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24.3.2011 Official
Journal
of
the
European
Union
L
78/1
II
(Non-legislative acts)
REGULATIONS
COUNCIL IMPLEMENTING REGULATION (EU) No 287/2011
of 21 March 2011
imposing a definitive anti-dumping duty on imports of tungsten carbide, tungsten carbide simply
mixed with metallic powder and fused tungsten carbide originating in the People’s Republic of
China following an expiry review pursuant to Article 11(2) of Regulation (EC) No 1225/2009
THE COUNCIL OF THE EUROPEAN UNION,
(3) By
Regulation
(EC)
No
610/95
( 5 ), the Council amended
Regulation (EEC) No 2737/90 and imposed a definitive
duty of 33 % on imports of tungsten carbide and fused
tungsten carbide. Following a review which had been
Having regard to the Treaty on the Functioning of the European
initiated pursuant to Article 11(2) of the basic Regulation
Union,
(‘the previous review investigation’), these measures were
extended for another five-year period by Council Regu
lation (EC) No 771/98 ( 6 ).
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 Community ( 1 )
(‘the basic Regulation’), and in particular Articles 9(4) and 11(2),
(4) By
Regulation
(EC)
No
2268/2004
( 7 ), following an
5 and 6 thereof,
expiry review, the Council imposed an anti-dumping
duty of 33 % on imports of tungsten carbide and fused
tungsten carbide originating in the People’s Republic of
Having regard to the proposal submitted by the European
China (‘PRC’).
Commission (‘Commission’) after consulting the Advisory
Committee,
(5) By
Regulation
(EC)
No
1275/2005
( 8 ), the Council
Whereas:
amended the definition of the product scope to also
cover tungsten carbide simply mixed with metallic
powder.
A. PROCEDURE
1. Measures in force
2. Request for a review
(1) By
Regulation
(EEC)
No
2737/90
( 2 ), the Council
imposed a definitive anti-dumping duty of 33 % on
(6) Following the publication of a notice of impending
imports of tungsten carbide and fused tungsten carbide
expiry ( 9 ) of the definitive anti-dumping measures in
originating in the People’s Republic of China (‘PRC’). By
force, the Commission received on 30 September 2009
Decision 90/480/EEC
(
a request for the initiation of an expiry review of these

3 ) the Commission accepted
undertakings given by two major exporters concerning
measures pursuant to Article 11(2) of the basic Regu
the product subject to measures.
lation. The request was lodged by the European
Association of Metals (Eurometaux) (‘the applicants’) on
behalf of Union producers representing a major
proportion, in this case more than 85 %, of the total
(2)
Following the withdrawal of the undertakings by the two
Union production of tungsten carbide, tungsten carbide
Chinese exporters concerned, the Commission imposed
simply mixed with metallic powder and fused tungsten
by Regulation (EC) No 2286/94 ( 4 ) a provisional anti-
carbide.
dumping duty on imports of the product concerned.
( 5 ) OJ L 64, 22.3.1995, p. 1.
( 1 ) OJ L 343, 22.12.2009, p. 51.
( 6 ) OJ L 111, 9.4.1998, p. 1.
( 2 ) OJ L 264, 27.9.1990, p. 7.
( 7 ) OJ L 395, 31.12.2004, p. 56.
( 3 ) OJ L 264, 27.9.1990, p. 59.
( 8 ) OJ L 202, 3.8.2005, p. 1.
( 4 ) OJ L 248, 23.9.1994, p. 8.
( 9 ) OJ C 115, 20.5.2009, p. 18.

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L 78/2
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Official Journal of the European Union
24.3.2011
(7)
The request was based on the grounds that the expiry of
(14) The
Commission
sought
and
verified
all
the
information
the measures would be likely to result in a continuation
it deemed necessary for a determination of the likelihood
or recurrence of dumping and recurrence of injury to the
of continuation or recurrence of dumping and resulting
Union industry.
injury and of the Union interest. Verification visits were
carried out at the premises of the following companies:
3. Initiation
(a) Union producers
(8) Having
determined,
after
consulting
the
Advisory
— Wolfram Bergbau und Hütten-GmbH Nfg.KG., St
Committee, that sufficient evidence existed for the
Peter, Austria
initiation of an expiry review, the Commission
announced on 30 December 2009, by a notice
— H. C. Starck GmbH & Co. KG, Goslar, Germany
published in the Official Journal of the European Union ( 1 )
(‘the notice of initiation’), the initiation of an expiry
review pursuant to Article 11(2) of the basic Regulation.
— Eurotungstène poudres S.A., Grenoble, France
— Global Tungsten & Powders spol. s.r.o, Bruntál,
Czech Republic
4. Investigation
4.1. Investigation period
— Treibacher Industrie AG, Althofen, Austria
(9) The
investigation
of
continuation
or
recurrence
of
(b) Analogue Country
dumping covered the period from 1 January 2009 to
31 December 2009 (‘the review investigation period’ or
— Global Tungsten & Powders Corp., USA
‘RIP’). The examination of the trends relevant for the
assessment of the likelihood of a recurrence of injury
(c) User
covered the period from 1 January 2006 to the end of
the RIP (‘the period considered’).
— Sandvik Hard Materials, Epinouze, France
4.2. Parties concerned by the investigation
(10) The
Commission
officially
advised
the
applicant,
other
B. PRODUCT CONCERNED AND LIKE PRODUCT
known Union producers, exporting producers,
importers and users known to be concerned, producers
(15) The product concerned by the present review is tungsten
in the analogue country and the representatives of the
carbide, tungsten carbide simply mixed with metallic
PRC of the initiation of the expiry review. Interested
powder and fused tungsten carbide originating in the
parties were given the opportunity to make their views
PRC and currently falling within CN codes 2849 90 30
known in writing and to request a hearing within the
and ex 3824 30 00.
time limit set out in the notice of initiation.
(11) All
interested
parties,
who
so
requested
and
showed
that
(16) Tungsten
carbide,
tungsten
carbide
simply
mixed
with
there were particular reasons why they should be heard,
metallic powder and fused tungsten carbide are
were granted a hearing.
compounds of carbon and tungsten produced by heat
treatment (carburisation in the first case, fusion in the
third). These products are intermediate products, used as
input materials in the manufacture of hard metal
(12) The
Commission
sent
questionnaires
to
all
parties
known
components such as cemented carbide cutting tools
to be concerned and to those who made themselves
and high-wear components, in abrasion-resistant
known within the deadlines set in the Notice of
coatings, in bits for oil drilling and mining tools as
initiation. Replies were received from seven Union
well as in dies and tips for the drawing and forging of
producers, one exporting producer in the PRC, one
metals.
exporting producer in the analogue country and three
users.
(17) The
present
investigation
confirmed
that
the
product
(13) None
of
the
importers
replied
to
the
sampling
exercise
concerned manufactured and sold by the exporting
nor supplied the Commission with any information or
producer to the Union is identical in terms of physical
made themselves known in the course of the investi
and chemical characteristics and uses to the product
gation. As only one exporting producer from the PRC
produced by the Union producers and sold on the
came forward with the requested information, it was not
Union market or to the one produced and sold in the
necessary to select a sample.
analogue country and are, therefore, considered to be like
products within the meaning of Article 1(4) of the basic
( 1 ) OJ C 322, 30.12.2009, p. 23.
Regulation.

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24.3.2011 Official
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Union
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C. LIKELIHOOD OF A CONTINUATION OR A
considered that the USA was representative as a
RECURRENCE OF DUMPING
reference market, especially in view of the openness
and competitiveness of the US domestic market. In
1. Preliminary remarks
addition, one producer from the USA agreed to
cooperate within the present review.
(18) In
accordance
with
Article
11(2)
of
the
basic
Regulation,
it was examined whether dumping was currently taking
place and, if so, whether or not the expiry of the existing
measures would be likely to lead to a continuation or
(24) Therefore,
the
USA
has
been
used
as
an
analogue
market
recurrence of dumping. It is recalled that in the context
economy country for the purpose of this review.
of investigation under this Article, market economy
treatment (‘MET’) is not reconsidered.
2.2. Normal value
(19) As
explained above, it was not necessary to apply
(25) Pursuant
to
Article
2(7)
of
the
basic
Regulation,
normal
sampling in respect of exporting producers in the PRC.
value was established on the basis of the verified
information received from the cooperating US producer
in the analogue country, i.e. on the basis of prices paid or
payable on the domestic market in the USA, for product
(20) At
the
sampling
stage,
the
sole
cooperating
Chinese
types which were found to be sold in the ordinary course
exporting producer appeared to represent less that 5 %
of trade.
of total Chinese exports to the Union. The Chinese
authorities and the other interested parties were
notified of the possibility that Article 18 of the basic
Regulation might be applied due to a low level of coop
(26) As
a
result,
normal
value
was
established
as
the
weighted
eration by the exporting producers. The Commission did
average domestic sales price to unrelated customers by
not receive any answer to this communication.
the cooperating producer in the USA.
(21) However, further in the investigation, in the reply to the
(27) It
was
first
established
whether
the
total
domestic
sales
of
questionnaire, the cooperating exporting producer
the like product to independent customers of the US
corrected the error in reporting its export sales to the
cooperating producer were representative in accordance
Union and revised upwards its export volume to the
with Article 2(2) of the basic Regulation, i.e. whether
Union. In parallel, the volumes of the product
they accounted for 5 % or more of the total sales
concerned exported to the Union from the PRC were
volume of the product concerned exported to the
further analysed based on Eurostat figures. As a result,
Union. The domestic sales of the cooperating US
and after the verification of the questionnaire reply, it
producer were found to be sufficiently representative
was established that the export volume of the coop
during the review investigation period.
erating exporting producer was very high ( 1 ). On the
basis of these findings, it was concluded that cooperation
was high.
(28) It
was
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
2. Dumping of imports during the RIP
basic Regulation. This was done by establishing for the
like product sold on the US market the proportion of
2.1. Analogue country
profitable domestic sales to independent customers
(22) Since
no
exporting
producer
from
PRC
was
granted
MET
during the RIP.
in the previous investigations, the normal value for China
was established in accordance with the provisions of
Article 2(7)(a) of the basic Regulation.
(29) Since the volume of profitable sales of the like product
represented less than 80 % of the total sales volume of
the like product, normal value was based on the actual
(23) In
the
notice
of
initiation,
it
was
envisaged
to
use
the
domestic price, calculated as a weighted average of
USA as an appropriate analogue country for the purpose
profitable sales.
of establishing normal value for the PRC. Interested
parties were invited to comment on the appropriateness
of this choice. No comments or objections were received
2.3. Export price
from any parties in that respect. The USA was used also
as an analogue country in the original investigation and
(30) As explained above, in view of the fact that the coop
no new or changed circumstances which would justify a
erating exporting producer represented more than 90 %
change appeared to exist nor were any such circum
of total Chinese imports to the Union, the export price
stances communicated to the Commission. It was
was examined on the basis of data provided by that
exporting producer, i.e. the duly adjusted price actually
( 1 ) The exact percentage cannot be disclosed due to confidentiality
paid or payable for the product concerned when sold for
reasons.
export to the Union.

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Official Journal of the European Union
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2.4. Comparison
(35) In
addition
the
cooperating
exporting
producer
reported
a substantial increase in capacity during the period
(31) The
weighted
average
normal
value
was
compared
with
considered.
the weighted average export price for each type of
product concerned, on an ex-works basis, at the same
level of trade and the same level of taxation. In
accordance with Article 2(10) of the basic Regulation,
(36) On the basis of the information collected during the
and for the purpose of ensuring a fair comparison,
investigation, the total Chinese production capacity
differences in factors which were claimed and demon
exceeded considerably the actual Chinese production
strated to affect price and price comparability were
(by at least more than 20 000 tonnes in 2008 and in
taken into account. Adjustments were made for ocean
the RIP).
and domestic freight, insurance, bank charges and
packaging costs. Further, a 5 % adjustment on the
export price for the export tax was made and the
adjustment for Value Added Tax (VAT) on the normal
(37) In the RIP the PRC had a spare capacity amounting to a
value.
six fold of the Union consumption (25 000 tonnes as
related to 3 800 tonnes of Union consumption).
2.5. Dumping margin
(38) In
view
of
the
above,
it
is
clear
that
a
large
part
of
the
spare capacity available in the PRC could be used to
(32) In
accordance
with
Article
2(11)
of
the
basic
Regulation,
increase exports to the Union in the absence of anti-
the dumping margin was established per product type on
dumping measures.
the basis of a comparison of the weighted average

normal value with the weighted average export price at
the same level of trade. This comparison showed the
existence of dumping during the RIP amounting to
(39) Moreover,
information
submitted
during
the
investigation
more than 80 %, hence at a significantly higher level
indicated important distortions in the raw materials
than in the last review investigation (31 %). The precise
market used to manufacture the product concerned.
dumping margin cannot be disclosed due to confiden
Firstly, raw materials are subject to quotas granted by
tiality reasons. The calculations have been based on data
the Chinese authorities. Secondly, the Chinese authorities
provided by one exporting producer in the PRC and one
limit the access to raw materials through the imposition
producer in the analogue country. Disclosure of the
of export taxes and VAT rebate policies, which as
dumping margin would allow both the cooperating
indicated in recital 31 also applied to the product
exporting producer in the PRC and the producer in the
concerned. These factors constitute additional elements
analogue country to deduce respectively the other’s
pointing to the likelihood of continuation of dumping
normal value and export price, which would amount
in the present case.
to a clear breach of both parties right to confidentiality.
3.3. Attractiveness of the Union market and export prices to
3. Development of imports should measures be
third countries
repealed
(40) Price information provided by the cooperating exporter,
3.1. Preliminary remark
which cannot be disclosed due to confidentiality reasons,

shows that the Union constitutes indeed an interesting
(33) The
data
included
in
this
section
were
obtained
through
market for the Chinese exporting producers. Throughout
the analysis of the data provided by the cooperating
the period considered the prices achieved on other third-
exporting producer, by Eurostat and by the review
country markets were below (except in 2007) those
request.
charged to the Union (roughly between 10 and 20 %
lower in different years throughout the period
considered).
3.2. Spare capacity of the Chinese exporting producers
(41) On
these
grounds,
it
can
be
concluded
that
in
terms
of
(34) Data
on
spare
capacity
provided
by
the
cooperating
prices achievable, the EU market is definitely an attractive
Chinese exporting producer were presented with a
alternative for the Chinese exporters.
20 % increase or decrease to respect confidentiality. The
production capacity in the PRC amounted to around
21 000 tonnes in 2006 and 2007 and increased
substantially to around 35 000 tonnes in 2008 and the
(42) On
that
basis,
Chinese
exporting
producers
have
an
RIP, an increase of more than 80 % over the period
incentive to direct their exports to the Union market,
considered. These figures can be considered as conser
should measures be repealed. The high prevailing prices
vative, as the review request reported a production
in the Union market would allow the Chinese exporting
capacity in the vicinity of 50 000 tonnes.
producers to achieve better profit margins.

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3.4. Circumvention of measures
considered confidential as they provide a level of detail
which allows for identification of the parties. For this
(43) In
2005
the
measures
have
been
extended
to
an
addi
reason some information was presented in ranges.
tional CN code as it was found that Chinese exporters
were circumventing the measures by adding small
quantities of another metallic powder (mostly cobalt) to
(49) Union industry data were obtained from the ques
tungsten carbide powder ( 1 ). This confirmed circum
tionnaire responses of the seven Union producers.
vention practice is yet another element pointing to the
conclusion of likelihood of continuation of dumping. It
constitutes clear evidence that the European market
3. Consumption in the Union market
continues to be attractive for the Chinese exporting
(50) Union
consumption
was
established
on
the
basis
of
the
producers who would likely direct higher volumes of
sales volumes of the Union industry on the Union
tungsten carbide into the EU in the absence of anti-
market, and import data from Eurostat.
dumping measures.
(51) Between 2006 and the RIP, Union consumption
decreased by 62 %, with the main decrease occurring
3.5. Conclusion of the likelihood of continuation of dumping
between 2008 and the RIP. In the RIP, consumption
decreased by 63 % compared to 2008.
(44) The foregoing analysis demonstrates that Chinese
imports continued to enter the Union market at
dumped prices with very high dumping margins. Given
Table 1
most notably the analysis of price levels on the EU and
other third-country markets as well as the capacities
Consumption
available in the PRC, it can be concluded there is a
likelihood of continuation of dumping should measures
2006 2007 2008 RIP
be removed.
Volume (tonnes)
+ Total
imports 1
766 1
885 2
303 755
D. SITUATION ON THE UNION MARKET
+ EU production 8 281 8
334 7
981 3
024
1. Definition of the Union industry
sold on the EU
market
(45) Within the Union, the like product is manufactured by
seven companies or groups of companies.
= Consumption 10
047 10
218 10
284 3
779

year-on-year increase 2
% 1
% –
63
%
(46) They
are therefore deemed to constitute the Union
industry within the meaning of Article 4(1) and
4. Volume, market share and prices of dumped
Article 5(4) of the basic Regulation and will hereinafter
imports from the People’s Republic of China
be referred to as the ‘Union industry’.
(52) The volumes, market shares and average prices of
dumped imports from the PRC developed as set out
below. The following quantity and price trends are
2. Preliminary remark
based on Eurostat data.
(47) Data
relating
to
imports
of
the
product
concerned
into
the Union originating in the PRC had to be indexed in
Table 2
order to preserve confidentiality pursuant to Article 19 of
the basic Regulation.
Imports from PRC
2006 2007 2008 RIP
(48) Regarding import volumes under TARIC code
Volume of imports More
More
More
More
3824 30 00 10, due to the inclusion of products other
from the country than
than
than
than 60
concerned (tonnes)
700
700
400
than the product concerned in the import data available
at CN code level from Eurostat (CN code 3824 30 00),
Index (2006 = 100) 100 104 60 11
the following analysis has been made on the basis of
import data at TARIC code level, supplemented by
Market share of 7,1 % 7,3
% 4,2
% 2,1
%
information from data collected in accordance with
imports from the
Article 14(6) of the basic Regulation. TARIC data are
country concerned
Price of imports from 25 622 21
883 22
434 22
110
( 1 ) Council Regulation (EC) No 1275/2005 of 26 July 2005 amending
the country concerned
Regulation (EC) No 2268/2004 imposing a definitive anti-dumping
(EUR/tonne)
duty on imports of tungsten carbide and fused tungsten carbide
originating in the People’s Republic of China (OJ L 202, 3.8.2005,
Index (2006 = 100) 100 85 88 86
p. 1).

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(53) The volume of dumped imports of the product
trend also observed with regard to the Union industry
concerned originating in the PRC has decreased by
prices.
89 % over the period considered and reached a level of
around 80 tonnes during the RIP. Their market share
also dropped from 7,1 % in 2006 to 2,1 % in the RIP.
(56) The
comparison
also
showed
that
imports
from
the
PRC
were undercutting the prices of the Union industry by
(54) A
possible
explanation
for
this
decrease
is
a
substantial
more than 10 %, after deduction of the anti-dumping
increase of PRC’s domestic consumption during the
duty in place. These results are the same as in the last
period considered. In addition, through a system of
review investigation ( 1 ).
export quotas and export tariffs Chinese authorities
appear to pursue a policy of conserving PRC’s tungsten
resources.
5. Imports from other countries
(57) The
volume
of
imports
from
other
countries
during
the
(55) Prices
of
Chinese
imports
decreased
by
14
%
during
the
period considered are shown in the table below. The
period considered. This evolution reflects the general
quantity and price trends are based on Eurostat data.
Table 3
Imports from other countries
2006 2007 2008 RIP
Imports from other counties
1 050 1
138 1
873 675
(tonnes)
Index (2006 = 100) 100 108 178 64
Market share of imports from other
10,5 % 11,1
% 18,2
% 17,9
%
countries
Average price (EUR/tonne) 27
309,1 26
626,0 21
607,5 24
867,4
Index (2006 = 100) 100 97 79 91
US Market share 4,2
% 3,9
% 3,9
% 3,6
%
Average price (EUR/tonne) 32
948,1 32
356,0 29
353,3 32
054,4
South Korea Market share 2,2
% 2,4
% 2,6
% 4,4
%
Average price (EUR/tonne) 33
733,8 29
969,5 25
789,0 24
503,7
(58) The
imports
from
third
countries
decreased
by
36
%
over
the
period
considered.
They
followed
a
general market trend triggered by the shrinking consumption (a drop by 62 %), but not at the same
pace. Thereby the market share of these imports has increased from 10,5 % to 17,9 %. However, the
impact of those imports on the Union industry cannot be considered negative as demonstrated in
recitals 85 to 88 below.
(59) It should be noted that the market share of the Republic of Korea (‘Korea’) doubled during the period
considered, reaching 4,4 %. The Korean average import prices decreased during the period considered,
however remaining consistently higher than the average selling price of Chinese export sales.
6. Economic situation of the Union industry
(60) 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.
6.1. Production
(61) The Union industry’s production first increased by 5,8 % in 2007 and 11,6 % in 2008, compared to
2006, and then declined sharply during the RIP, by 56 % compared to 2008.
( 1 ) See recital 65 of Regulation (EC) No 2268/2004.

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Table 4
declined sharply, during the RIP. This development is in
line with the general trend of decreasing consumption on
Total Union production
the Union market.
2006 2007 2008 RIP
Table 7
Volume (tonnes)
Sales to unrelated customers
Production 10
094 10
679 11
268 4
861
2006 2007 2008 RIP
Index (2006 = 100) 100 106 112 48
Volume (tonnes) 5
594 5
630 5
874 2
292
6.2. Capacity and capacity utilisation rates
Index (2006 = 100) 100 101 105 41
(62) Production
capacity
increased
by
10,8
%
between
2006
and the RIP. As production decreased, in particular
6.5. Market share
during the RIP, the resulting capacity utilisation showed
an overall decrease of 57 % between 2006 and the RIP,
(65) The
market
share
held
by
the
Union
industry
was
rather
reaching a 39 % capacity utilisation during the RIP.
stable between 2006 and 2008, to increase thereafter by
4 percentage points between 2008 and the RIP. Overall,
there has been an increase of 5 percentage points during
the period considered.
Table 5
Production capacity and capacity utilisation
Table 8
2006 2007 2008 RIP
EU Market share
Volume (tonnes)
2006 2007 2008 RIP
Production capacity 11
110 11
610 12
230 12
310
EU Market share 56
% 55
% 57
% 61
%
Index (2006 = 100) 100 105 110 111
Index (2006 = 100) 100 99 103 109
Capacity utilisation 91
% 92
% 92
% 39
%
6.6. Growth
Index (2006 = 100) 100 101 101 43
(66) As
the
decrease
in
sales
was
slightly
lower
than
the
decrease in consumption, the Union industry was able
6.3. Stocks
to gain some market share.
(63) The level of closing stocks of the Union industry
increased by 20 % in 2008 compared to 2006 and
6.7. Employment
then decreased by 26 % during the RIP.
(67) The level of employment of the Union industry declined
by 17 % between 2006 and the RIP. Employment
decreased also in the period 2006-2008, when
Table 6
production slightly increased, showing the efforts made
by Union industry to improve its productivity. During
Stocks
RIP however, the sharp decrease of the output lead to
a strong deterioration of employment.
2006 2007 2008 RIP
Volume (tonnes)
Table 9
Closing stock 1
714 1
808 2
054 1
514
Employment
Index (2006 = 100) 100 106 120 88
2006 2007 2008 RIP
Average (period
6.4. Sales volume
considered)
(64) The sales of the Union industry on the Union market to
Total employment 674 667 653 557
unrelated customers slightly increased between 2006 and
2008 and then decreased by 61 % between 2008 and the
Index (2006 = 100) 100 99 97 83
RIP. Sales volumes increased in 2007 and 2008 but

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Official Journal of the European Union
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6.8. Productivity
6.11. Investments and ability to raise capital
(68) Productivity
of
the
Union
industry’s
workforce,
measured
(72) Between
2006
and
2008,
the
annual
flow
of
investments
as output per person employed per year, increased in
in the product concerned made by the Union industry
2007 and 2008 by 7
% and 15
% respectively,
increased by 18 %. Investments between 2007 and 2008
compared to 2006, and then decreased by 49 %
increased by 103
%. However, during the RIP
between 2008 and the RIP.
investments decreased by 65 % compared to 2008.
Table 10
(73) Investments
were
mainly
made
in
the
construction
of
Productivity
new facilities to produce tungsten material from used

materials and scrap. Investments had to be reduced due
to: (i) the decrease on the general level of production in
2006 2007 2008 RIP
the Union market, (ii) the distortions in the raw materials
Productivity (tonnes
15 16 17
9
(see recital 39), (iii) the economic crisis.
per year/employee)
Index (2006 = 100) 100 107 115 58
(74) During
the
RIP,
no
significant
investments
were
made.
This can be explained in large part by the economic crisis
which began in 2008 and reached its deepest point
6.9. Sales prices
during the RIP when access to new capital was ever
more difficult.
(69) Average
ex-works
sales
price
of
the
Union
industry
to
unrelated customers in the Union followed a declining
trend over the period considered. Overall, the Union
Table 13
industry had to decrease its prices by 15,4 % between
2006 and the RIP.
Investments
2006 2007 2008 RIP
(70) As
explained
in
recitals
55
and
56,
the
prices
of
dumped
imports from the PRC followed a similar trend to that of
Net investments
18 403 10
711 21
756 7
568
the Union industry, but were consistently lower than the
('000 EUR)
prices of the Union industry. During the RIP, prices from
the PRC were more than 10 % lower than the Union
Index (2006 = 100) 100 58 118 41
industry’s prices.
6.12. Profitability and return on investments
Table 11
(75) Thanks in part to the anti-dumping measures in force
Unit price EU market
and in part to the efforts made by the Union industry to
diversify the raw material sources, between 2006 and
2006 2007 2008 RIP
2008 the Union industry was able to maintain a
positive level of profitability, even if it overall decreased
Unit prices of 31 030 29
995 29
072 26
241
Union sales
by 26 % during this period. During the RIP, however, the
(EUR/tonne)
Union industry had a much less favourable result,
showing a certain fragility in this respect.
Index (2006 =
100 97 94 85
100)
(76) The
return
on
investments
(‘ROI’)
broadly
followed
the
profitability trend over the whole period considered.
6.10. Wages
(71) Between 2006 and the RIP, the average wage per
Table 14
employee increased by 4,8 %.
Profitability and ROI
Table 12
2006 2007 2008 RIP
Labour cost
Net Profit of EU 10,3 % 5,8
% 7,6
% –
19,5
%
sales to unrelated
2006 2007 2008 RIP
customers (% of
net sales)
Annual labour cost 53 614 54
613 56
564 56
221
per employee
ROI (net profit in % 34,8 % 22,1
% 28,8
% –
28,6
%
of net book value
Index (2006 = 100) 100 102 106 105
of investments)

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24.3.2011 Official
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European
Union
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6.13. Cash flow
7.2. Impact of the economic crisis
(77) The trend of cash-flow, which is the ability of the
(81) Due
to
the
very
negative
economic
conditions
prevailing
industry to self-finance its activities, remained positive
during the RIP in the tungsten’s downstream sector, in
during the period under investigation. However,
particular in the sector of steel and cemented carbides,
between 2006 and the RIP, it decreased by around 35 %.
which represents the majority of tungsten consumption
in the Union, the Union industry drastically reduced
production and sales of the product concerned.
Table 15
Cash flow
(82) Prior to the crisis, companies operating in the down
stream sector had high level of tungsten' stocks that
2006 2007 2008 RIP
were not built up during the RIP, further affecting the
Cash flow ('000 36 125 39
868 44
102 23
540
production level of the Union industry.
EUR)
Index (2006 = 100) 100 110 122 65
(83) As production decreased, and as the Union industry is a
capital intensive one, thus needing to produce certain
6.14. Magnitude of dumping margin
volumes to keep down the unit fixed cost, the profit
ability was seriously affected.
(78) Dumping from PRC continued during the RIP at a level
which is significantly above the current level of measures.
Furthermore, given the distortions on raw materials, the
spare capacity and prices of the imports from the PRC,
(84) However, the analysis of the Union industry, before the
the impact on the Union industry of the actual margins
crisis, proves the effectiveness of the anti-dumping
of dumping cannot be considered to be negligible.
measures in force. The investigation showed that the
largest Union producers were making important
investments in order to avoid the raw material
distortions while at the same time they were able to
6.15. Recovery from past dumping
compete in the market keeping a healthy position.
(79) It
was
analysed
whether
the
Union
industry
recovered
from the effects of past dumping. It was concluded
that it managed to recover to a large extent from such
effects given that the anti-dumping measures in force
7.3. Imports from other countries
proved to be effective. However, the economic crisis
stopped that process and has accentuated the difficulties
(85) It
is
estimated
that
the
volume
of
imports
from
other
of the Union industry.
third countries decreased by 36 % from 1 500 tonnes in
2006 to 675 tonnes in the RIP. The market share of
imports from other countries increased from 10,5 % in
2006 to 17,9 % in the RIP. Their average imports price
7. Impact of dumped imports and other factors
decreased by 8,9 % between 2006 and the RIP. The main
importing countries were South Korea and the USA.
7.1. Impact of the dumped imports
(80) In parallel to the shrinking consumption in the Union,
the market share of Chinese imports decreased from
7,1 % to 2,1 % (see recital 52). The available information
(86) The
market
share
of
imports
from
South
Korea
doubled
indicates that these imports were made at prices which
over the period considered (from 2,2 % to 4,4 %).
were lower than those of the Union industry and also
However, the available information indicates that during
lower than those of the imports originating in other third
the RIP these imports were made at prices only slightly
countries. As mentioned in recital 56 above, based on a
lower than those of the Union industry (by 6,6 %), but
calculation excluding anti-dumping duty, the Chinese
higher (by 9,8 %) than those of the imports originating in
imports undercut the Union industry prices by 10,7 %
the PRC.
during the RIP. It is recalled that the duty rate amounts
to 33 %. Consequently, the level of undercutting demon
strates on one hand the effectiveness of the duties in
place and on the other hand the necessity to continue
(87) The
market
share
of
imports
from
the
USA
decreased
by
the measures. This conclusion is reinforced by the fact
15,1 percentage points over the period considered (from
that the undercutting found was at the same level as in
4,2 % to 3,6 %). The available information indicates that
the last review investigation. Hence, the price impact of
during the RIP these imports were made at prices which
dumped imports from the PRC on the Union industry
were above those of the Union industry and thus also
remained unchanged and, in the absence of any evidence
substantially higher (by 31 %) than those of the imports
pointing to the contrary, it is likely to continue.
originating in the PRC.

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L 78/10
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Official Journal of the European Union
24.3.2011
(88) In
conclusion,
among
the
biggest
importers
of
tungsten
share the impact of those imports on the situation of the
carbide into the EU, the South Korean and US imports
Union industry cannot be considered negative, as demon
could not have a negative impact on the situation of the
strated in recital 88 above.
Union industry mainly because of their price levels
(similar or even higher than the Union industry prices)
and in the case of the US also because of the decreasing
market share.
(95) With regard to the viability of the Union industry it must
be noted that the evidence collected during the investi
gation showed that the Union industry has been able to
8. Conclusion
compete under normal market conditions against the
imports from third countries and even when prices
(89) Due
to
the
effective
anti-dumping
duties
in
place,
the
were lower than those of the Union producers the gap
Union industry was able to recover to some extent
was not as significant as with the prices from China, as
from the effects of past injurious dumping.
demonstrated in recitals 85 to 88 above.
(90) Nevertheless,
it
cannot
be
concluded
that
the
situation
of
(96) As a result of the amelioration of the Union industry
the Union industry is secure. Although almost all injury
situation in the years previous to the RIP, the industry
indicators relating to the financial performance of the
invested in new cutting edge technology to produce the
Union producers — such as profitability, return on
product concerned from scrap and partially circumvent
investments and cash-flow — improved during the first
the distortions in place on the raw materials.
years of the period considered, the investigation also
showed that during the RIP all injury indicators
deteriorated.
(97) Taking into account the overall situation of the Union
industry as well as the imports from PRC in the period
(91) Notwithstanding
the
fact
that
the
decrease
in
demand
from 2006 to RIP, in conclusion, in view of the positive
during the RIP could be partially attributed to the
developments of some indicators pertaining to the Union
economic crisis, the investigation carefully analysed the
Industry, it is considered that the Union industry did not
impact of low dumped priced exports from the PRC on
suffer material injury during the period considered. It was
the situation of the Union industry.
therefore examined whether there was a likelihood of
recurrence of injury should the measures be allowed to
lapse.
(92) As
shown
under
recital
52,
volumes
of
imports
from
the
PRC indeed decreased between 2006 and the RIP. The
prices of those imports decreased by 14 % over the same
period, which when analysed from the perspective of the
E. LIKELIHOOD OF RECURRENCE OF INJURY
four-year period considered mirrors the development of
1. Preliminary remarks
the Union industry prices. It is notable, however, that the
substantial price decrease of the Chinese dumped imports
(98) As described in recitals 89 to 97, the imposition of anti-
occurred between 2006 and 2007 (by 15 %), i.e. long
dumping measures allowed the Union industry to recover
before the economic crisis in the period when the Union
from the injury suffered, but only to some extent. Indeed
industry was in the process of recovery. The prices of
when the exceptional levels of Union consumption
dumped imports from PRC stabilised thereafter and the
experienced during most of the period considered
financial-crisis related decrease appears to be limited. The
significantly decreased during the RIP, the Union
timing of the substantial price decrease on the part of the
industry appeared in a fragile and vulnerable situation,
Chinese exporters (before crisis) could indicate that they
still exposed to the injurious effect of the dumped
were setting off more concentrated and forceful price
imports from the PRC.
strategy in order to undercut the Union industry prices.
Indeed the price differential between Chinese export
prices and those of the Union industry amounted to
27 % and 22,8 % in 2007 and 2008 respectively.
(99) In
accordance
with
Article
11(2)
of
the
basic
Regulation,
imports from the country concerned were assessed in
order to establish if there was a likelihood of recurrence
(93) In
2008,
export
prices
from
China
were
22,8
%
lower
of injury.
than those to the Union industry. During the RIP, the
gap decreased to 15,7 %. With the sharp decline in
consumption, Union producers had to reduce their
prices in order to keep market share.
2. Chinese export volumes and prices to third
countries
(100) It was found that export price of Chinese sales on other
(94) As shown under recital 57, the volume of imports from
third-country markets were also lower to those charged
other third countries decreased by 36 %, in line with the
to the EU (roughly between 10 and 20 % lower in
decrease in consumption. Despite an increase in market
different years throughout the period considered, except

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24.3.2011 Official
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Union L
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in 2007). The Chinese exporter’s sales to non-EU
F. UNION INTEREST
countries were made in significant quantities, accounting
for over 80 % of its total export sales. Therefore, it was
1. Introduction
considered that, should measures lapse, Chinese
exporting producers would have an incentive to shift
(106) In accordance with Article 21 of the basic Regulation, it
significant quantities of exports from other third
was examined whether the maintenance of the existing
countries to the more attractive Union market.
anti-dumping measures would be against the interest of
the Union as a whole. The determination of the Union
interest was based on an appreciation of the various
interests involved, i.e. those of the Union industry,
3. Spare capacity in the PRC market
importers and users.
(101) As described in recitals 34 to 42, data collected during
the investigation showed that there is a significant spare
capacity available in the PRC. Clear indications were
(107) It should be recalled that, in the previous investigations,
found pointing to the conclusion that a large part of
the adoption of measures was considered not to be
this spare capacity could be used to increase exports to
against the interest of the Union. Furthermore, the fact
the Union in the absence of anti-dumping measures. This
that the present investigation is a review, thus analysing a
is confirmed in particular because there are no indi
situation in which anti-dumping measures have already
cations that third-country markets or the domestic
been in place, allows the assessment of any undue
market could absorb any additional production in the
negative impact on the parties concerned by the
PRC.
current anti-dumping measures.
4. Conclusion
(108) On this basis it was examined whether, despite the
conclusions on the likelihood of a continuation of
(102) The Union industry had been suffering from the effects
dumping and recurrence of injury, compelling reasons
of the Chinese dumped imports for several years and is
existed which would lead to the conclusion that it is
still currently in a fragile economic situation.
not in the Union interest to maintain measures in this
particular case.
(103) As shown above, the Union industry managed to recover
from the Chinese dumping practice thanks to the anti-
2. Interest of the Union industry
dumping measures in force. During the RIP, however, it
found itself in a difficult economic situation mainly due
(109) In view of the conclusions on the situation of the Union
industry set out in recitals 89 to 97 above, and pursuant
to the economic crisis. In this context, should the Union
to the arguments relating to the analysis on the like
industry be exposed to increased volumes of dumped low
lihood of recurrence of injury as explained in recitals
priced imports from the country concerned, this would
102 to 105, it can also be considered that the Union
be likely to result in a further deterioration of its sales,
industry would be likely to experience a serious deterio
market share, sales prices, as well as a consequent
ration of its financial situation in case the anti-dumping
deterioration of its financial situation.
duties were allowed to expire.
(104) In addition, as stated in recital 56 above, it was also
(110) It is considered that the continuation of measures would
found that the fact that the sales price of Chinese
benefit the Union industry which should then be able to
producers undercut those of the Union industry on
increase sales volumes and, in all likelihood, sales prices
average almost 11 % appears to indicate that in the
thereby generating the necessary return level which
absence of measures Chinese exporting producers are
would enable it to continue to invest in new technology
likely to export the product concerned to the Union
for its production facilities. By contrast, the discon
market at prices considerably lower than those of the
tinuation of the measures would halt the recovery of
Union industry.
the Union industry, seriously threatening its viability,
and, as a consequence, putting its existence at risk,
thus reducing supply and competition on the market.
(105) In view of the findings made during the investigation,
namely the spare capacity in the PRC, the distortions
found in the market for raw materials, the potential of
3. Interest of importers/users
the exporting producers in the country concerned to
raise and/or redirect their export volumes to the Union
(111) One user came forward and submitted a questionnaire
market, the pricing behaviour of the Chinese in other
reply. The cooperating user claimed that the continuation
third countries and the attractiveness of the more
of measures would not have a negative impact on
lucrative Union market, any repeal of the measures
competition in the Union market, but that, on the
would point to a likelihood of recurrence of injury.
contrary, it would allow the downstream industry to
The latter would be even more serious taking into
have a wider range of suppliers competing at market
account the present economic crisis.
prices.

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L 78/12
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Official Journal of the European Union
24.3.2011
(112) It is recalled that, in the previous investigations, it was
subsequent to that disclosure. The submissions and
found that the impact of the imposition of measures
comments were duly taken into consideration where
would not be significant for the users ( 1 ). Despite the
warranted.
existence of measures, importers/users in the Union
were able to continue to source their supply, inter alia,
from the PRC. No indications were brought forward
(117) It follows from the above that, as provided for by
whether there have been difficulties in finding other
Article 11(2) of the basic Regulation, the anti-dumping
sources. It is therefore concluded that the maintenance
measures applicable to imports of tungsten carbide,
of the anti-dumping measures is not likely to have a
tungsten carbide simply mixed with metallic powder
serious effect on importers/users in the Union.
and fused tungsten, originating in PRC should be main
tained. It is recalled that these measures consist of ad
valorem duties,
4. Conclusion
HAS ADOPTED THIS REGULATION:
(113) The effects of the continuation of measures can be
expected to assist the Union industry, with consequent
beneficial effects on the competitive conditions on the
Article 1
Union market and the reduction of the threat of closures
and reductions in employment.
1. A
definitive
anti-dumping
duty
is
hereby
imposed
on
imports of tungsten carbide, tungsten carbide simply mixed
with metallic powder and fused tungsten carbide currently
falling within CN codes 2849 90 30 and ex 3824 30 00 (
(114) Furthermore, the continuation of the measures can be

2 )
expected to benefit the users/importers by maintaining
(TARIC code 3824 30 00 10) and originating in the People’s
a wide range of suppliers in the Union market.
Republic of China.

2. The
rate
of
duty
applicable
to
the
net
free-at-Union-
(115) Given the above analysis, it is concluded that the
frontier price, before duty, for the products described in
continuation of measures is not against the Union
paragraph 1, shall be 33 %.
interest.
3. Unless
otherwise
specified,
the
provisions
in
force
concerning customs duties shall apply.
G. ANTI-DUMPING MEASURES
(116) All parties were informed of the essential facts and
Article 2
considerations on the basis of which it was intended to
recommend that the existing measures be maintained.
This Regulation shall enter into force on the day following its
They were also granted a period to submit comments
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, 21 March 2011.
For the Council
The President
MARTONYI J.
( 2 ) The particles are irregular and not free flowing in contrast to ‘ready
to press powder’ particles, which are spherical or granular shaped,
homogeneous and free flowing. The lack of flowability can be
measured and established by using a calibrated funnel e.g. a HALL
( 1 ) See recital 101 of Regulation (EC) No 2268/2004.
flow meter according to ISO standard 4490.

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