Brussels, 22/09/2000 (Agence Europe) - The European Union Council has decided to re-introduce definitive anti-dumping duties on imports of fluorspar originating in China, upon the expiry of measures in force since 1994. The review procedure provided evidence to justify the concerns of European producers that they would be confronted with dumping practices very harmful to their industry should the duties be allowed to expire.
The review procedure, opened in March 1999, demonstrated that the Community industry, for which Eurométaux acted as spokesman, has lost market shares (which have fallen from 42.1% to 38.1%) to Chinese imports, in spite of the existence of anti-dumping measures. These measures have nonetheless allowed it to raise its prices and thus limit its losses, in particular between 1996 and 1998. But their duration of validity is not long enough to enable the industry to get back on its feet completely, especially in terms of profitability, and its situation is still precarious. At the same time, European imports of Chinese fluorspar have risen continually, from 62,935 tonnes in 1995 to 155,200 tonnes in 1998, or a 157% increase, while their share of the Community market has also gained ground, rising from 21.3 to 31.3%. Prices in the Community industry, meanwhile, have been under pressure from the Chinese imports.
The conclusion drawn by the Commission, namely that dumping and injury are likely to continue should the existing measures be allowed to expire, is also based on: i) the considerable increase in the production capacity of Chinese traders, the large stocks they have accumulated in recent years and the low level of capacity utilisation; ii) the strong influence of earlier measures and the Chinese export license system on the practices of the incriminated traders and the evolution of their prices; this licensing system is nonetheless temporary and cannot be considered a guarantee for maintenance of the prices of Chinese exports; iii) the low prices likely to be practised by these undertakings in the absence of anti-dumping measures (given the amount of the license tax to be paid) and the high likelihood of continuation of the present price under-cutting; iv) the fact that Community users have procured Chinese fluorspar at a price below the minimum import price. It is therefore necessary to take definitive anti-dumping measures against Chinese imports of this substance, whether in the form of filtration cake or powder, the uses of which are myriad (production of fluorohydric acid and fluorocarbons used in aerosols, refrigerating agents and expanded plastic, as well as aluminium fluoride earmarked for the aluminium sector and fluorine-based chemicals such as solvents). The duties are being maintained in their existing form, i.e. equal to the difference between a minimum price of EUR 113.50 per tonne (dry net weight) and the non-landed net free-at-Community-frontier price.