Proposal for a COUNCIL REGULATION imposing a definitive anti-dumping duty on imports of steel ropes and cables originating in the People's Republic of China and Ukraine as extended to imports of steel ropes and cables consigned from Morocco, Moldova and the Republic of Korea, whether declared as originating in these countries or not, following an expiry review pursuant to Article 11(2) of Regulation (EC) No 1225/2009 and terminating the expiry review proceeding concerning imports of steel ropes and cables originating in South Africa pursuant to Article 11(2) of Regulation (EC) No 1225/2009
Date: 2012-01-09
Institutions: Directorate-General for Trade and Economic Security, European Commission
Subjects: China, Moldova, Morocco, South Africa, South Korea, Ukraine, anti-dumping duty, import (EU), industrial product, originating product, steel

EUROPEAN COMMISSION 

Brussels, 9.1.2012 
COM(2011) 936 final 

2011/0462 (NLE) 

Proposal for a 

COUNCIL REGULATION 

imposing a definitive anti-dumping duty on imports of steel ropes and cables originating 
in the People's Republic of China and Ukraine as extended to imports of steel ropes and 
cables consigned from Morocco, Moldova and the Republic of Korea, whether declared 
as originating in these countries or not, following an expiry review pursuant to Article 
11(2) of Regulation (EC) No 1225/2009 and terminating the expiry review proceeding 
concerning imports of steel ropes and cables originating in South Africa pursuant to 
Article 11(2) of Regulation (EC) No 1225/2009 

 
 
  
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

•  Grounds for and objectives of the proposal 

This proposal concerns the application of Council Regulation (EC) No 1225/2009 of 
30  November  2009  on  protection  against  dumped  imports  from  countries  not 
members  of  the  European  Community  ('the  basic  Regulation')  in  the  review 
proceeding concerning  imports of steel  ropes and cables originating  in  the People's 
Republic of China, South Africa and Ukraine. 

•  General context 

This proposal is made in the context of the implementation of the basic Regulation 
and is the result of an investigation which was carried out in line with the substantive 
and  procedural  requirements  laid  out  in  the  basic  Regulation  and  in  particular 
Articles 9 and 11(2) thereof. 

•  Existing provisions in the area of the proposal 

The  measures  currently  in  force  were  imposed  by  Council  Regulation  (EC)  No 
1858/2005 on imports of steel ropes and cables originating, inter alia, in the People's 
Republic  of  China,  India,  South  Africa  and  Ukraine  and  extended  by  Council 
Regulation  400/2010  to  imports  of  steel  ropes  and  cables  consigned  from  the 
Republic of Korea, whether declared as originating in the Republic of Korea or not. 

•  Consistency with the other policies and objectives of the Union 

Not applicable. 

2. 

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

•  Consultation of interested parties 

Interested  parties  concerned  by  the  proceeding  have  had  the  possibility  to  defend 
their  interests  during  the  investigation,  in  line  with  the  provisions  of  the  basic 
Regulation. 

•  Collection and use of expertise 

There was no need for external expertise. 

•  Impact assessment 

This proposal is the result of the implementation of the basic Regulation. 

The basic Regulation does not foresee a general impact assessment but contains an 
exhaustive list of conditions that have to be assessed. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

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•  Summary of the proposed action 

On  13  November  2010,  the  Commission  initiated  an  expiry  review  of  the  anti-
dumping measures applicable to imports of steel ropes and cables originating in the 
People's  Republic  of  China,  South  africa  and  Ukraine.  The  attached  proposal  for  a 
Council Regulation is based on the findings of the lasting nature of the continuation 
or recurrence of dumping and inury concerning the imports of steel ropes and cables 
originating in the Republic of China and Ukraine. With regard to South Africa, it was 
found that it is not likely that injury would reoccur if the measures were allowed to 
lapse. 

It is therefore proposed that the Council adopt the attached proposal for a regulation 
extending  the  measures  currently  in  force  on  imports  of  steel  ropes  and  cables 
originating in the People's Republic of China and Ukraine for a period of five years 
and  terminating  the  proceeding  concerning  imports  of  steel  ropes  and  cables 
originating in South Africa. 

•  Legal basis 

Council Regulation (EC) No 1225/2009 of 30 November 2009 on protection against 
dumped  imports  from  countries  not  members  of  the  European  Community  and  in 
particular Article 11(2) thereof.  

•  Subsidiarity principle 

The  proposal  falls  under  the  exclusive  competence  of  the  Union.  The  subsidiarity 
principle therefore does not apply. 

•  Proportionality principle 

The proposal complies with the proportionality principle for the following reasons:  

The form of action is described in the above-mentioned basic Regulation and leaves 
no scope for national decision. 

Indication  of  how  the  financial  and  administrative  burden  falling  upon  the  Union, 
national governments, regional and local authorities, economic operators and citizens 
is minimized and proportionate to the objective of the proposal is not applicable. 

•  Choice of instruments 

Proposed instruments: Regulation. 

Other means would not be adequate for the following reason: The above-mentioned 
basic Regulation does not foresee alternative options. 

4. 

BUDGETARY IMPLICATION 

The proposal has no implication for the Union budget. 

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2011/0462 (NLE) 

Proposal for a 

COUNCIL REGULATION 

imposing a definitive anti-dumping duty on imports of steel ropes and cables originating 
in the People's Republic of China and Ukraine as extended to imports of steel ropes and 
cables consigned from Morocco, Moldova and the Republic of Korea, whether declared 
as originating in these countries or not, following an expiry review pursuant to Article 
11(2) of Regulation (EC) No 1225/2009 and terminating the expiry review proceeding 
concerning imports of steel ropes and cables originating in South Africa pursuant to 
Article 11(2) of Regulation (EC) No 1225/2009 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union,  

Having regard to Council Regulation (EC) No 1225/2009 of 30 November 2009 on protection 
against dumped imports from countries not members of the European Community1 (the ‘basic 
Regulation’), and in particular Articles 9(2), 9(4) and 11(2) thereof, 

Having  regard  to  the  proposal  submitted  by  the  European  Commission  ('the  Commission') 
after consulting the Advisory Committee, 

Whereas: 

1. 

(1) 

(2) 

A. PROCEDURE 

Previous investigations and existing measures 

By Regulation (EC) No 1796/19992 (the ‘original Regulation’), the Council imposed a 
definitive anti-dumping duty on imports of steel ropes and cables ('SWR') originating, 
inter  alia,  in  the  People’s  Republic  of  China  (the  'PRC'),  India,  South  Africa  and 
Ukraine. These measures will hereinafter be referred to as 'the original measures' and 
the investigation that led to the measures imposed by the original Regulation will be 
hereinafter referred to as 'the original investigation'. 

In  2001,  the  Council,  by  Regulation  (EC)  No  1601/20013, imposed a definitive anti-
dumping  duty  ranging  from  9.7%  to  50.7%  on  imports  of  certain  iron  or  steel  ropes 
and  cables  originating  inter  alia  in  the  Russian  Federation.  The  same  level  of  duties 
was  imposed  by  Council  Regulation  (EC)  1279/20074  following  partial  interim  and 

1 
2 
3 
4 

OJ L 343, 22.12.2009, p. 51. 
OJ L 217, 17.8.1999, p. 1. 
OJ L 211, 04.08.2001, p. 1. 
OJ L 285, 31.10.2007, p. 1. 

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expiry reviews. In April 2004, by Regulation (EC) No 760/20045 the Council extended 
the  original  measures  to  imports  of  SWR  consigned  from  Moldova  following  an 
investigation on the circumvention of the anti-dumping measures imposed on SWR of 
Ukrainian  origin  via  Moldova.  Similarly,  in  October  2004,  by  Regulation  (EC)  No 
1886/20046 the Council extended the original measures against the PRC to imports of 
SWR consigned from Morocco. 

By  Regulation  (EC)  No  1858/20057  the  Council,  following  an  expiry  review, 
maintained  the  original  measures  in  accordance  with  Article  11(2)  of  the  basic 
Regulation.  These  measures  will  hereinafter  be  referred  to  as  'the  measures  in  force' 
and  the  expiry  review  investigation  will  be  hereinafter  referred  to  as  'the  last 
investigation'.  In  May  2010  by  Regulation  (EU)  No  400/20108 the Council  extended 
the  original  measures  to  imports  of  SWR  consigned  from  the  Republic  of  Korea 
following  an  investigation  on  the  circumvention  of  the  anti-dumping  measures  on 
SWR of Chinese origin via the Republic of Korea 

Request for an expiry review 

On  13  November  2010,  the  Commission  announced  by  a  notice  published  in  the 
Official Journal of the European Union the initiation of an expiry review ('Notice of 
initiation')9 of the anti-dumping measures applicable to imports of SWR originating in 
the PRC, South Africa and Ukraine pursuant to Article 11(2) of the basic Regulation 

The  review  was  initiated  following  a  substantiated  request  lodged  by  the  Liaison 
Committee  of  European  Union  Wire  Rope  Industries  (EWRIS)  ('the  applicant')  on 
behalf  of  Union  producers  representing  a  major  proportion,  in  this  case  more  than 
60%,  of  the  total  Union  production  of  SWR.  The  request  was  based  on  the  grounds 
that the expiry of the measures would be likely to result in a continuation or recurrence 
of dumping and injury to the Union Industry ('UI'). 

In the absence of such evidence concerning imports originating in India, the applicant 
did  not  request  the  initiation  of  an  expiry  review  concerning  imports  originating  in 
India.  Consequently,  the  measures  applicable  to  imports  originating  in  India  expired 
on 17 November 201010. 

Investigation 

The  Commission  officially  advised  the  exporting  producers,  importers,  known  users 
and their associations, the representatives of the exporting countries, the applicant and 
the Union producers mentioned in the request of the initiation of the review. 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. 

(3) 

2. 

(4) 

(5) 

(6) 

3. 

(7) 

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9 
10 

OJ L 120, 24.4.2004, p. 1. 
OJ L 328, 30.10.2004, p. 1. 
OJ L 299, 16.11.2005, p. 1.  
OJ L 117, 11.5.2010, p. 1. 
OJ C 309, 13.11.2010, p. 6. 
OJ C 311, 16.11.2010, p.16. 

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(8) 

(9) 

In  view  of  the  large  number  of  exporting  producers  in  the  PRC,  of  Union  producers 
and of importers involved in the investigation, sampling was initially envisaged in the 
notice of initiation in accordance with Article 17 of the basic Regulation.. In order to 
enable the Commission to decide whether sampling would be indeed necessary and, if 
so,  to  select  a  sample,  the  above  parties  were  requested,  to  make  themselves  known 
within  two  weeks of  the  initiation of the proceeding and to provide the Commission 
with the information requested in the notice of initiation. 

Given that only one exporting producer in the PRC provided the information requested 
in  the  notice  of  initiation  and  expressed  its  willingness  to  further  cooperate  with  the 
Commission,  it  was  decided  not  to  apply  sampling  in  the  case  of  the  exporting 
producers in the PRC, and to send a questionnaire to the aforementioned producer.  

(10)  Twenty  Union  producers/producer  groups  provided  the  information  requested  in  the 
notice of initiation and expressed their willingness to cooperate with the Commission. 
On the basis of the information received from the Union  producers/producer groups, 
the Commission selected a sample of three producers/groups of producers, which were 
found to be representative of the Union industry in terms of volume of production and 
sales of the like product in the Union. 

(11)  Eight  importers  provided  the  information  requested  in  the  notice  of  initiation  and 
expressed  their  willingness  to  cooperate  with  the  Commission.  However,  since  only 
two importers had actually imported the product concerned, the Commission decided 
not to apply sampling and to send a questionnaire to the aforementioned importers.  

(12)  Questionnaires  were  therefore  sent  to  the  three  sampled  Union  producers/producer 
groups, to two importers and to all known exporting producers in the three countries 
concerned. 

(13)  The exporting producer in the PRC that answered to the sampling form subsequently 
failed  to  submit  the  questionnaire  reply.  It  is  therefore  considered  that  no  exporting 
producers in the PRC cooperated in the investigation. 

(14)  One  exporting  producer  in  Ukraine  provided  a  limited  submission  at  the  time  of  the 
initiation  of  the  investigation.  The  producer  was  invited  to  fill  in  a  questionnaire, 
however it failed to submit the questionnaire reply. It is therefore considered that no 
exporting producers in the Ukraine cooperated in the investigation.  

(15)  One exporting producer in South Africa provided a reply to the questionnaire. 

(16)  Replies  to  the  questionnaires  were  further  received  from  the  three  sampled  Union 

producers/producer groups, two importers and one user. 

(17)  The  Commission  sought  and  verified  all  information  it  deemed  necessary  for  the 
purpose  of  determining  the  likelihood  of  continuation  or  recurrence  of  dumping  and 
resulting  injury  and  of  the  Union  interest.  Verification  visits  were  carried  out  at  the 
premises of the following companies: 

a) Union producers: 

– 

CASAR Drahtseilwerk Saar GmbH, Germany, 

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– 

BRIDON Group composed of two companies: Bridon International Ltd. United 
Kingdom, and BRIDON International GmbH, Germany, 

– 

REDAELLI Tecna Spa, Italy. 

b) Exporting producer in South Africa: 

– 

SCAW South Africa Ltd., South Africa. 

c) Importers: 

– 

– 

HEKO Industrieerzeugnisse GmbH, Germany, 

SENTECH International, France. 

d) User: 

– 

ASCENSORES ORONA S coop, Spain. 

(18)  The  investigation  regarding  the  continuation  or  recurrence  of  dumping  and  injury 
covered the period from 1 October 2009 to 30 September 2010 ('review investigation 
period'  or  'RIP').  The  examination  of  the  trends  relevant  for  the  assessment  of  a 
likelihood of a continuation or recurrence of injury covered the period from 1 January 
2007 up to the end of the RIP ('period considered'). 

B. PRODUCT CONCERNED AND LIKE PRODUCT 

1. 

Product concerned 

(19)  The  product  concerned  is  the  same  as  that  in  the  original  investigation  and  the  last 
investigation which led to the imposition of measures currently in force, i.e. steel ropes 
and cables, including locked coil ropes, excluding ropes and cables of stainless steel, 
with a maximum cross-sectional dimension exceeding 3 mm (in industry terminology 
often referred to as 'SWR'), currently falling within CN codes ex 7312 10 81, ex 7312 
10 83, ex 7312 10 85, ex 7312 10 89 and ex 7312 10 98 (the 'product concerned'). 

2. 

Like product 

(20)  As  established  in  the  original  and  last  investigations,  this  review  investigation 
confirmed  that  SWR  produced  in  the  PRC  and  Ukraine  and  exported  to  the  Union, 
SWR produced and sold on the domestic market of South Africa and exported to the 
Union,  SWR  produced  and  sold  on  the  domestic  market  of  the  analogue  country, 
Turkey,  and  SWR  produced  and  sold  in  the  Union  by  the  Union  producers  have  the 
same  basic  physical  and  technical  characteristics  and  end  uses  and  are  therefore 
considered  to  be  like  products  within  the  meaning  of  Article  1(4)  of  the  basic 
Regulation. 

(21)  An importer put forward an argument that was also raised in the last investigation by 
the European Wire Rope Importers Association (EWRIA). It alleged that the product 
concerned  and  the  products  manufactured  and  sold  in  the  Union  differ  substantially 
and  that  a  distinction  should  be  made  between  general  and  special  purpose  ropes. 
These  arguments  were  addressed  in  depth  in  the  original  and  last  Regulations 

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imposing  provisional  and  definitive  measures  on  imports  of  the  product  concerned. 
Furthermore, in the court case T-369/08 EWRIA v European Commission the General 
Court held that the Commission did not commit a manifest error of assessment in not 
differentiating between general and special purpose ropes in the investigations on the 
basis of the available evidence11. 

(22)  As the importer did not bring any new element showing that the basis on which these 
original findings were made had changed, the conclusions reached in the original and 
last Regulations are confirmed. 

C. 

LIKELIHOOD OF A CONTINUATION OR RECURRENCE OF DUMPING 

(23) 

In  accordance  with  Article  11(2)  of  the  basic  Regulation,  it  was  examined  whether 
dumping  was  likely  to  continue  or  recur  upon  a  possible  expiry  of  the  measures  in 
force. 

1. 

Preliminary remarks 

(24)  As  regards  the  PRC  and  Ukraine,  none  of  the  exporting  producers  cooperated  fully. 
One  exporting  producer  in  Ukraine  and  one  exporting  producer  in  the  PRC  came 
forward and a questionnaire intended for exporting producers was sent to them. Their 
replies  to  the  questionnaire  were  considered  as  incomplete  and  inconsistent  and  no 
verification visits could be held at their premises. The companies concerned have been 
duly informed in writing that under these circumstances use would have to be made of 
facts available in accordance with Article 18 of the basic Regulation. In South Africa, 
the  sole  known  exporting  producer  submitted  information  on  its  export  sales  to  the 
Union during the RIP, which represented all export sales of South Africa to the Union 
during the same period. 

(25)  During  the  RIP,  the  total  import  volume,  as  recorded  in  Eurostat,  of  SWR  from  the 
PRC,  South  Africa  and  Ukraine  amounted  to  4.833  tonnes,  representing  2.4%  of  the 
Union  market  share.  During  the  last  investigation  total  imports  of  the  countries 
concerned amounted to 3.915 tonnes, representing 2.2% of the Union market share. 

2. 

Dumping of imports during the RIP  

(26) 

In accordance with Article 11(9) of the basic Regulation, the same methodology was 
used  as  in  the  original  investigation,  whenever  circumstances  have  not  changed  or 
whenever  the  information  was  available.  In  case  of  non-cooperation,  such  as  in  the 
case of the PRC and Ukraine, use had to be made of facts available in accordance with 
Article 18 of the basic Regulation. 

2.1. 

The PRC 

(27)  During  the  RIP,  the  total  import  volume,  as  recorded  in  Eurostat,  of  SWR  from  the 
PRC amounted to 4.530 tonnes, representing 2.2% of the Union market share. 

2.1.1.  Analogue country 

11 

Case  T-369/08  European  Wire  Rope  Importers  Association  (EWRIA)  and  Others  v  European 
Commission [2010], paragraphs 76ff 

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(28)  Since  the  PRC  is  an  economy  in  transition,  normal  value  had  to  be  based  on 
information  obtained  in  an  appropriate  market  economy  third  country  in  accordance 
with Article 2(7)(a) of the basic Regulation. 

(29) 

In the last investigation, Turkey was used as an analogue country for the purpose of 
establishing normal value. For the present investigation the applicant proposed to use 
again Turkey. No one objected to the choice of an analogue country.  

(30)  The  investigation showed that Turkey  had a competitive  market for SWR  with  three 
domestic  producers  supplying  around  53%  of  the  market  and  competition  from 
imports  from  other  third  countries.  There  are  no  import  duties  to  Turkey  on  the 
product concerned and there are no other restrictions for imports of SWR into Turkey. 
Finally,  as  mentioned  in  recital  (20),  the  product  produced  and  sold  on  the  Turkish 
domestic market was alike to the product exported by the Chinese exporting producer 
to the Union. 

(31) 

It is therefore  concluded that Turkey constitutes an appropriate analogue country for 
the  purpose  of  establishing  normal  value  in  accordance  with  Article  2(7)(a)  of  the 
basic Regulation 

2.1.2.  Normal value 

(32)  Pursuant  to  Article  2(7)(a)  of  the  basic  Regulation,  normal  value  was  established  on 
the  basis  of  information  received  from  the  cooperating  producer  in  the  analogue 
country, i.e. on the basis of the price paid or payable on the domestic market of Turkey 
by unrelated customers. The information provided by the producer was analysed and 
these  sales  were  found  to  be  made  in  the  ordinary  course  of  trade  and  to  be 
representative.  

(33)  As a result, normal value was established as the weighted average domestic sales price 

to unrelated customers by the cooperating producer in Turkey. 

2.1.3.  Export price 

(34) 

In the absence of cooperation from Chinese producers, in accordance with Article 18 
of  the  basic  Regulation,  the  export  price  was  determined  on  the  basis  of  publicly 
available information. Information collected on the basis of Article 14(6) of the basic 
Regulation  was  found  to  be  more  appropriate  for  the  calculation  of  the  dumping 
margin than Eurostat as the relevant CN codes cover a broader scope of products than 
the product concerned defined in recital (19) above.  

2.1.4.  Comparison 

(35)  For the purpose of ensuring a fair comparison on an ex-factory basis and at the same 
level of trade between the normal value and the export price, due allowance was made 
for  differences  which  were  found  to  affect  price  comparability.  These  adjustments 
were  made  in  respect  of  transportation  costs  and  insurance  costs  in  accordance  with 
Article 2(10) of the basic Regulation. 

2.1.5.  Dumping margin 

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(36) 

In  accordance  with  Article  2(11)  of  the  basic  Regulation,  the  dumping  margin  was 
established  on  the  basis  of  a  comparison  of  the  weighted  average  normal  value  with 
the weighted average export price to the Union. This comparison showed the existence 
of significant dumping of around 38%. 

2.2. 

South Africa 

(37)  During the RIP, as recorded in Eurostat, the total import volume of SWR from South 
Africa amounted to 281 tonnes, representing 0,1% of the Union market share, i.e. at a 
de  minimis  level.  The  sole  known  exporting  producer  represented  100%  of  these 
imports. 

2.2.1.  Normal value 

(38)  Pursuant to Article 2(1) of the basic Regulation, normal value was established on the 
basis of the price paid or payable on the domestic market of South Africa by unrelated 
customers, since these sales were found to be made in the ordinary course of trade and 
to be representative. 

2.2.2.  Export price 

(39)  Since  all  export  sales  of  the  product  concerned  were  made  directly  to  independent 
customers  in  the  Union,  the  export  price  was  established  in  accordance  with  Article 
2(8) of the basic Regulation on the basis of the prices actually paid or payable. 

2.2.3.  Comparison 

(40)  For  the  purpose  of  ensuring  a  fair  comparison  at  the  same  level  of  trade,  on  an  ex-
factory basis, between the normal value and the export price, due allowance was made 
for  differences  which  were  claimed  and  demonstrated  to  affect  price  comparability. 
These  adjustments  were  made  in  respect  of  transportation  costs,  insurance  costs  and 
credit costs in accordance with Article 2(10) of the basic Regulation. 

2.2.4.  Dumping margin 

(41) 

In  accordance  with  Article  2(11)  of  the  basic  Regulation,  the  dumping  margin  was 
established  on  the  basis  of  a  comparison  of  the  weighted  average  normal  value  with 
the  weighted  average  export  price  to  the  Union,  by  product  type.  This  comparison 
showed the existence of dumping amounting to 17%, which is lower than the dumping 
margin of 38,6% found in the original investigation. 

2.3. 

Ukraine 

(42)  During  the  RIP,  as  recorded  in  Eurostat,  the  total  import  volume  of  SWR  from 
Ukraine  amounted  to  22  tonnes,  representing  less  than  0.1%  of  the  Union  market 
share, i.e. a de minimis market share. 

2.3.1.  Normal value 

(43)  Pursuant  to  Article  18  of  the  basic  Regulation,  normal  value  was  established  on  the 
basis of the information found in the applicant's review request, which correspond to 
price paid or payable on the domestic market of Ukraine by unrelated customers. 

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2.3.2.  Export price 

(44) 

In the absence of cooperation from Ukrainian producers, in accordance with Article 18 
of  the  basic  Regulation,  the  export  price  was  determined  on  the  basis  of  publicly 
available information. Information collected on the basis of Article 14(6) of the basic 
Regulation  was  found  to  be  the  most  appropriate  for  the  calculation  of  the  dumping 
margin  as  this  information  cover  precisely  the  product  concerned  defined  in  recital 
(19). 

2.3.3.  Comparison 

(45)  To  ensure  a  fair  comparison  the  export  price  was  adjusted  for  ocean  freight  and 
insurance  in  the  applicant’s  review  request  in  accordance  with  Article  2(10)  of  the 
basic Regulation. As a result, a dumping margin of more than 80% was established for 
the RIP. 

3. 

Likely developments of imports should measures be repealed 

3.1. 

Preliminary remarks 

(46)  None of the 28 known Chinese exporting producers cooperated. 

(47)  The two South African exporting producers named in the request for review replied to 
the  Commission's  inquiries,  but  only  the  one  with  exporting  interest  to  the  Union 
cooperated by filling in a questionnaire. There are no other known producers in South 
Africa. 

(48)  As far as Ukraine is concerned, the known exporting producer stopped cooperation as 

explained in recital (14). No other producers are known in Ukraine.  

3.2. 

The PRC 

3.2.1.  Preliminary remarks 

(49) 

(50) 

In the original investigation all Chinese companies were made subject to a single anti-
dumping  duty  at  the  rate  of  60,4%.  Import  volumes  from  the  PRC  decreased 
significantly, from 11 484 tonnes during the IP of the original investigation (EU-15) to 
1  942  tonnes  during  the  RIP  of  the  last  investigation  (EU-25)  but  then  increased  to 
4.530 tonnes in the current RIP. It is, however, noted that Chinese imports have, since 
2001, an increasing trend. The current market share of the PRC is around 2,2%. 

In order to establish whether dumping would be likely to continue should the measures 
be repealed, the pricing behaviour of the exporting producers to other export markets, 
export  prices  to  the  Union,  production  capacities  and  circumvention  practices  were 
examined. Information relating to the import prices from exporters was determined on 
the basis of Eurostat, to export volumes and prices on the basis of Chinese statistical 
information and information relating to capacity based on information included in the 
request. Eurostat data was found to be best suitable for the comparison with Chinese 
statistical information as the comparison was only possible for a broader product scope 
as explained in the next recital. 

3.2.2.  Relationship between export prices to third countries and export prices to the Union 

EN 

11 

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(51)  The  statictical  information  available  from  the  Chinese  public  databases  covers  a 
broader product scope than the product concerned. Therefore no meaningful analysis 
of quantities exported to other markets could be made on the basis of this information. 
The  price  analysis  for  which  the  Chinese  database  could  be  used  is  based  on 
reasonable estimations given the similar characteristics of the other products possibly 
included in the analysis.  

(52)  On  the  basis  of  the  available  information  as  explained  in  the  above  recital,  it  was 
found  that,  export  prices  from  the  PRC  to  other  export  markets,  were,  on  average, 
significantly  below  the  export  prices  to  the  Union  (by  around  30%  not  taking  into 
account  anti-dumping  duties  paid).  Since,  as  concluded  in  recital  (36),  export  sales 
from the PRC to the Union were made at dumped levels, this indicated that exports to 
other third country markets were likely dumped at even higher levels than the export 
sales  to  the  Union.  It  was  also  considered  that  the  export  price  level  to  other  third 
countries can be seen as an indicator as to the likely price level for export sales to the 
Union  should  measures  be  repealed.  On  this  basis,  and  given  the  low  price  levels  to 
third country markets, it was concluded that there is a considerable margin to reduce 
export prices to the Union, which as a consequence would also increase the dumping. 

3.2.3.  Relationship between export prices to third countries and the price level in the Union 

(53) 

It was also found that the price level of sales by the Union industry in the Union was 
on  average  considerably  higher  than  the  export  price  level  of  the  Chinese  exporter’s 
prices to other third country markets. The fact that the generally prevailing price level 
for  the  product  concerned  in  the  Union  market  makes  the  Union  market  a  very 
attractive one, applies also for the PRC. The higher price level on the Union market is 
an incentive for increasing exports to the Union. 

3.2.4.  Dumping margin 

(54)  As  concluded  in  recital  (36),  export  sales  from  the  PRC  to  the  Union  were  made  at 
significantly dumped levels based on the normal value of the analogue country. In the 
absence of measures, there is no reason to consider that imports would not be made at 
similar dumped prices and in higher quantities. 

3.2.5.  Unused capacity and stocks 

(55)  According  to  the  review  request  and  as  cross-checked  on  the  basis  of  publicly 
available information (i.e. information published by the companies on their websites), 
capacities of all exporting producers in the PRC were estimated at 1.355.000 tonnes. 
The  applicant's  estimation  of  the  capacity  utilization  of  Chinese  producers  is  around 
63%  giving  an  unused  capacity  of  more  than  500.000  tonnes.  The  applicant  also 
provided  information  about  further  prodution  facilities  that  are  being  set  up  and  the 
size of the domestic market. Chinese producers thus have significant spare capacities 
largely  exceeding  not  only  the  export  quantity  to  the  Union  during  the  RIP  but  the 
total Union consumption. Thus, the capacity to vastly increase export quantities to the 
Union exists, in particular, because there are no indications that third country markets 
or the domestic market could absorb any additional production in such quantities. In 
this regard it should be noted that it is very unlikely that the domestic market in the 
PRC, due to the presence of a considerable number of competing producers, would be 
able to absorb significant volumes of these spare capacities. 

EN 

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3.2.6.  Circumvention practices 

(56)  The measures in force on imports of the product concerned from the PRC were found 
to have been circumvented by means of imports transhipped via Morocco in 2004 and 
via the Republic of Korea in 2010. This indicates the clear interest in the Union market 
of sellers of Chinese SWR and their unwillingness to compete on the Union market at 
non-dumped  levels.  This  is  considered  as  a  further  indication  that  Chinese  exports 
would likely increase in volume and enter the Union market at dumped prices, should 
measures be repealed. 

3.3. 

South Africa 

3.3.1.  Preliminary remarks 

(57)  There  are  two  known  producers  in  South  Africa.  As  explained  above,  one  exporting 

producer cooperated in this review investigation.  

(58)  The  other  known  producer  showed  no  interest  in  exporting  to  the  Union  stating  its 
production capacities are fully utilized and sold on the domestic South African market. 

(59) 

Imports from South Africa dropped considerably since the imposition of the original 
measures.  The  market  share  of  imports  from  South  Africa  (0,1%)  was  below  the  de 
minimis threshold during the RIP, amounting in total to 281 tonnes. Moreover, most of 
these  imports  were  eventually  destined  for  offshore  use,  which  has  developed 
considerably since the previous investigation and were not customs cleared in the EU. 
Only  minor  quantities  of  the  product  concerned  were  released  for  free  circulation  in 
the EU.  

(60) 

In  order  to  establish  whether  dumping  would  continue  should  measures  be  repealed 
information  provided  by  the  cooperating  exporter  relating  to  export  volumes  and 
prices to the Union and to third countries, unused capacity and stocks and the situation 
of the South African domestic market were examined. 

3.3.2.  Relationship between export prices to third countries and export prices to the Union 

(61)  The  cooperating  exporter  of  the  product  concerned  provided  information  regarding 
volumes  and  prices  in  export  markets  other  than  the  Union.  The  exporting  producer 
sells  a  considerable  part  of  its  production  on  exports  markets  even  though  export 
volumes  decreased  during  the  period  under  consideration.  The  company's  export 
activitity  is  focused  mostly  on  two  specific  segments  of  the  market:  ropes  for  deep 
shaft mining and off-shore drilling related applications.  

(62)  The  company's  export  prices  to  third  countries  compared  to  the  export  prices  to  the 
Union including the applicable anti-dumping duty were overall significantly higher in 
all years in the period under consideration (30% to 70%). The price advantage reached 
by the exporter on other third country markets in comparison to prices on the Union 
market  suggests  that  the  exporter  would  not  enter  the  Union  market  with  significant 
quantities  in  the  future,  should  measures  be  repealed.  In  this  regard,  it  was  also 
considered that, as explained in recital (61) above, the export activities of the company 
are focused on products that are not primarily demanded on the Union market. 

3.3.3.  Unused capacity and stocks 

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13 

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(63)  Since the last investigation, the cooperating exporting producer kept stocks at a stable 
level. The capacity utilization (around 70-75%) was also at customary levels given the 
technical constraints in the production process. The maximum available spare capacity 
is in the range 1.500-3.500 tonnes. The exporting producer does not plan to expand its 
production  capacities  by  significant  amounts.  The  capacity  to  increase  export 
quantities  to  the  Union  seems  very  limited  in  view  of  the  fact  that  third  country 
markets or the domestic market could absorb any additional production. 

(64) 

It  is  furthermore  noted  that  production  goes  mainly  to  domestic  market  where  high 
profits  are  achieved,  therefore  the  company  has  no  interest  to  export  significant 
quantities to the Union. 

3.4. 

Ukraine 

3.4.1.  Preliminary remarks 

(65)  Given  the  absence  of  cooperation  from  the  known  Ukrainian  exporting  producer,  as 
explained in recital (14) above, findings were based on facts available, in accordance 
with  Article  18  of  the  basic  Regulation.  Since  little  information  is  known  about  the 
Ukrainian industry, the following conclusions rely on the information provided in the 
applicant’s review request and publicly available trade statistics. It is noted that there 
are  no  other  known  producers  in  the  Ukraine  and  that  the  following  considerations 
regarding in particular production capacities, relate to the known exporting producer. 

(66) 

In order to establish whether dumping would be likely to continue should measures be 
repealed, the export prices to third countries and to the Union, unused capacities and 
circumvention practices were examined. 

3.4.2.  Relationship between export prices to third countries and export prices to the Union 

(67) 

In the absence of any other more reliable information, the information provided for in 
the request with regard to other export markets, based on publicly available statistics, 
has  been  taken  into  account.  An  analysis  of  the  figures  available  showed  that  the 
average  export  prices  to  these  countries  were  significantly  below  the  average  export 
prices  to  the  Union.  As  already  explained  in  the  case  of  the  PRC  and  South  Africa 
above, export prices to other third countries were considered as an indicator for to the 
likely price level for export sales to the Union, should measures be repealed. On this 
basis, it was concluded that there is a considerable margin to reduce export prices to 
the Union, and very likely at dumped levels. 

3.4.3.  Unused capacity  

(68) 

In recent years the two previously known exporting producers merged their activities. 
As  a  result,  the  production  capacity  as  established  in  the  last  investigation  was 
downsized.  According  to  the  evidence  available  in  the  request  and  as  stated  by  the 
known exporting producer, the estimated production capacity in the Ukraine is in the 
range  35.000-40.000,  of  which  around  70%  is  used  for  actual  production.  The  spare 
capacity, which is in the range 10.500-12.000 tonnes, thus indicates that the capacity 
to  significantly  increase  export  quantities  to  the  Union  does  exist.  The  apparent 
consumption in Ukraine calculated on the basis of the known production and statistical 
information  about  imports  and  exports  indicates  that  the  domestic  market  cannot 

EN 

14 

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absorb  any  additional  capacities.  Ukraine  thus  remains  the  country  from  where  the 
redirection of the unusued capacities to the Union market is the most imminent from 
all countries concerned, in particular because there are no indications that third country 
markets or the domestic market could absorb any additional production.  

3.4.4.  Circumvention practices 

(69)  Following  the  imposition  of  the  existing  measures  on  imports  of  SWR  from  the 
Ukraine,  it  was  found  that  these  measures  were  being  circumvented  by  imports  of 
SWR  from  Moldova. It  was  considered that the circumvention practice detected was 
an  additional  factor  indicating  the  interest  in  entering  the  Union  market  and  the 
inability to compete on the Union market at non-dumped levels.  

3.5. 

Conclusion 

(70)  Continuation  of  significant  dumping  was  found  for  the  PRC  and  Ukraine  and  of  a 
reduced  level  for  South  Africa,  albeit  import  volumes  from  South  Africa  and  the 
Ukraine were at low levels. 

(71)  For  the  examination  as  to  whether  it  would  be  likely  that  dumping  would  continue 
should the anti-dumping measures be repealed, spare capacities and unused stocks as 
well  as  pricing  and  export  strategies  in  different  markets  were  analysed.  This 
examination  showed  that  there  were  important  spare  capacities  and  accumulated 
stocks in the PRC and to a lesser degree in Ukraine. No significant spare capacities or 
abnormal stocks were observed in South Africa. It was further found that export prices 
to other third countries were generally lower than those to the Union market in case of 
the PRC and Ukraine and that the Union therefore remained an attractive market for 
the exporting producers from these countries. South African exports to other countries 
were however at significantly higher levels than exports to the Union and appeared not 
to  be  at  dumped  prices.  It  was  therefore  concluded  that  exports  from  the  PRC  and 
Ukraine  to  third  countries  would  very  likely  be  redirected  to  the  Union  should  the 
access  to  the  Union  market  be  without  anti-dumping  measures.  The  available  spare 
production capacities would also likely lead to increased imports from these countries. 
An  analysis  of  the  pricing  strategies  revealed  furthermore  that  these  exports  from 
Ukraine and the PRC would most likely be made at dumped prices. These conclusions 
were reinforced by the fact that for both the PRC and Ukraine the existing measures 
were found to have been circumvented by imports via other countries which indicated 
that exporting countries were not able to compete in the Union market at fair prices. 
Conversely,  the  South  African  producer  was  considered  able  to  compete  with  other 
producers, including the Union producers, on other third country markets at fair prices. 
Considering the above, it is established for the PRC and Ukraine that dumping would 
likely continue in significant quantities, should measures be allowed to expire. On the 
contrary,  taking  into  account  the  decreased  level  of  dumping  since  the  original 
investigation, the fact that exports to other countries were made at significantly higher 
prices than to the EU and the predictably low demand for South African products, it is 
considered that the continuation of dumped imports in significant quantities would not 
be likely with regard to imports from South Africa. 

(72)  The  Ukrainian  Government  commented  on  the  above  findings  arguing  that  the 
allegation  that  the  repeal  of  anti-dumping  measures  would  lead  to  a  switch  by  the 
Ukrainian producer to the Union market is exaggerated and unreasonable. To support 

EN 

15 

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its  claim  the  Government  argued  that  the  measures  in  force  resulted  in  the  loss  of 
customer  contacts  in  the  EU  and  thus  the  end  of  exports  to  the  Union  and  that 
Ukranian  exports  are  now  focused  on  the  CIS  and  Asian  markets  instead.  The 
Government  however  failed  to  comment  on  the  attractiveness  of  the  Union  market 
resulting  from  the  considerable  price  difference  on  these  markets  as  mentioned  in 
recital  (67)  above,  and  thus  missed  the  point  that  there  is  indeed  a  likelihood  that 
Ukranian exports would be redirected to the Union if measures were allowed to lapse.  

(73)  After  disclosure,  the  applicant  argued  that  the  decreasing  volume  of  exports  by  the 
South  African  producer  to  other  markets  is  predicted  to  lead  to  increased  spare 
capacities  that  will  not  be  absorbed  by  the  domestic  market  and  thus  will  lead  to 
increasing imports to the Union. These arguments were however not substantiated by 
evidence.  On  the  contrary,  it  was  observed  that  the  cooperating  exporter's  falling 
export  sales  during  the  period  considered  were  mitigated  by  domestic  sales  that 
decreased to a lesser extent during the same period. Also, the overall sales volume of 
the company increased between 2009 and the IP. Thus there is no indication that the 
applicant's argumentation could be justified. 

(74)  The  applicant  further  criticised  the  Commission  for  not  taking  into  account  the  non-
cooperation of the other South African producer and that the fact that this company did 
not export in the past is not a reason that it will not export in the future. In this respect 
it is noted that over the period considered this company did not export to the Union. 
Anti-dumping measures do not serve as an instrument to prohibit legitimate imports to 
the Union. This claim thus had to be rejected.  

D. UNION PRODUCTION AND UNION INDUSTRY 

(75)  Within  the  Union,  SWR  are  manufactured  by  over  25  producers/producer  groups. 
which  constitute  the  Union  industry  within  the  meaning  of  Article  4(1)  and  Article 
5(4) of the basic Regulation. 

(76)  As  indicated  under  recital  (10),  a  sample  consisting  of  three  producers/producer 
groups  companies  was  selected  out  of  the  following  20  Union  producers  which 
submitted the required information. 

– 

– 

– 

– 

– 

– 

– 

– 

BRIDON  Group  composed  of  Bridon  International  Ltd  (United  Kingdom)  and 
Bridon International GmbH (Germany), 

CASAR Drahtseilwerk Saar GmbH (Germany), 

Pfeifer Drako Drahtseilwerk GMBH (Germany),  

Drahtseilwerk Hemer GmbH and Co. KG (Germany), 

Westfälische Drahtindustrie GmbH (Germany), 

Teufelberger Seil GmbH (Germany), 

ZBD Group A.S. (Czech Republic), 

Cables y Alambres especiales, SA (Spain), 

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– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

Manuel Rodrigues de Oliveira Sa & Filhos, SA (Portugal), 

D. Koronakis SA (Greece), 

N. Leventeris SA (Greece), 

Drumet SA (Poland), 

Metizi JSC (Bulgaria), 

Arcelor Mital Wire France (France), 

Brunton Shaw UK Limited (United Kingdom), 

Sirme Si Cabluri S.A. / CORD S.A. (Romania), 

Redaelli Tecna Spa (Italy), 

Remer SRL (Italy), 

Metal Press SRL (Italy), 

Randers Reb International A/S (Danemark). 

(77) 

It  is  noted  that  the  three  sampled  Union  producers  accounted  for  40%  of  the  total 
Union production during the RIP, whilst the above 20 Union producers accounted for 
96%  of  the  total  Union  production  during  the  RIP  which  is  considered  to  be 
representative of the entire Union production 

E. SITUATION ON THE UNION MARKET 

1. 

Consumption in the Union market 

(78)  Union  consumption  was  established  on  the  basis  of  the  sales  volumes  of  the  Union 

industry on the Union market, and Eurostat data for all EU imports.  

(79)  Union  consumption  decreased  by  21%  from  255.985  tonnes  to  203.331  tonnes 
between  2007  and  the  RIP.  Specifically,  after  increasing  slightly  by  1%  in  2008,  it 
dropped  significantly  by  22  percentage  points  in  2009  as  a  consequence  of  the 
economic downturn and remained at a similar level in the RIP. 

Union consumption (in tonnes) 

2007 
255.986 
100 

2008 
257.652 
101 

2009  RIP 

201.975 
79 

203.331 
79 

Index 

2. 

Imports from the countries concerned 

2.1. 

Cumulation 

(80) 

In the previous investigations, imports of SWR originating in the PRC, South Africa 
and Ukraine were assessed cumulatively in accordance with Article 3(4) of the basic 
Regulation. It was examined whether a cumulative assessment was also appropriate in 
the current investigation. 

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(81) 

In this respect, it was found that the margin of dumping established in relation to the 
imports  from  each  country  was  more  than  de  minimis.  As  regards  the  quantities,  a 
prospective analysis of the likely export volumes by each country, should measures be 
repealed,  was performed.  It  revealed that imports  from  the  PRC  and  Ukraine,  unlike 
South Africa, would be likely to increase to levels significantly above those reached in 
the RIP and certainly exceed the negligibility threshold, if measures were repealed. As 
to  South  Africa,  it  was  found  that  the  capacity  to  increase  export  quantities  to  the 
Union  was  very  limited  in  view  of  the  low  spare  capacity  and  the  fact  that  third 
country markets or the domestic market could absorb additional production, if any. 

(82)  With  regard  to  the  conditions  of  competition  between  the  imported  products,  it  was 
found that imports from South Africa were not directly competing with imports from 
the other two countries. In this regard, the prices of the product types imported from 
South Africa were considerably higher, as shown in recitals (87) and (91) below, than 
the imports from the other two countries. Indeed, these higher prices led to the absence 
of  price  undercutting  by  imports  from  South  Africa  contrary  to  the  finding  of 
significant price undercutting by imports from the other two countries. 

(83)  Regarding imports from the three countries concerned, the investigation has found that 
the imported SWR from these countries were alike in their basic physical and technical 
characteristics. Furthermore, the various types of imported SWR were interchangeable 
with  types  produced  in  the  Union  and  they  were  marketed  in  the  Union  during  the 
same  period.  In  light  of  the  above,  it  was  considered  that  the  imported  SWR 
originating in the countries concerned competed with the SWR produced in the Union. 

(84)  On the basis of the above, it was therefore considered that the criteria set out in Article 
3(4)  of  the  basic  Regulation  were  met  with  regard  to  the  PRC  and  Ukraine.  Imports 
from these two countries were therefore examined cumulatively. Since the criteria set 
in  Article  3(4)  and  in  particular  the  conditions  of  competition  between  imported 
products thereof, were not met with regard to South Africa, imports originating in this 
country were examined individually. 

2.2. 

Imports from the PRC and Ukraine 

2.2.1.  Volume, market share and prices of imports 

(85)  According  to  Eurostat  data,  the  volume  of  imports  of  the  product  concerned 
originating in the PRC and Ukraine decreased by 54% during the period considered. A 
considerable  drop by 43 percentage points was observed in 2009 then followed by a 
further decrease by 13 percentage points in the RIP. 

(86)  The  market  share  of  Chinese  and  Ukrainian  imports  decreased  from  3,8%  to  2,2% 

during the period considered.  

(87)  As  far  as  import  prices  are  concerned,  they  increased  by  29%  over  the  period 
considered.  After  increasing  by  11%  in  2008,  they  increased  further  in  2009  and 
remained stable in the RIP. 

Import (in tonnes) 
Index 

Market share% 

2007 
9.844 
100 
3,8% 

2008 
10.081 
102 
3,9% 

2009  RIP 
5.830 
59 
2,9% 

4.553 
46 
2,2% 

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Index 

Price of import 

Index 

100 
1.073 
100 

102 
1.195 
111 

75 
1.394 
130 

58 
1.388 
129 

2.2.2.  Price undercutting 

(88) 

In  view  of  the  absence  of  cooperation  by  the  Chinese  and  Ukrainian  exporting 
producers,  price  undercutting  had  to  be  established  on  import  statistics  by  CN  code 
using information collected on the basis of Article 14(6) of the basic Regulation. In the 
RIP, the undercutting margin for imports of SWR originating in the PRC and Ukraine 
ranged, anti-dumping duty excluded, from 47.4% to 58.2%. 

2.3. 

Imports from South Africa 

2.3.1.  Volume, market share and prices of imports from South Africa 

(89)  According  to  Eurostat  data,  the  volume  of  imports  of  the  product  concerned 
originating  in  South  Africa  decreased  by  77%  during  the  period  considered.  A 
considerable drop by  94  percentage points was observed in 2009 then followed by a 
small increase of 17 percentage points in the RIP. 

(90)  The market share of South African imports has decreased from 0,5% to 0,1% during 

the period considered.  

(91)  As far as import prices are concerned, they have increased steadily by 52% over the 

period considered. 

Import (in tonnes) 

Market share% 

Price of import 

index 

index 

index 

2.3.2.  Price undercutting 

2007 
1.229 
100 
0,5% 
100 
1.504 
100 

2008 
846 
69 
0,3% 
68 
1.929 
128 

2009  RIP 

73 
6 
0,0% 
7 
2.217 
147 

281 
23 
0,1% 
29 
2.280 
152 

(92)  Price  undercutting  was  established  using  the  export  prices  of  the  cooperating  South 
African producer, without anti-dumping duty, and was found to be negative. In view 
of the absence of any other exporting producer in South Africa, this conclusion is also 
valid for the country as a whole. 

3. 

Imports from countries to which the measures were extended 

3.1. 

South Korea 

(93)  As  mentioned  in  recital  (3)  above,  it  was  found  that  circumvention  of  the  original 
measures  concerning  the  PRC  took  place  via  the  Republic  of  Korea  (South  Korea). 
Consequently, the anti-dumping duty imposed on imports originating in the PRC was 
extended  to  imports  of  the  same  SWR  consigned  from  South  Korea,  with  the 
exception of those produced by eleven genuine South Korean producers.  

(94)  Following the anti-circumvention investigation and the extension of the anti-dumping 
duty to imports consigned from South Korea, imports decreased significantly and the 

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market  share  decreased  from  18.7%  in  2007  to  12,8%  in  the  RIP.  This  percentage 
appears to correspond to the share of genuine Korean exporting producers which were 
granted each an exemption. 

3.2. 

Moldova 

(95) 

Imports  originating  in  or  consigned  from  Moldova  were  found  to  be  close  to  zero 
during the period considered. Hence, no further analysis was deemed necessary. 

3.3. 

Morocco 

(96) 

Imports originating in or consigned from Morocco declined by 51% during the period 
considered.  Their  market  share  represented  less  than  0.5%  during  the  period 
considered.  

4. 

Other country concerned by anti-dumping measures 

(97)  According  to  Eurostat  data,  the  volume  of  imports  of  certain  iron  or  steel  ropes  and 
cables  originating  in  the  Russian  Federation  as  defined  in  Article  1(1)  of  Regulation 
(EC) No 1601/200112decreased by 41% during the period considered.  

(98)  The market share of Russian imports decreased from 1.5% in 2007 to 1.1% in the RIP. 

5. 

Economic Situation of the Union Industry 

(99)  Pursuant  to  Article  3(5)  of  the  basic  Regulation,  the  Commission  examined  all 
relevant  economic  factors  and  indices  having  a  bearing  on  the  state  of  the  Union 
industry. 

5.1. 

Preliminary remarks 

(100)  In  view  of  the  fact  that  sampling  was  used  with  regard  to  the  Union  industry,  the 
injury was assessed both on the basis of information collected at the level of the entire 
Union  industry  ('UI')  as  defined  in  recital  (72)  and  on  the  basis  of  information 
collected at the level of the sampled Union producers. 

(101)  Where recourse is made to sampling, in accordance with established practice, certain 
injury  indicators  (production,  capacity,  productivity,  stocks,  sales,  market  share, 
growth  and  employment)  are  analysed  for  the  UI  as  a  whole,  while  those  injury 
indicators  relating  to  the  performance  of  individual  companies,  i.e.  prices,  costs  of 
production, profitability, wages, investments, return on investment, cash flow, ability 
to raise capital are examined on the basis of the information collected at the level of 
the sampled Union producers. 

(102)  One of the producers of the sampled group Bridon, Bridon International Limited, kept 
its accounts in GBP during the period considered. As a result, certain injury indicators 
were influenced by the fluctuation of the exchange rate between GBP and EUR during 
the period considered. 

12 

OJ L 211, 04.08.2001, p. 1. 

EN 

20 

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5.2. 

Data relating to the UI  

(a)  Production 

(103)  The  UI’s  production  decreased  by  9%  between  2007  and  the  RIP,  i.e.  from  182.681 
tonnes  to  165.394  tonnes.  Production  volume  remained  unchanged  in  2008  before 
dropping  significantly  by  13%  in  2009  as  a  consequence  of  the  global  economic 
downturn.  It  recovered  in  the  RIP  and  increased  by  4  percentage  points.  The 
production  volume  decreased  less  than  the  consumption  on  the  Union  market  as  a 
consequence of the demand on non-EU markets. 

UI 
Production volume (in tonnes) 

2007 
182.681 
100 

2008 
182.691 
100 

2009  RIP 

159.266 
87 

165.394 
91 

index 

(b)  Capacity and capacity utilisation rates 

(104)  Production  capacity  decreased  by  6%  during  the  period  considered.  In  2009,  it 
decreased by 10% before increasing by 4 percentage points in the RIP. As production 
declined relatively more than capacity, the resulting capacity utilisation declined, from 
69% in 2007 to 66% in the RIP. 

UI 
Capacity 

Capacity utilisation 

(c)  Stocks 

2007 
265.779 
100 
69% 
100 

2008 
261.383 
98 
70% 
102 

2009  RIP 

239.312 
90 
67% 
97 

249.254 
94 
66% 
97 

index 

index 

(105)  The level of closing stocks of the UI increased in 2008 and 2009 but decreased in the 

RIP to the 2007 level.  

UI 
Closing stock (in tonnes) 

(d)  Sales volume 

2007 
12.656 
100 

2008 
13.254 
105 

2009  RIP 

12.790 
101 

12.651 
100 

index 

(106)  The  sales  by  the  UI  on  the  Union  market  decreased  by  20%  between  2007  and  the 
RIP. After decreasing by 5% in 2008, sales volume further decreased by 24 percentage 
points  in  2009  as  a  consequence  of  the  economic  downturn.  This  development  is  in 
line with the evolution of the Union market, which declined by 21% between 2007 and 
the RIP as a result of the economic downturn. 

UI 
Sales to unrelated parties in the Union (in 
tonnes) 

index 

(e)  Market share 

2007 

2008 

2009  RIP 

112.387 
100 

106.431 
95 

80.340 
71 

89.551 
80 

(107)  The  UI  managed  to  keep  its  market  share  unchanged  at  44%  between  2007  and  the 
RIP.  The  years  2008  and  2009  however  showed  a  drop  in  market  share  down  to 
respectively 41 and 40% of the Union consumption. 

EN 

21 

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UI 
Market share  

(f)  Growth 

2007 
44% 
100 

2008 
41% 
94 

2009  RIP 
40% 
91 

44% 
100 

index 

(108)  Between 2007 and the RIP, when the Union consumption decreased by 21%, the sales 
volume of the UI decreased by only 20%. The UI thus slightly gained market share, 
whereas  the  imports  from  the  countries  concerned  lost  almost  2  percentage  points 
during the same period. 

(g)  Employment 

(109)  The level of employment of the UI declined by 12% between 2007 and the RIP. The 
main decrease took place in 2009 when employment decreased by 8 percentage points. 
This shows that the UI was able to adapt to the new market situation. 

UI 
Employment 

(h)  Productivity 

2007 
3.052 
100 

2008 
2.978 
98 

2009  RIP 
2.752 
90 

2.694 
88 

index 

(110)  Productivity of the UI’s workforce, measured as output per full time equivalent ('FTE') 
employed  per  year,  was  volatile  over  the  period  considered  as  it  increased  by  2 
perentage  points  in  2008  then  decreased  by  5  percentage  points  in  2009  before 
increasing by 6 percentage points in the RIP. 

UI 
Productivity 

2007 
59,9 
100 

2008 
61,3 
102 

2009  RIP 
57,9 
97 

61,4 
103 

index 

(i)  Magnitude of dumping margin 

(111)  As concerns the impact on the UI of the magnitude of the actual margins of dumping 
found  which  were  high,  given  the  overall  volume  of  the  imports  from  the  countries 
concerned and the existence of anti-dumping duties, this impact cannot be considered 
to be significant. 

5.3. 

Data relating to the sampled Union producers 

(j) 

Sales prices and factors affecting domestic prices 

(112)  Unit  sales  prices  of  the  UI  increased  by  11%  between  2007  and  the  RIP.  Prices 
increased progressively by 16% until 2009 before dropping by 5 percentage points in 
the  RIP.  This  price  development  is  linked  to  the  fact  that  the  UI  was  able  to  spread 
highly  priced  orders  taken  before  the  economic  downturn  over  to  2009.  It  is  also 
linked  to  the  progressive  migration  of  the  UI  towards  more  highly  priced  SWR, 
namely larger diameter SWR. 

Sampled producers 
Average unit sales price in the EU 
(EUR/tonne) 

2007 

2008 

2009  RIP 

Index 

3.219 
100 

3.492 
108 

3.720 
116 

3.560 
111 

(k)  Wages 

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(113)  Between 2007 and the RIP, the average wage per FTE decreased by 12% during the 
period  considered.  No  meaningful  conclusion  should  however  be  drawn  from  the 
below table as wages per employee were heavily influenced by the fluctuation of the 
GBP – EUR exchange rate during the period considered. 

Sampled producers 
Wages per FTE (EUR) 

2007 
55.062 
100 

2008 
50.570 
92 

2009  RIP 

46.638 
85 

48.329 
88 

index 

(l) 

Investments and ability to raise capital 

(114)  Although  investments  in  SWR  decreased  by  32%  over  the  period  considered,  they 
were  significant  and  amounted  to  over  35  million  EUR.  Investments  mainly 
concentrated on high margin SWR. The sampled producers did not face difficulty to 
raise capital over the period considered as the investments could usually be paid back 
within a few years. 

Sampled producers 
Investments (EUR 1000) 

2007 
12.331 
100 

2008 
9.038 
73 

2009  RIP 
6.283 
51 

8.406 
68 

index 

(m)  Profitability on the EU market 

(115)  The sampled producers managed to achieve profits over the whole period considered. 
The profits achieved from 2008 to the RIP were above the target profit of 5% set in the 
original  investigation.  The  results  achieved  by  the  sampled  producers  are  mainly 
explained  by  the  price  development  between  2007  and  the  RIP  and  by  the  sustained 
global  demand  for  the  sampled  producers  that  enabled  them  to  dilute  fix  costs.  The 
drop in profitability in the RIP is explained by a drop in prices and by a decrease in 
production volume which had a negative impact on cost of production. 

Sampled producers 
Profitability on the EU market (%) 

2007 
3,6% 
100 

2008 
5,7% 
158 

2009  RIP 

11,1% 
307 

6,5% 
179 

index 

(n)  Return on investments 

(116)  The return on investments (ROI), expressed as the total profit generated by the SWR 
activity in percent of the net book value of assets directly and indirectly related to the 
production  of  SWR,  broadly  followed  the  above  profitability  trends  over  the  whole 
period considered.  

Sampled producers 
ROI (%) 

(o)  Cash flow 

2007 
24,5% 
100 

2008 
45% 
184 

2009  RIP 

76,4% 
312 

69,6% 
284 

index 

(117)  The  cash-flow  situation  improved  between  2007  and  the  RIP,  it  followed  the  above 

profitability trends over the whole period considered. 

Sampled producers 
Cash Flow (EUR 1000) 

2007 
20.255 
100 

2008 
38.579 
190 

2009  RIP 

60.276 
298 

45.841 
226 

index 

(p)  Recovery from the effects of past dumping 

EN 

23 

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(118)  While  the  indicators  examined  above  show  that  the  UI  suffered  from  the  economic 
downturn  as  sales  volume,  production  volume,  employment  and  investments  went 
down, they also indicate that the UI adapted its production equipment to better face the 
new  economic  environment  and  be  able  to  seize  opportunities  on  EU  and  non  EU 
markets  in  segments  where  high  margins  can  be  achieved.  The  improvement  in  the 
economic and financial situation of the UI, further to the imposition of anti-dumping 
measures  in  1999,  evidence  that  that  the  measures  are  effective  and  that  the  UI 
recovered from the effects of past dumping practices. 

(119)  The  Ukrainian  Government  indicated  that  it  failed  to  understand  how  the  lifting  of 
anti-dumping duties against Ukrainian imports could injure the Union industry when 
its injury indicators mostly showed positive trends in a period of economic crisis and 
especially between 2009 and the RIP. This analysis was however based on a limited 
period of time and not the whole period considered. It should be noted that this period 
is  not  representative  of  the  overall  trend,  which  started  from  a  situation  where  the 
target  profit  was  not  even  achieved  and  was  eventually  reached  in  spite  of  the 
economic crisis which affected the Union industry and its indicators at the end of the 
period  considered.  Indeed,  as  indicated  in  recitals  (112)  and  (115),  the  relatively 
positive overall picture showed by the Union industry is explained on the one hand by 
the heavy order book at the end of 2008 that was spread over 2009 and by the increase 
in consumption on non-EU markets which contributed to overall positive trends with 
regard to profit-related indicators. 

5.4. 

Conclusion 

(120)  Although  consumption  decreased  by  21%,  the  UI  managed  to  maintain  its  market 
share, prices increased by 11%, stocks remained at a reasonable level while production 
volume  decreased  less  than  consumption.  In  terms  of  profitability,  the  UI  was 
profitable  throughout  the  period  considered.  Considering  the  above,  it  can  be 
concluded that the UI did not suffer material injury over the period considered. 

F. LIKELIHOOD OF RECURRENCE OF INJURY 

(121)  As explained in recitals (55) and (68), the exporting producers in the PRC and Ukraine 
have the potential to substantially raise their exports volume to the Union by using the 
available  spare  capacities.  Indeed,  significant  capacities  are  available  reaching  more 
than  500.000  tonnes  which  represents  the  entire  Union  consumption.  It  is  therefore 
likely  that  substantial  quantities  of  Chinese  and  Ukrainian  SWR  will  penetrate  the 
Union  market  to  regain  lost  market  share  and  increase  it  further  should  measures  be 
repealed. 

(122)  As highlighted in recital (88) prices of imports from PRC and Ukraine were found to 
be low and to undercut EU prices. These low prices would most likely continue to be 
charged.  Indeed  in  the  case  of  Ukraine,  as  indicated  in  recital  (67)  prices  may  even 
drop further. Such a price behaviour, coupled with the ability of the exporters in these 
countries  to  deliver  significant  quantities  of  the  product  concerned  on  the  Union 
market, would in all  likelihood  have a downward  effect  on  prices  in  the  EU  market, 
with  an  expected  negative  impact  on  the  economic  situation  of  the  UI.  As  shown 
above, the financial performance of the UI is closely linked to the price level on the 
EU market. It is therefore likely that if the UI were exposed to increased volumes of 
imports from the PRC and Ukraine at dumped prices it would result in a deterioration 

EN 

24 

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of  its  financial  situation  as  found  in  the  original  investigation.  On  this  basis,  it  is 
therefore concluded, that the repeal of the measures against imports originating in the 
PRC and Ukraine would in all likelihood result in the recurrence of injury to the UI. 

(123)  As  far  as  South  Africa  is  concerned  and  as  indicated  in  recital  (63),  spare  capacities 
appear to be limited. As highlighted in recital (92), South African export prices to EU 
were found not to undercut the UI prices. Given the low volume exported to the EU 
that  entered  the  EU  market,  exports  prices  of  South  African  SWR  to  the  five  main 
non-EU markets were also compared to the UI prices on a product type basis. These 
prices were found not to undercut the UI prices either.  

(124)  Considering  the  limited  spare  capacities  and  the  absence  of  price  undercutting,  it  is 
concluded  that  the  repeal  of  the  measures  on  imports  originating  in  South  Africa 
would in all likelihood not result in the recurrence of injury to the UI. 

1. 

Introduction 

G. UNION INTEREST 

(125)  In  compliance  with  Article  21  of  the  basic  Regulation,  it  was  examined  whether 
maintenance  of  the  existing  anti-dumping  measures  against  the  PRC  and  Ukraine 
would be against the interest of the Union as a whole. The determination of the Union 
interest was based on an appreciation of all the various interests involved. It should be 
recalled that, in the previous investigations, the adoption of measures was considered 
not  to  be  against  the  interest  of  the  Union.  Furthermore,  the  fact  that  the  present 
investigation  is  a  review,  thus  analysing  a  situation  in  which  anti-dumping  measures 
have already been in place, allows the assessment of any undue negative impact on the 
parties concerned by the current anti-dumping measures. 

(126)  On  this  basis,  it  was  examined  whether,  despite  the  conclusions  on  the  likelihood  of 
recurrence of injurious dumping, compelling reasons existed which would lead to the 
conclusion  that  it  is  not  in  the  Union  interest  to  maintain  measures  against  imports 
originating in the PRC and Ukraine in this particular case. 

2. 

Interest of the UI 

(127)  The  UI  has  proven  to  be  a  structurally  viable  industry.  This  was  confirmed  by  the 
positive development of its economic situation observed during the period considered. 
In  particular,  the  fact  that  the  UI  maintained  its  market  share  over  the  period 
considered  contrasts  sharply  with  the  situation  preceding  the  imposition  of  the 
measures  in  1999.  Also,  it  is  noted  that  the  UI  improved  its  profit  situation  between 
2007 and the RIP. It is further recalled that circumvention had been found by imports 
from  Morocco,  Moldova  and  South  Korea.  Had  this  development  not  occurred,  the 
situation of the UI could have been even more favourable. 

(128)  It can reasonably be expected that the UI will continue to benefit from the measures to 
be  maintained.  Should  the  measures  against  imports  originating  in  the  PRC  and 
Ukraine not be maintained, it is likely that the UI will start again to suffer injury from 
increased imports at dumped prices from these countries and that its financial situation 
will deteriorate. 

3. 

Interest of importers 

EN 

25 

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(129)  It  is  recalled  that  in  the  previous  investigations  it  was  found  that  the  impact  of  the 
imposition  of  measures  would  not  be  significant.  As  indicated  in  recital  (11),  two 
importers  replied  to  the  questionnaire  and  cooperated  fully  in  this  proceeding.  They 
indicated  that  measures  were  pushing  prices  up.  The  investigation  however  revealed 
that other sources of supply existed and that import prices from other countries were at 
similar levels as the Chinese ones.  

(130)  On the basis of the above, it was concluded that the current measures in force had no 
substantial negative effect on their financial situation and that the continuation of the 
measures would not unduly affect the importers.  

4. 

Interest of users 

(131)  SWR are used in a wide variety of applications and therefore a large number of user 
industries  might  be  concerned,  such  as  fishing,  maritime/shipping,  oil  and  gas 
industries,  mining,  forestry,  aerial  transport,  civil  engineering,  construction,  elevator. 
The above list of user industries is only indicative. 

(132)  The Commission sent questionnaires to all known users. As mentioned in recital (16), 
only one user cooperated in this proceeding. It indicated that it did not suffer from the 
existence  of  the  measures  as  other  sources  were  available  and  that  SWR  did  not 
represent a significant share of its cost of production. In this context, it was concluded 
that given the negligible incidence of the cost of SWR on the user industries and the 
existence  of  other  available  sources  of  supply,  the  measures  in  force  do  not  have  a 
significant effect on the user industry. 

5. 

Conclusion on Union interest 

(133)  Given  the  above,  it  is  concluded  that  there  are  no  compelling  reasons  against  the 

maintenance of the current anti-dumping measures. 

H. ANTI-DUMPING MEASURES 

(134)  All  parties  were  informed  of  the  essential  facts  and  considerations  on  the  basis  of 
which  it  is  intended  to  recommend  that  the  existing  measures  be  maintained  on 
imports  of  the  product  concerned  originating  in  the  PRC  and  Ukraine  and  be 
terminated with regard to imports originating in South Africa. They were also granted 
a  period  to  make  representations  subsequent  to  this  disclosure.  No  comments  were 
received which were of a nature to change the above conclusions. 

(135)  It  follows  from  the  above  that,  as  provided  for  by  Article  11(2)  of  the  basic 
Regulation, the anti-dumping measures applicable  to  imports  of  SWR,  originating  in 
the PRC and Ukraine should be maintained. In opposition, the measures applicable to 
imports from South Africa should be allowed to lapse. 

(136)  As  outlined  under  recitals  (2)  and  (3)  above,  the  anti-dumping  duties  in  force  on 
imports of the product concerned from Ukraine and the PRC were extended to cover, 
in addition, imports of SWR consigned from Moldova, Morocco and the Republic of 
Korea  respectively,  whether  declared  as  originating  in  Moldova,  Morocco  or  the 
Republic of Korea or not. The anti-dumping duty to be maintained on imports of the 
product concerned, as set out in recital (2), should continue to be extended to imports 
of  SWR  consigned  from  Moldova,  Morocco  and  the  Republic  of  Korea,  whether 

EN 

26 

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declared as originating in Moldova, Morocco and the Republic of Korea or not.  The 
exporting producer in Morocco who was exempted from the measures as extended by 
Regulation  (EC)  No  1886/2004  should  also  be  exempted  from  the  measures  as 
imposed by this Regulation. The eleven exporting producers in South Korea who were 
exempted from the measures as extended by Regulation (EC) No 400/2010 should also 
be exempted from the measures as imposed by this Regulation, 

HAS ADOPTED THIS REGULATION: 

Article 1 

1. 

2. 

3. 

4. 

A  definitive  anti-dumping  duty  is  hereby  imposed  on  imports  of  steel  ropes  and 
cables including locked coil ropes, excluding ropes and cables of stainless steel, with 
a maximum cross-sectional dimension exceeding 3 mm, currently falling within CN 
codes ex 7312 10 81, ex 7312 10 83, ex 7312 10 85, ex 7312 10 89 and ex 7312 10 
98  (TARIC  codes  7312  10  81  11,  7312  10  81  12,  7312  10  81  13,  7312  10  81  19, 
7312 10 83 11, 7312 10 83 12, 7312 10 83 13, 7312 10 83 19, 7312 10 85 11, 7312 
10 85 12, 7312 10 85 13, 7312 10 85 19, 7312 10 89 11, 7312 10 89 12, 7312 10 89 
13, 7312 10 89 19, 7312 10 98 11, 7312 10 98 12, 7312 10 98 13 and 7312 10 98 19) 
and originating in the People's Republic of China and Ukraine. 

The rate of the definitive anti-dumping duty applicable to the CIF net, free-at-Union-
frontier price, before duty, of the product described in paragraph 1 and originating in 
the People's Republic of China shall be 60,4 %. 

The rate of the definitive anti-dumping duty applicable to the CIF net, free-at-Union-
frontier price, before duty, of the product described in paragraph 1 and originating in 
Ukraine shall be 51,8 %. 

The  definitive  anti-dumping  duty  applicable  to  imports  originating  in  the  People’s 
Republic  of  China,  as  set  out  in  paragraph  2,  is  hereby  extended  to  imports  of  the 
same  steel  ropes  and  cables  consigned  from  Morocco,  whether  declared  as 
originating in Morocco or not (TARIC codes 7312 10 81 12, 7312 10 83 12, 7312 10 
85 12, 7312 10 89 12 and 7312 10 98 12) with the exception of those produced by 
Remer Maroc SARL, Zone Industrielle, Tranche 2, Lot 10, Settat, Morocco (TARIC 
additional code A567) and to imports of the same steel ropes and cables consigned 
from  the  Republic  of  Korea,  whether  declared  as  originating  in  the  Republic  of 
Korea or not (TARIC codes 7312 10 81 13, 7312 10 83 13, 7312 10 85 13, 7312 10 
89 13 and 7312 10 98 13), with the exception of those produced by the companies 
listed below: 

Country 

Company 

TARIC additional 
code 

The Republic of Korea  Bosung Wire Rope Co, Ltd., 568, Yongdeok-ri,  

Hallim-myeon, Gimhae-si, Gyeongsangnam-do, 621-87

Chung Woo Rope Co., Ltd. 1682-4, Songjung-Dong, 
Gangseo-Gu, Busan 

CS Co., Ltd, 287-6 Soju-Dong Yangsan-City,  
Kyoungnam 

A969 

A969 

A969 

EN 

27 

   EN 

 
 
 
Cosmo Wire Ltd., 4-10, Koyeon-Ri, Woong  
Chon-Myon Ulju-Kun, Ulsan 

Dae Heung Industrial Co., Ltd., 185 Pyunglim - Ri, 
Daesan-Myun, Haman – Gun, Gyungnam 

DSR Wire Corp., 291, Seonpyong-Ri, Seo-Myon, 
Suncheon-City, Jeonnam 

Kiswire Ltd., 20t h Fl. Jangkyo Bldg., 1, Jangkyo-Dong
Chung-Ku, Seoul 

Manho Rope & Wire Ltd., Dongho Bldg, 85-2, 4 Street 
Joongang-Dong, Jong-gu, Busan 

Shin Han Rope CO.,LTD, 715-8, Gojan-dong, Namdon
gu, Incheon 

Ssang Yong Cable Mfg. Co., Ltd, 1559-4 Song-Jeong 
Dong, Gang-Seo Gu, Busan 

Young Heung Iron & Steel Co., Ltd, 71-1 Sin-Chon Do
Changwon City, Gyungnam 

A969 

A969 

A969 

A969 

A969 

A969 

A969 

A969 

5. 

6. 

7. 

The definitive anti-dumping duty applicable to imports originating in Ukraine, as set 
out in paragraph 3, is hereby extended to imports of the same steel ropes and cables 
consigned  from  Moldova,  whether  declared  as  originating  in  Moldova  or  not 
(TARIC codes 7312 10 81 11, 7312 10 83 11,7312 10 85 11,7312 10 89 11 and 7312 
10 98 11. 

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

The review proceeding concerning imports of steel ropes and cables including locked 
coil  ropes,  excluding  ropes  and  cables  of  stainless  steel,  with  a  maximum  cross-
sectional  dimension  exceeding  3  mm,  originating  in  South  Africa  and  currently 
falling within CN codes ex 7312 10 81, ex 7312 10 83, ex 7312 10 85, ex 7312 10 89 
and ex 7312 10 98 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 

EN 

28 

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

Done at Brussels,  

For the Council 
The President 

EN 

29 

   EN