CELEX: 51987PC0396
Language: en
Date: 1987-08-10
Title: Proposal for a COUNCIL REGULATION (EEC) repealing a definitive anti-dumping duty on styrene monomer originating in the United States of America and terminating the proceeding (presented by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (87) 396
Vol. 1987/0214
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 ---pagebreak---  COMMISSION OF THE EUROPEAN COMMUNITIES
                                                          COM(87 ) 396 final
                                                          Brussels , 10 August 1987
                                    Proposal for a
                               COUNCIL REGULATION ( EEC )
 repealing a definitive anti-dumping duty on styrene monomer originating
      in the United States of America and terminating the proceeding
                    (presented
                         - (presented by the^
                                           the Commission )
                       ■            r        ^    I
                     - **i            V        ■"
                    ^ ,          \
                      \ C'>, X'v
C0MC87 ) 396 final
 ---pagebreak---                                                                       Co n ,    Q
                                                                        ORIGINAL
                         EXPLANATORY MEMORANDUM
                                      1
1. By Regulation ( EEC ) No 1570 / 81   of 11 June 1981 , the Council imposed a
   definitive anti-dumping duty on styrene monomer originating in the USA .
                                                    2
2. In December 1985 , the Commission gave notice      of the impending expiry
   of this anti-dumping measure pursuant to Article 15 of Council Regulation
   ( EEC ) No 2176/ 84 3 .
3. Subséquent ly, the Commission received a review request from the Conseil
   Européen des Fédération de l' Industrie Chimique ( CEFIC ).
   _   .   .  .   . .            .                          4   „ . ,
4. In September 1986 the Commission published a notice        of the reopening
   of the anti-dumping proceeding concerning imports of the product in
   question originating in the USA and commenced an investigation .
5. The preliminary examination of the facts shows the existing of dumping ,
   the weighted average dumping margins varying between 1,9 % and 5,9 % .
6. With regard to injury , imports into the Community from the USA decreased
   from 40.000 t in 1982 to 27.000 t in 1985 and stood at 17.500 t in the
   first nine months of 1986 . Their market share was less than 1,5 %
   during the investigation period . The Commission found no evidence of price
   undercutting or price depression caused by the dumped product . Community
   production of the product concerned increased by 28,8 % between 1982 and
   1986 and capacity utilisation reached its technical maximum in 1986 .
   Styrene prices in the Community have more than doubled since summer of 1986
7. The significant improvement of the situation of the Community industry
   with regard to sales , production , capacity utilisation , prices and profits ,
   together with the decrease of the market share of the imported product , led
   the Commission to determine that the dumped imports of styrene monomer from
   the USA did not cause , nor are they threatening to cause , material injury
   to the Community industry concerned .
 ---pagebreak---                               - 2 -
8 . On the basis of these facts , the Commission considers that the investigation
    may be terminated without the imposition of measures and submits therefore
    to the Council a proposal for a Council Regulation repealing the definitive
    anti-dumping duty on styrene monomer originating in the USA and terminating
    the investigation .
    1
      OJ No L 154 , 13.06.1981 , p . 10 .
    2
      0J No C 338 , 31.12.1985 , p . 6 .
    3
      OJ No L 201 , 30.07.1984 , p .  1.
    4
      0J No C 231 , 12.09.1986 , p .  5.
 ---pagebreak---                                                                                 ORIGINAL
                                       Proposal for a
                              COUNCIL REGULATION ( EEC )
   repealing a definitive anti-dumping duty on styrene monomer originating
       in the United States of America and terminating the             proceeding
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard         to   the     Treaty    establishing    the   European   Economic
Communi ty ,
Having regard to Council Regulation ( EEC ) No 2176 /84 of 23 July 1984 on
protection against dumped or subsidized imports from countries not
                                                          1
members of the European Economic Community , as amended by Regulation
 ( EEC ) No 1761 /87^, and in particular Article 14 thereof ;
Having      regard' to    the     proposal    submitted   by   the  Commission    after
consultations       within    the      Advisory  Committee    provided   for  in   that
Regulation ,
Whereas :
                                          A. Procedure
1 . In June 1981 the Council , by Regulation (EEC ) No 1570/81 3, imposed a
       definitive anti-dumping duty on styrene monomer originating in the USA .
                                                               4
       In December 1985 the Commission gave notice               of the impending
      expiry of this anti-dumping measure pursuant to Article 15 of
       Regulation ( EEC ) No 2176 /84 .
  OJ  No L   201 , 30.7.1984 ,   p.   1 .
  OJ No L    167 , 26.6.1987 ,   P-   9.
 'OJ  No  L  154 , 13.6.1981 ,   P-   10 .
  OJ  No  C  338 , 31.12.1985 /■   P.   6.
 ---pagebreak---                                      - 2 -
2.    The Commission then received a      review  request  form the  Consei L
     Europfeen    des  Federations    de    L'Industrie   Chimique   CCEFIC )
     representing substantially all production of the product concerned
     in the former Community of Ten Member States .          In view of the
     enlargement of the Communities the Spanish producer associated
     himself with the request .
     In September 1986 the Commission , having decided that there was
     sufficient evidence to warrant a review, published ^ a notice of
     the re-opening of the anti-dumping proceeding concerning imports of
     styrene monomer falling within subheading 29.01 D II of the Common
     Customs Tariff , corresponding to NIMEXE code 29.01-71 , originating
     in the USA-;
3.   The Commission officially so advised the exporters and importers
     known to be concerned , the representatives of the exporting country
     and the Community producers and gave the parties directly concerned      I
     the opportunity to make known their views in writing and to request
     a hearing .
     Most of the US producers / exporters and their main affiliates in the
     Community made their views known in writing . Some of them requested
     hearings which were granted .
4.   No submissions    were made on behalf of         independent  Community   \
     purchasers or processors of styrene monomer .
   5 0J No C 231 , 12.9.1986, p. 5 .
 ---pagebreak--- 5. The Commission sought and verified all information it deemed to be
   necessary for the purposes of a preliminary determination and
   carried out investigations at the premises of the following EEC
   producers :
   France :          ATOCHEM ( Paris )
   Germany :         BASF Aktiengesellschaft (Ludwigshafen)
   Italy :           Montedipe ( Milano)
   United Kingdom :  BP Chemicals Ltd ( London )
                     Shell International Chemical Company Ltd ( London )
6. The investigation    covered    the   period   1    September    1985  to
   31 August 1986 .
                           B.   Normal Value
7. Normal value was   provisionally    determined   on   the  basis   of the
   domestic prices of the   producers having exported to the Community
   who provided sufficient evidence and whose prices were considered to
   be representative of    the domestic market concerned .            It was
   calculated on the basis of monthly weighted averages .
                           C.   Export Prices
8. For those exports which were made directly to an independent
   importer in the Community the Commission used the prices actually
   paid or payable for the product sold for export to the Community .
 ---pagebreak---                                        - 4 -
 9.  Where exports were made to subsidiary companies in the Community
     which resold the product in question on the free market in the
      Community export prices were constructed on the basis of the prices
     at which the imported product was first resold to an independent
     buyer , suitable allowance being made to take account of all costs
      incurred between importation and resale including customs duty and a profit
     margin of 4% considered reasonable in the light of the profit
     margins of independent importers of the product in question .
10 . Where exports were made to subsidiary companies in the Community
     which used the product only for their captive requirements producing
     various other products derived from styrene monomer and which did
     not resell     styrene     to independent customers in the Community ,
     the   Commission  disregarded    these  exports   because of the problems
     involved in establishing a reliable export price for this product . This approach
was also considered appropriate because certain US exports had been
     exempted from the application of the definitive anti-dumping duty
     for the same reasons .
                                 D.  Comparison
11 . In   comparing   normal   value    with  each   export   transaction   the
     Commission took account , where appropriate , of differences affecting
     price comparability , in particular of differences in conditions and
     terms of sale such as credit terms, commissions , transport , storage ,
     handling and customs clearance .
     All comparisons were made at ex-works level .
 ---pagebreak---                                           - 5 -
                                      E.    Margins
12 . The preliminary examination of the facts shows the existence of
     dumping , the margins of dumping being equal to the amount by which
     the normal value as established exceeds the export price to the
     Community .   Depending on the exporter concerned the weighted average
     dumping margins vary between 1,9% and 5,9% .
                         F.  Injury and threat of injury
13 . With regard to injury caused by the dumped imports , the evidence
     available to the Commission shows that imports into the Community
     from the 'USA of styrene monomer which have been sold in the free
     market to independent buyers in the Community have decreased from
     40  000   tonnes   in  1982    to   27   000  tonnes   in   1985  and  stood  at
     17 500 tonnes in the first nine months of 1986 .             Their share of the
     free market felt in the same period from 6,4% to 3,3% and remained
     practically stable at this level in the first nine months of 1986 .
     The Commission further took into account that during the
     investigation period certain quantities of the imported product had
     been purchased by Community producers themselves and / or exported by
     US producers exempt from anti-dumping duties . On the basis of the
     evidence   available   it   is   estimated    that  the   market  share  of  the
     dumped product which effectively entered the free market in the
     Community was less than 1,5% during the investigation period .
14 . The Commission also found no evidence indicating that the prices at
     which the dumped product was resold in the free Community market
     undercut the prices of Community producers or have caused price
     depression in the Community .           Although prices for styrene monomer
     had decreased considerably              during the first half of             the
     investigation period this could in no way be attributed to the
     imports under consideration but was due to cost savings
     from    significantly     decreasing      raw  material      prices .  These
                      ♦
 ---pagebreak---      were partly , passed on to consumers ,            leaving , nevertheless ,
     most of the Community producers with           increasing    profit
     margins . The situation became even more favourable in the second
     half of 1986 when styrene prices started to climb strongly in the
     Community and world wide . The outlook for the current year is for
     further price increases and strongly improving profit margins .
15 . Total Community production of styrene monomer climbed from
     2,25 million tonnes in 1982 to 2,90 million tonnes in 1986,
     corresponding to an increase of 28,8% . The growth of production was
     in line with the increase in demand both in the Community and in the
     principal 'world markets .     Styrene plant capacity has not been
     expanded in the Community since 1982 and utilisation reached its
     technical maximum in 1986 . Coinciding plant shut downs and buoyant
     demand even led to distinct supply shortages in the Community in the
     second half of 1986 .
16 . The outlook for the styrene market in the Community for the current
     year and beyond continues to be very favourable for Community
     producers .   In view of sustained demand and capacity limitations
     combined with the normal scheduled plant shut downs for maintenance ,
     in   the    Community   as well     as   in the USA ,   it   appears
     likely that , as in 1986, supply shortages will persist throughout
     the current year and beyond , and that styrene prices will remain at
     high levels as will the profitability of Community producers .
17 . The very favourable market situation for styrene monomer in the
     Community and other parts of the world which can be expected to
     persist in the foreseeable future , the significant improvement of
     the situation of the Community industry with regard to sales ,
     production , capacity utilisation , prices and profits , together with
     the decrease of the market share of the imported product , led the
     Commission to determine that the dumped imports of styrene monomer
     originating in the USA taken in isolation did not cause , nor are
     they threatening to cause , material injury to the Community industry
     concerned .  It therefore was decided that the investigation may be
     terminated without the imposition of measures .
 ---pagebreak--- 18 . No objection to this course was raised in the Advisory Committee .
HAS ADOPTED THIS REGULATION :
                                   Article 1
Regulation ( EEC ) No 1570 /81 is hereby repealed .
                                   Article 2
The anti-dumping proceeding concerning imports of styrene monomer falling
within subheading 29.01 D II of the Common Customs Tariff corresponding to
NIMEXE code 29.01-71 and originating in the United States of America is hereby
terminated .
                                   Article 3
This Regulation shall enter into force on the day of its publication in
the Official Journal of the European Communities .
This Regulation shall be binding in its entirety and directly applicable
in all Member States .
Done at Brussels ,
                                                    For the Council ,
                                                    The President