Proposal for a COUNCIL REGULATION terminating the interim review of the anti-dumping measures concerning imports of furfuraldehyde originating in the People's Republic of China and repealing those measures
Date: 2012-05-23
Institutions: European Commission
Subjects: China, anti-dumping duty, chemical product, import (EU), originating product

EUROPEAN COMMISSION 

Brussels, 23.5.2012  
COM(2012) 227 final 

2012/0114 (NLE) 

Proposal for a 

COUNCIL REGULATION 

terminating the interim review of the anti-dumping measures concerning imports of 
furfuraldehyde originating in the People's Republic of China and repealing those 
measures 

EN 

   EN 

 
 
 
  
 
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 Community1 (‘the basic Regulation’) in the interim review proceeding concerning 
the  anti-dumping  duty  in  force  in  respect  of  imports  of  furfuraldehyde  originating  in  the 
People's Republic of China (‘PRC’). 

•  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. 

•  Existing provisions in the area of the proposal 

A definitive anti-dumping duty on imports of furfuraldehyde originating in the PRC was first 
imposed  by  Council  Regulation  (EC)  No  95/952,  and  further  confirmed  by  Council 
Regulations (EC) No 2722/19993, (EC) No 639/20054, and (EU) No 453/20115. 

•  Consistency with other policies and objectives of the Union 

Not applicable. 

2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

•  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. 

1 
2 
3 
4 
5 

OJ L 343, 22.12.2009, p. 51. 
OJ L 15, 21.1.1995, p. 11. 
OJ L 328, 22.12.1999, p. 1. 
OJ L 107, 28.4.2005, p. 1. 
OJ L 123, 12.5.2011, p. 1. 

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

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

On  5  July  2011  the  Commission  announced  an  interim  review  of  the  anti-dumping  duty  in 
force  in  respect  of  imports  of  furfuraldehyde  originating  in  the  PRC  by  a  notice  ('notice  of 
initiation') published in the Official Journal of the European Union. 

In the absence of cooperation from parties, the review investigation found evidence that the 
Union industry was not injured during the review investigation period and that this was of a 
lasting nature. The investigation also found that termination of the measures would be in the 
interest of the Union. 

Therefore,  it  is  suggested  that  the  Council  adopt  the  attached  proposal  for  a  Regulation  in 
order to terminate the existing measures, which should be published in the Official Journal of 
the European Union by 4 July 2012 at the latest. 

•  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. 

•  Subsidiarity principle 

The proposal falls under the exclusive competence of the European 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  basic  Regulation  and  leaves  no  scope  for  national 
decision. 

Indication  of  how  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 basic Regulation does not provide for alternative options. 

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4. 

BUDGETARY IMPLICATION 

Although this would remove a duty in force, the proposal has no implications for the Union 
budget given that all imports are at present made under the inward processing regime. 

EN 

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2012/0114 (NLE) 

Proposal for a 

COUNCIL REGULATION 

terminating the interim review of the anti-dumping measures concerning imports of 
furfuraldehyde originating in the People's Republic of China and repealing those measures 

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  Community6  (‘the  basic 
Regulation’), and in particular Articles 9 and 11(3), (5) and (6) thereof, 

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

Whereas: 

1. 

(1) 

(2) 

(3) 

(4) 

A. 

PROCEDURE 

Measures in force 

In 1995, the Council imposed by Regulation (EC) No 95/957 a definitive anti-dumping duty 
in  the  form  of  a  specific  duty  on  imports  of  furfuraldehyde  originating  in  the  People's 
Republic  of  China  (‘PRC’  or  'the  country  concerned')  (‘the  original  anti-dumping 
measures’). The specific duty rate was set at EUR 352 per tonne. 

Following an interim review initiated in May 1997 upon the request of a Chinese exporter, 
the  measures  were  maintained  by  Regulation  (EC)  No  2722/19998  for  a  further  period  of 
four years.  

In  April  2005,  following  an  expiry  review,  the  Council  by  Regulation  (EC)  No  639/20059 
extended the measures for a further period of five years. 

In  May  2011,  following  a  further  expiry  review,  the  Council  by  Regulation  (EU)  No 
453/201110 extended the measures for a further period of five years. The specific duty rate 
was set at the same level as in the original anti-dumping measures, i.e. EUR 352 per tonne. 

2. 

Initiation of an interim review 

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10 

OJ L 343, 22.12.2009, p. 51. 
OJ L 15, 21.1.1995, p. 11. 
OJ L 328, 22.12.1999, p. 1. 
OJ L 107, 28.4.2005, p. 1. 
OJ L 123, 12.5.2011, p. 1. 

EN 

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(5) 

(6) 

Recital (84) of Council Regulation (EU) No 453/2011 stated that the Council considered it 
appropriate to assess if the level of the duty was still relevant, given that the specific duty 
had  been  established  on  the  basis  of  the  findings  of  the  original  investigation  in  1995  and 
never  revised.  The  Commission  would  therefore  consider  the  ex  officio  initiation  of  an 
interim review pursuant to Article 11(3) of the basic Regulation. 

Having determined that the Commission had at its disposal sufficient prima facie evidence 
for  the  initiation  of  an  ex  officio  interim  review,  and  after  consulting  the  Advisory 
Committee, the Commission announced on 5 July 2011, in a notice published in the Official 
Journal  of  the  European  Union11  ('the  notice  of  initiation'),  the  initiation  of  an  interim 
review pursuant to Article 11(3) of the basic Regulation. 

3. 

Investigation  

3.1. 

Investigation period 

(7) 

The investigation concerning dumping covered the period from 1 July 2010 to 30 June 2011 
(‘the review investigation period’ or ‘RIP’). The examination of the trends relevant for the 
assessment  of  injury  covered  the  period  from  1  January  2008  to  the  end  of  the  review 
investigation period (‘the period considered’). 

3.2. 

Parties concerned by this investigation 

(8) 

(9) 

The Commission officially advised the Union industry, exporting producers in the country 
concerned,  importers,  users  known  to  be  concerned,  and  the  authorities  of  the  country 
concerned of the initiation of the interim review. 

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. 

3.3. 

Sampling for exporting producers in the People's Republic of China 

(10) 

In view of the apparent large number of exporting producers in the PRC, it was considered 
appropriate to examine whether sampling should be used, in accordance with Article 17 of 
the basic Regulation. In order to enable the Commission to decide whether sampling would 
be  necessary  and,  if  so,  to  select  a  sample,  the  exporting  producers  in  the  PRC  were 
requested to make themselves known within 15 days of the initiation of the review and to 
provide  the  Commission  with  the  information  requested  in  the  notice  of  initiation.  Given 
that  no  exporting  producers  came  forward  to  cooperate,  sampling  was  therefore  not 
necessary. 

3.4. 

Questionnaire replies and verifications 

(11)  The Commission sent questionnaires to all parties known to be concerned. No other parties 

made themselves known within the deadlines set in the notice of initiation. 

(12)  No replies to the questionnaires were received from the two Union producers, the Chinese 
exporting producers or from any importers or users. One producer in the analogue country, 
Argentina, replied to the questionnaire.  

(13)  Given the lack of cooperation from parties, no verification visits were carried out. 

11 

OJ C 196, 5.7.2011, p. 9. 

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B. 

PRODUCT CONCERNED AND LIKE PRODUCT 

1. 

Product concerned 

(14)  The product concerned by this review is the same as the one in the original investigation and 
the  following  reviews  mentioned  above,  namely  furfuraldehyde  originating  in  the  PRC, 
currently  falling  within  CN  code  2932  12  00  (‘the  product  concerned’).  Furfuraldehyde  is 
also known as 2-furaldehyde or furfural. 

(15)  Furfuraldehyde  is  a  light  yellow  liquid  with  a  characteristic  pungent  odour,  which  is 
obtained  by  processing  different  types  of  agricultural  waste.  Furfuraldehyde  has  two  main 
applications:  as  a  selective  solvent  in  petroleum  refining  for  the  production  of  lubricating 
oils and as raw material for processing into furfuryl alcohol, which is used to make synthetic 
resin for foundry moulds. 

2. 

Like product  

(16)  As in the previous investigations, it was considered that the furfuraldehyde produced in the 
PRC and exported to the EU, the furfuraldehyde produced and sold on the domestic market 
of the analogue country Argentina and the furfuraldehyde manufactured and sold in the EU 
by the Union producers have the same basic physical and chemical characteristics, and the 
same basic uses. They were therefore considered to be like products within the meaning of 
Article 1(4) of the basic Regulation. 

1. 

General 

C. 

DUMPING 

(17)  No  Chinese  exporting  producer  cooperated  with  the  investigation  and  they  did  not  submit 
any information. Therefore, the findings on dumping set out below had to be based on facts 
available,  in  particular  Eurostat  data,  official  export  statistics  of  the  PRC  and  information 
submitted by the company in the analogue country, Argentina. 

2. 

Analogue country 

(18)  Pursuant to Article 2(7)(a) of the basic Regulation normal value was determined on the basis 
of  the  price  or  constructed  value  in  an  appropriate  market  economy  third  country  ('the 
analogue country'), or the price from the analogue country to other countries, including the 
Union, or, where those are not possible, on any other reasonable basis, including the price 
actually  paid  or  payable  in  the  Union  for  the  like  product,  duly  adjusted  if  necessary  to 
include a reasonable profit margin. 

(19)  As  in  the  original  investigation,  Argentina  was  proposed  in  the  notice  of  initiation  as  an 
appropriate  analogue  country  for  the  purposes  of  establishing  normal  value  pursuant  to 
Article 2(7)(a) of the basic Regulation. Following the publication of the notice of initiation, 
no comments concerning the proposed analogue country were received. 

(20)  One producer of furfuraldehyde in Argentina cooperated with the investigation by replying 
to  a  questionnaire.  The  investigation  showed  that  Argentina  had  a  competitive  market  for 
furfuraldehyde with around 90% of the market supplied by local production and the rest by 
imports  from  third  countries.  The  production  volume  in  Argentina  constitutes  more  than 
70%  of  the  volume  of  Chinese  exports  of  the  product  concerned  to  the  EU  for  inward 
processing. The Argentinean market was therefore deemed sufficiently representative for the 
determination of normal value for the PRC. 

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(21) 

It  is  therefore  concluded,  as  in  the  previous  investigations,  that  Argentina  constitutes  an 
appropriate analogue country in accordance with Article 2(7)(a) of the basic Regulation. 

3. 

Dumping of imports during the RIP 

3.1. 

Normal value 

(22)  Normal value was established on the basis of the 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  Argentina  by  unrelated  customers,  since  these  sales  were  found  to  be 
made in the ordinary course of trade. 

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

unrelated customers by the cooperating producer in Argentina. 

(24) 

It  was  first  established  whether  the  total  domestic  sales  of  the  like  product  to  independent 
customers were representative in accordance with Article 2(2) of the basic Regulation, i.e. 
whether they accounted for 5% or more of the total sales volume of the product concerned 
exported  to  the  Union.  The  domestic  sales  of  the  cooperating  producer  in  Argentina  were 
sufficiently representative during the RIP. 

(25)  The  Commission  subsequently  examined  whether  the  domestic  sales  of  the  like  product 
could be regarded as being sold in the ordinary course of trade pursuant to Article 2(4) of the 
basic Regulation. This was done by establishing for the like product sold on the Argentinean 
market the proportion of profitable domestic sales to independent customers during the RIP. 
Since all sales of the like product during the RIP were profitable, normal value was based on 
weighted average of all domestic sales. 

3.2. 

Export price 

(26)  As none of the Chinese exporters to the EU cooperated with the investigation, export prices 
were established on the basis of the facts available. The most appropriate basis was found to 
be  the  information  provided  by  Eurostat  data  in  relation  to  imports  into  the  EU  of  the 
product concerned. Though most of these imports were made under the inward processing 
regime (Chinese furfuraldehyde was further processed into furfuryl alcohol for export), there 
was  no  reason  to  consider  that  they  were  not  a  reasonable  basis  for  establishing  export 
prices.  

3.3. 

Comparison 

(27)  For  the  purposes  of  ensuring  a  fair  comparison  between  the  normal  value  and  the  export 
price in accordance with Article 2(10) of the basic Regulation, due allowance in the form of 
adjustments  was  made  with  regard  to  certain  differences  in  transport,  credit  costs  and 
insurance, which affected prices and price comparability. 

3.4. 

Dumping margin 

(28) 

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 prices at the same level of trade. This comparison showed a margin 
of dumping of 5,6%. 

4. 

Lasting nature of changed circumstances 

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(29)  Further  to  the  analysis  of  the  existence  of  dumping  during  the  RIP,  the  likelihood  of  the 
continuation of dumping should measures be repealed was investigated. Given the fact that 
no  exporting  producer  in  the  PRC  cooperated  in  this  investigation,  the  conclusions  below 
rely on facts available in accordance with Article 18 of the basic Regulation. 

(30) 

In  this  respect  the  following  elements  were  analysed:  Chinese  domestic  demand  and 
consumption,  and  the  development  of  Chinese  exports  to  the  EU  under  the  inward 
processing regime (IPR). 

(31)  According to information available, since 2007 the domestic consumption of furfuraldehyde 
in the PRC has been increasing at a faster pace (an average forecasted annual growth for the 
time period 2007-2012 of approx. 9%) than the Chinese production capacity of that product 
(approx.  +6%).  The  rise  in  Chinese  domestic  furfural  consumption  is  mostly  explained  by 
the  growing  demand  for  furfuraldehyde's  main  downstream  product,  furfuryl  alcohol. 
Chinese production of furfuryl alcohol has been drastically increasing since 1999, reflecting 
an  emphasis  on  manufacturing  higher-value  furfural  products  and  increasing  demand  for 
furan resins from the foundry industry. 

(32)  Moreover,  domestic  demand  for  corn  cob,  the  main  raw  material  used  by  Chinese 
furfuraldehyde producers, has been increasing. With the rising global population, especially 
in  the  PRC  and  India,  and  the  change  from  a  grain  based  diet  to  a  protein  based  diet,  the 
global demand for corn is forecasted to grow at an increased rate. The PRC is the world's 
second  largest  corn  consumer.  In  addition  to  the  increase  in  industrial  uses  of  corn,  the 
Chinese demand for feed and livestock production is growing 3% to 6% annually. Whereas 
the PRC's corn consumption has been growing rapidly over the last few years, its production 
has  been  falling  behind  the  demand.  It  is  expected  that  during  the  time  period  2011-2015 
corn exports from the USA to the PRC will quintuple. It also has to be noted that Chinese 
furfural producers are facing more and more competition from xylose and xylitol producers, 
with whom they share the same feedstock (corn cobs). 

(33)  Concerning Chinese exports to the EU during the RIP, it should be noted that virtually all 
furfuraldehyde from the country concerned is imported exclusively under inward processing 
arrangements  (IPR).  This  practice  started  in  2000  with  approx.  75%  of  Chinese  yearly 
quantities  of  furfuraldehyde  being  shipped  into  the  Union  without  being  subject  to  anti-
dumping  duty,  with  the  aim  of  further  processing  them  into  furfuryl  alcohol  destined  for 
export to third countries. Since 2001, free market imports from the country concerned have 
almost completely ceased. 

(34)  The long-term changes in the domestic demand for furfural in China and the tight supply-
demand situation on the Chinese corn market, along with the structure of Chinese imports to 
the  EU  as  explained  in  the  previous  recital,  seem  to  have  led  to  a  change  in  the  level  of 
dumping  practiced  by  the  Chinese  exporting  producers.  A  comparison  of  Chinese  export 
prices to the EU with the normal value of the product concerned, all duly adjusted, shows a 
decrease in the dumping margin during the RIP, as compared to the previous expiry review 
investigation. 

(35) 

In  conclusion, the above analysis shows that  the  changes  in the Chinese domestic demand 
and  consumption  of  corn  cobs  and  furfuraldehyde  and  consequently  of  prices,  are  of  a 
lasting  nature.  Therefore  it  can  be  concluded  that  if  anti-dumping  measures  are  repealed, 
Chinese exports into the Union would not significantly increase. 

D. UNION INDUSTRY 

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(36)  The  Union  industry  ('UI')  consists  of  two  companies:  Lenzing  AG  (Austria)  and  Tanin 
Sevnica  kemicna  industrija  d.d  (Slovenia),  which  together  account  for  100%  of  Union 
production of the like product in the RIP. On this basis, the two Union producers constitute 
the  Union  industry  within  the  meaning  of  Article  4(1)  and  Article  5(4)  of  the  basic 
Regulation. Neither company replied to the questionnaires sent to them or fully cooperated 
in the investigation. 

(37)  Given the lack of cooperation from the Union industry, data for examining the situation of 
the Union market and injury caused to the Union industry by dumped imports from the PRC 
has been taken from facts available, including data extrapolated from information collected 
in the recent expiry review which covered the period from 1 January 2007 until 31 March 
2010. Any sources given for the data in the tables below therefore relates to the period 2007-
2009 unless specified. Nutrafur, the Spanish producer that lodged the original complaint in 
1994  under  the  name  of  Furfural  Espanol  S.A.,  ceased  production  in  October  2008.  The 
production  figures  of  Nutrafur  in  2008  were  included  in  the  consumption  in  the  Union 
market.  For  reasons  of  confidentiality  data  concerning  the  performance  of  the  Union 
industry are given only in indexed form. 

E. SITUATION ON THE UNION MARKET 

1. 

Consumption in the Union market 

(38)  Union consumption of furfuraldehyde for 2008 and 2009 was established on the basis of the 
verified  sales  volumes  of  the  Union  industry  on  the  Union  market  (including  the  sales  of 
Nutrafur until October 2008 while it was still producing furfuraldehyde) plus imports under 
Inward Processing Regime (IPR) from the PRC and imports from other third countries into 
free  circulation,  based  on  data  of  the  importer  International  Furan  Chemicals  BV  ('IFC') 
verified  during  the  last  expiry  review  investigation  and  Eurostat.  As  Eurostat  does  not 
disclose the complete information for confidentiality reasons, Eurostat data were used only 
for  the  imports  from  other  third  countries  except  the  PRC  and  the  Dominican  Republic, 
since IFC is the sole importer of furfuraldehyde from these sources.  

(39)  Facts available were used for 2010 and the RIP due to the lack of cooperation from both the 
Union industry and the sole importer and the confidentiality of large amounts of data usually 
available  from  Eurostat.  In  the  absence  of  any  indications  to  the  contrary,  there  was  no 
reason to believe that there has been any marked shift in Union consumption since 2009 and 
it was considered that it remained at the same levels during 2010 and the RIP. 

(40)  On this basis, during the period considered, the Union consumption decreased by 17%, from 

45 738 tonnes in 2008 to 38 000 tonnes during the RIP.  

Table 1 – Union consumption 

Year 

Tonnes 

2008 

2009 

2010 

RIP 

45 738

38 175

38 000 

38 000

Index (2008=100) 

100

Y/Y trend 

83

-17

83 

0 

83

0

Source: verified questionnaire replies of the Union industry and IFC, Eurostat  

2. 

Imports from the PRC 

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2.1. 

Volume, market share and prices 

(41)  According to Chinese export statistics, Chinese imports were being made under IPR during 
the RIP. The Chinese IPR volume increased from 10 002 tonnes in 2008 to 13 975 tonnes in 
the RIP, i.e. by 40%. Over the period considered the Chinese market share for IPR increased 
from 22% to 37%, i.e. by 15 percentage points. 

(42)  The Chinese IPR price increased by 47% from EUR 1014 per MT in 2008 to EUR 1488 in 
the RIP. It is noted that during the RIP prices of Chinese imports increased rapidly, reaching 
a high point of over 1700 EUR/MT. 

Table 2 – Imports from the PRC 

Year 

Tonnes 

2008 

2009 

2010 

RIP 

10 002

5 159

8 375 

13 975

Index (2008=100) 

100

Y/Y trend 

Market share 

Price, EUR/tonne 

Index (2008=100) 

52

-48

84 

32 

140

56

22%

14%

22% 

37%

1 014

100

690

68

1 362 

1 488

134 

147

Source: Verified questionnaire response of IFC, Chinese export statistics  

3. 

Import volumes and prices from other third countries 

(43) 

It  should  be  noted  that,  as  in  the  original  investigation,  imports  from  the  Dominican 
Republic  were  entirely  shipments  from  a  parent  company  to  its  European  subsidiary  to 
produce  furfuryl  alcohol.  Thus,  the  prices  used  in  these  transactions  are  transfer  prices 
between  related  companies  which  may  not  reflect  real  market  prices.  Given  the  lack  of 
cooperation from the importer concerned and the confidentiality of data  in  Eurostat, it has 
been  assumed  that  imports  and  prices  from  the  Dominican  Republic  remained  constant 
during 2010 and the RIP.  

Table 3 - Imports into the Union from the Dominican Republic  

Year 

Tonnes 

2008 

2009 

2010 

RIP 

27 662

24 996

25000 

25000

Index (2008=100) 

100

Y/Y trend 

Market share 

Price, EUR/tonne 

Index (2008=100) 

90

-10

90 

0 

90

0

60%

65%

66% 

66%

982

100

582

59

582 

59 

582

59

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(44)  According  to  Eurostat,  import  volumes  of  furfuraldehyde  into  the  Union  from  countries 

other than the PRC, together with their average prices, developed as follows: 

Table 4 - Imports into the Union from other third countries  

Year 

Tonnes 

Index (2008=100) 

Y/Y trend 

Market share 

Price, EUR/tonne 

Index (2008=100) 

2008

2009

2010 

1 583

1 226

100

3%

997

100

77

-23

3%

632

63

RIP

162

10

2

1%

138 

9 

-69 

1% 

1 473 

1 685

148 

169

4. 

Export volumes and prices from the EU to other third countries  

(45)  During  the  period  considered  data  was  only  available  for  2008  and  2009.  No  reliable 
statistical data was available to assess the evolution of the dataset into 2010 and the RIP. In 
the  absence  of  cooperation  from  the  Union  industry  facts  available  were  used  and  the 
assumption  made  that  exports  from  the  EU  would  continue  at  the  same  volume  levels  as 
2009 with a price increase in line with that found on the EU market. 

Table 5 – Export volumes and prices of the Union Industry to other third countries  

Year 

2008 

2009 

2010 

RIP 

Quantities - Index (2008=100) 

100

Y/Y trend 

Prices - Index (2008=100) 

100

Y/Y trend 

155

55

77

-23

155 

0 

134 

57 

155

0

147

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5. 

Economic situation of the Union industry 

(46)  The economic situation of the Union industry, i.e. the two companies Lenzing and Tanin, is 
analysed  below  using  data  collected  during  the  expiry  review  plus  facts  available  for  the 
current review investigation period (RIP). 

5.1. 

Production  

(47)  The total production by the Union industry of the like product increased by 5% until 2009. 
In the absence of other data it was assumed that production remained stable in 2010 and the 
RIP. 

Table 6 - Union production 

Year  

2008 

2009 

2010 

RIP 

EN 

12 

   EN 

Index (2008=100) 

100

Y/Y trend 

105

5

105 

0 

105

0

Source: Verified questionnaire replies of the Union producers 

5.2. 

Production capacity and capacity utilisation 

(48)  The total production  capacity  of the Union industry  remained  the same  in 2008 and 2009. 
Given  the  lack  of  cooperation  from  the  Union  industry  it  was  assumed  that  capacity  and 
utilisation remained the same in 2010 and the RIP.  

Table 7 - Union capacity 

Year  

2008 

2009 

2010 

RIP 

Index (2008=100) 

Capacity utilisation  

100

92%

100

96%

100 

96% 

100

96%

Source: Verified questionnaire replies of the Union producers 

5.3. 

Level of stocks 

(49)  Given  the  lack  of  cooperation  of  the  Union  industry  it  was  assumed  that  stock  levels 

remained the same as they were at the end of 2009. 

Table 8 – Stocks 

Year 

2008 

2009 

2010 

RIP 

Index (2008=100) 

100

Y/Y trend 

56

-44

56 

0 

56

0

Source: Verified questionnaire replies of the Union producers 

5.4. 

Sales volume and market share 

(50)  The Union industry's sales volume to unrelated customers in the Union market increased by 
12% from 2008 to 2009. In the absence of data from the Union industry it was assumed that 
volume of sales did not increase in 2010 or the RIP. 

Table 9 – Sales volume and EU market share 

Year  

2008 

2009 

2010 

RIP 

Index (2008=100) 

100

112

112 

112

Market share ranged 

10-20%

14-24% 14-24% 

14-24%

Source: Verified questionnaire replies of the Union producers 

5.5. 

Average sales prices 

EN 

13 

   EN 

(51)  During the period considered the average sales prices charged by the Union industry on the 
Union  market  increased  substantially  by  36%.  This  was  caused  by  a  large  price  increase 
during 2010 and the RIP.  

Table 10 – Average sales price in the EU 

Year  

2008 

2009 

2010 

RIP 

Index (2008=100) 

100

Y/Y trend 

89

-11

108 

19 

136

28

Source:  Verified  questionnaire  replies  of  the  Union  producers  plus  facts  made  available  to  the 
Commission 

5.6. 

Average cost of production 

(52)  As no cost of production data was made available by the Union industry for 2010 and the 
RIP data from the previous expiry review was increased by 6% to take into account inflation 
during the period.  

Table 11 – Average cost of production 

Year  

2008 

2009 

2010 

RIP 

Index (2008=100) 

100

Y/Y trend 

100

0

102 

2 

106

4

Source: Verified questionnaire replies of the Union producers 

5.7. 

Profitability and cash flow 

(53)  Calculation  of  the  profits  made  by  the  Union  industry,  based  on  the  price  and  cost  data 
above, showed a significant increase during the period considered due to the price increases 
on  the  EU  market  combined  with  no  evidence  of  increase  in  production  costs  beyond 
inflation. Cash flow is considered, in the absence of any other data, to have followed a trend 
similar to profitability. 

Table 12 – Profitability and cash flow 

Year 

2008 

2009 

2010 

RIP 

Profitability Index (2008=100) 

100

Y/Y trend 

Cash Flow - Index (2008=100) 

100

Y/Y trend 

96

-4

34

+66

153 

57 

69 

36 

297

144

69

0

Source: Verified questionnaire replies of the Union producers 

5.8. 

Investments, return on investments and ability to raise capital 

EN 

14 

   EN 

(54) 

In the absence of data from the Union industry, given the increases in prices in 2010 and the 
RIP  it  has  been  assumed  that  there  was  a  return  to  the  level  of  investment  as  that  seen  in 
2007. Return on investment has been assumed to follow the same basic trend as profitability 
shown in Table 12. 

(55)  Table 13 – Investments and return on investments 

Year 

2008 

2009 

2010 

RIP 

Investments index (2008=100) 

100

Y/Y trend 

Return  on  investments  index 
(2008=100) 

100

3

-97

-4

163 

160 

100 

163

0

200

Y/Y trend 

-104

96 

100

Source: Verified questionnaire replies of the Union producers 

5.9. 

Employment and productivity 

(56)  Given  the  lack  of  information  from  the  Union  industry  for  2010  and  the  RIP  it  has  been 
considered  that  employment  and  productivity  remained  constant  during  the  period 
considered. 

Table 14 – Employment and productivity 

Year 

2008 

2009 

2010 

RIP 

Employment - Index  

Productivity 
(tonnes/employees) - Index 

100

100

100

100

100 

100 

100

100

Labour costs - Index 

100

100

100 

100

Source: Verified questionnaire replies of the Union producers 

5.10.  Magnitude of dumping margin  

(57)  Despite the lack of cooperation from the Chinese exporting producers, the volume and value 
of  imports  was  analysed  from  Eurostat  together  with  an  estimation  of  market  share.  The 
significant price increase in 2010 and 2011 has dramatically reduced the margin of dumping 
from the PRC since the expiry review investigation period. 

5.11.  Recovery from the effects of dumped imports 

(58)  As shown by the positive evolution of most of the indicators listed above, during the period 
considered  the  financial  situation  of  the  Union  industry  has  fully  recovered  from  the 
injurious  effect  of  the  significantly  dumped  imports  that  were  identified  by  previous 
investigations originating in the PRC. 

6. 

Conclusion on the economic situation of the Union industry  

EN 

15 

   EN 

(59)  The measures against the PRC have had a positive impact on the economic situation of the 
Union  industry,  since  most  of  the  injury  indicators  showed  a  positive  development: 
production,  sales  volume  and  sales  value  increased  between  2008  and  the  RIP.  However 
given  the  substantial  increase  in  prices  on  the  EU  market,  the  Union  industry  is  now 
achieving profits far in excess of the target profit, set at the original investigation as being 
5%, to ensure its development.  

(60)  Given  the  significant  increase  in  prices  on  the  Union  market  during  the  RIP,  with  no 
evidence  of  a  parallel  increase  in  costs,  it  is  concluded  that  the  Union  industry  has  not 
suffered material injury within the meaning of Article 3(5). 

7. 

Conclusion on the lasting nature of these changed circumstances 

(61)  Consideration  has  been  given  as  to  whether  the  increase  in  prices  on  the  EU  market  is  a 
lasting  change  in  circumstances  from  the  findings  of  the  previous  expiry  review 
investigation.  The  data  available  shows  prices  on  the  Union  market  recovering  strongly, 
matching the levels of 2008 and then overtaking these amounts whereas in the expiry review 
investigation  prices  were  falling.  Moreover,  unlike  in  the  expiry  review,  no  evidence  of 
undercutting  was  found.  In  the  expiry  review,  profitability  was  on  a  downward  trend  but 
data after the end of that investigation shows profitability recovering strongly, matching the 
levels of 2008 and then exceeding them.  

(62) 

It was analysed whether, however, the change in prices since the end of the expiry review 
investigation  period  could  be  based  on  a  particularly  poor  harvest  season  in  the  PRC,  as 
furfuraldehyde is produced there from agricultural waste. However the price has not fallen 
significantly since the harvest season at the end of 2010 and therefore this was discounted. It 
appeared  that  there  had  been  an  increase  in  the  prices  of  imports  originating  in  the  PRC 
caused  by  the  long-term  growth  in  the  domestic  demand  for  furfuraldehyde  and  the  rising 
raw  material  costs  in  the  country  concerned.  Due  to  the  lack  of  cooperation  from  the 
Chinese  exporting  producers,  this  could  not  be  verified,  but  the  Commission  received  no 
evidence that this was not the case. 

(63)  Given  the  evidence  available  to  the  Commission  referred  to  above,  and  the  lack  of 
information  showing  that  the  price  increases  referred  to  have  been  temporary,  it  has  been 
concluded that this change is of a lasting nature.  

F. 

TERMINATION OF THE ANTI-DUMPING PROCEEDING AND REPEAL OF THE 

ANTIDUMPING MEASURES IN FORCE 

(64) 

In  light  of  the  above,  it  is  considered  that  the  present  anti-dumping  review  should  be 
terminated and the anti-dumping measures in force be repealed. 

(65)  All parties were informed of the essential facts and considerations on the basis of which it 
was  intended  to  recommend  that  the  existing  measures  be  terminated.  They  were  also 
granted a period within which they could make representations subsequent to this disclosure. 
No comments were received. 

(66) 

It follows from the above that the present anti-dumping review should be terminated and the 
anti-dumping  measures  imposed  by  Regulation  (EU)  No  453/2011  on  imports  of 
furfuraldehyde originating in the PRC should be terminated and the existing duty repealed, 

EN 

16 

   EN 

HAS ADOPTED THIS REGULATION: 

Article 1 

The interim review of the anti-dumping duties applicable to imports of 2-furaldehyde (also known 
as  furfuraldehyde  or  furfural)  currently  falling  within  CN  code  2932  12  00  originating  in  the 
People’s Republic of China is hereby terminated.  

Regulation (EU) No 453/2011 is hereby repealed. 

Article 2 

Article 3 

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

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

Done at Brussels,  

For the Council 
The President 

EN 

17 

   EN