled that the level of cooperation was low. Therefore the injury margin was
calculated at the injury elimination level determined for the cooperating company not granted MET
or IT.

2. Provisional measures

(124)

In the light of the foregoing,
in accordance with Article 7(2) of the basic
Regulation, provisional anti-dumping duties should be imposed on imports originating in the PRC at
the level of the lower of the dumping and the injury margins, in accordance with the lesser duty rule.
In this case, all duty rates should accordingly be set at the level of the injury margins found.

it is considered that,

(125) The individual company anti-dumping duty rates specified in this Regulation were established on the
basis of the findings of the present investigation. Therefore, they reflect the situation found during
that investigation with respect to these companies. These duty rates (as opposed to the countrywide
duty applicable to all other companies) are thus exclusively applicable to imports of products
originating in the country concerned and produced by the companies and thus by the specific
Imported products produced by any other company not specifically
legal entities mentioned.
mentioned in the operative part of this Regulation with its name and address,
including entities
related to those specifically mentioned, cannot benefit from these rates and shall be subject to the
duty rate applicable to ‘all other companies’.

(126) Any claim requesting the application of these individual company anti-dumping duty rates (e.g.
following a change in the name of the entity or following the setting up of new production or
sales entities) should be addressed to the Commission forthwith with all relevant information, in
particular any modification in the company’s activities linked to production, domestic and export
sales associated with, for example, that name change or that change in the production and sales
entities. If appropriate the Commission will, after consultation of the Advisory Committee, amend the
Regulation accordingly by updating the list of companies benefiting from individual duty rates.

(127) The proposed anti-dumping duties are the following:

Company

Injury elimi­
nation margin

Dumping
margin

Anti-dumping
duty rate

Kiswire Qingdao, Ltd

Liaoning Tongda Building Material Industry Co., Ltd

Wuxi Jinyang Metal Products Co., Ltd

All other companies

2,1 %

23,7 %

30,8 %

52,2 %

26,8 %

41,3 %

47,6 %

56,7 %

2,1 %

23,7 %

30,8 %

52,2 %

I. FINAL PROVISION

(128)

In the interest of sound administration a period should be fixed within which the interested parties
which made themselves known within the time limit specified in the notice of initiation may make
their views known in writing and request a hearing. Furthermore, it should be stated that the findings
concerning the imposition of anti-dumping duties made for the purposes of this Regulation are
provisional and may have to be reconsidered for the purpose of any definitive findings,

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L 306/21

HAS ADOPTED THIS REGULATION:

Article 1

A provisional anti-dumping duty is hereby imposed on imports of wire of non-alloy steel (not plated
1.
or not coated or plated or coated with zinc) and stranded wire of non-alloy steel (whether or not plated or
coated), containing by weight 0,6 % or more of carbon, with a maximum cross-sectional dimension
exceeding 3 mm, falling within CN codes ex 7217 10 90, ex 7217 20 90, ex 7312 10 61, ex 7312 10 65
and ex 7312 10 69 (TARIC codes 7217 10 90 10, 7217 20 90 10, 7312 10 61 11, 7312 10 61 91,
7312 10 65 11, 7312 10 65 91, 7312 10 69 11 and 7312 10 69 91) and originating in the People’s
Republic of China.

The rate of anti-dumping duty applicable to the net, free-at-Community-frontier price, before duty, of

2.
the products described in paragraph 1 and produced by the companies below shall be as follows:

Kiswire Qingdao, Ltd, Qingdao

Company

Liaoning Tongda Building Material Industry Co., Ltd, Liaoyang

Wuxi Jinyang Metal Products Co., Ltd, Wuxi

All other companies

Duty

2,1 %

23,7 %

30,8 %

52,2 %

TARIC additional codes

A899

A900

A901

A999

The release for free circulation in the Community of the product referred to in paragraph 1 shall be

3.
subject to the provision of a security equivalent to the amount of the provisional duty.

4.

Unless otherwise specified, the provisions in force concerning customs duties shall apply.

Article 2

Without prejudice to Article 20 of Regulation (EC) No 384/96, interested parties may request disclosure of
the essential facts and considerations on the basis of which this Regulation was adopted, make their views
known in writing and apply to be heard orally by the Commission within one month of the date of entry
into force of this Regulation.

Pursuant to Article 21(4) of Regulation (EC) No 384/96, the parties concerned may comment on the
application of this Regulation within one month of the date of its entry into force.

Article 3

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

Article 1 of this Regulation shall apply for a period of six months.

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

Done at Brussels, 14 November 2008.

For the Commission

Catherine ASHTON
Member of the Commission