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4.6.2013 Official
Journal
of
the
European
Union L
150/1
II
(Non-legislative acts)
REGULATIONS
COUNCIL IMPLEMENTING REGULATION (EU) No 508/2013
of 29 May 2013
imposing a definitive anti-dumping duty on imports of certain tungsten electrodes 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,
review of the anti-dumping measures applicable to
imports of certain tungsten electrodes originating in the
PRC.
Having regard to the Treaty on the Functioning of the European
Union,
(3) The
review
was
initiated
following
a
substantiated
request
lodged by Eurométaux (‘the applicant’) on behalf of a
Union producer representing more than 50 % of the
Having regard to Council Regulation (EC) No 1225/2009 of
Union production of certain tungsten electrodes.
30 November 2009 on protection against dumped imports
from countries not members of the European Community ( 1 )
(4)
The request was based on the grounds that the expiry of
(‘the basic Regulation’), and in particular Article 9(4) and 11(2),
the measures would be likely to result in a continuation
(5) and (6) thereof,
of dumping and injury to the Union industry.
3. Investigation
Having regard to the proposal from the European Commission
after consulting the Advisory Committee,
3.1. Review investigation period and the period considered
(5) The
investigation
of
continuation
or
recurrence
of
dumping covered the period from 1 January 2011 to
Whereas:
31 December 2011 (‘the review investigation period’ or
‘RIP’). The examination of the trends relevant for the
assessment of the likelihood of continuation or
A. PROCEDURE
recurrence of injury covered the period from 1 January
2008 to the end of the RIP (‘the period considered’).
1. Measures in force
(1) Following
an
investigation
(the
‘original
investigation’)
3.2. Parties concerned by the investigation
the Council, by Regulation (EC) No 260/2007 ( 2 ),
imposed a definitive anti-dumping duty on imports of
(6) The
Commission
officially
advised
the
applicant,
the
certain tungsten electrodes originating in the People’s
other known Union producer, exporting producers in
Republic of China (‘the PRC’) (the ‘original measures’).
the PRC, unrelated importers and users known to be
The measures took the form of an ad valorem duty of
concerned, producers in the potential analogue
63,5 % for all companies except three Chinese exporting
countries and the representatives of the PRC of the
producers to whom individual duties were granted.
initiation of the expiry review. Interested parties were
given the opportunity to make their views known in
writing and to request a hearing within the time limit
set out in the Notice of initiation.
2. Initiation of an expiry review
(2) On
9
March
2012,
the
Commission
announced
by
a (7) All
interested
parties,
who
so
requested
and
showed
that
notice (‘Notice of initiation’) ( 3 ), published in the Official
there were particular reasons why they should be heard,
Journal of the European Union, the initiation of an expiry
were granted a hearing.
( 1 ) OJ L 343, 22.12.2009, p. 51.
( 2 ) OJ L 72, 13.3.2007, p. 1.
(8) In
view
of
the
apparently
large
number
of
exporting
( 3 ) OJ C 71, 9.3.2012, p. 23.
producers in the PRC and unrelated importers in the

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L 150/2
EN
Official Journal of the European Union
4.6.2013
Union involved in the investigation, sampling was
B. PRODUCT UNDER REVIEW AND LIKE PRODUCT
envisaged in the Notice of initiation, in accordance
with Article 17 of the basic Regulation. In order to
(13) The
product
concerned
is
the
same
as
that
covered
by
enable the Commission to decide whether sampling
Regulation (EC) No 260/2007, namely tungsten welding
would be necessary and, if so, to select a sample, the
electrodes, including tungsten bars and rods for welding
above parties were requested, pursuant to Article 17 of
electrodes, containing 94 % or more by weight of
the basic Regulation, to make themselves known within
tungsten, other than those obtained simply by sintering,
15 days of the publication of the Notice of initiation and
whether or not cut to length, originating in the PRC (‘TE’
to provide the Commission with the information
or ‘the product under review’), currently falling within
requested in the Notice of initiation.
CN codes ex 8101 99 10 and ex 8515 90 00.
(9) Three
importers
made
themselves
known.
None
of
them,
however, imported certain tungsten electrodes originating
(14) The
product
under
review
is
used
in
welding
and
similar
in the PRC during the RIP.
processes. TE are used in a wide variety of industrial
sectors such as construction, shipbuilding, automobile
(10) As only two exporting producers from the PRC came
manufacturing, marine, chemical and nuclear engin
forward with the requested information it was not
eering, aerospace as well as oil and gas pipelines. Based
necessary to select a sample of exporting producers.
on the physical and chemical characteristics and the
substitutability of the different types of the product
(11) The
Commission
sent
questionnaires
to
all
parties
known
from the perspective of the user, all TE are considered
to be concerned and to those who made themselves
to constitute a single product for the purpose of this
known within the deadlines set in the Notice of initi
proceeding.
ation. Replies were received from two Union producers,
two exporting producers in the PRC and one producer in
the USA.
(15) The
investigation
confirmed
that,
as
in
the
original
inves
tigation, the product under review and that manufactured
(12) The
Commission
sought
and
verified
all
the
information
and sold on the domestic market of the PRC, as well as
it deemed necessary for the determination of the like
that produced and sold by the Union industry on the
lihood of continuation or recurrence of dumping and
Union market and that produced and sold on the
resulting injury and of the Union interest. Verification
analogue country market have the same basic physical
visits were carried out at the premises of the following
and technical characteristics and the same basic uses and
companies:
are therefore considered to be alike within the meaning
of Article 1(4) of the basic Regulation.
(a) Union producers
— Plansee SE, Austria
C. LIKELIHOOD OF A CONTINUATION OR A
RECURRENCE OF DUMPING
— Gesellschaft für Wolfram Industrie mbH,
1. Preliminary remarks
Germany
(16) In
accordance
with
Article
11(2)
of
the
basic
Regulation,
(b) Exporting producers in the PRC
it was examined whether dumping was currently taking
place and whether the expiry of the existing measures
— Shandong Weldstone Tungsten Industry Co., Ltd,
would be likely to lead to a continuation or recurrence of
Zibo
dumping.
— Shaanxi Yuheng Tungsten & Molybdenum
Industrial Co., Ltd, Baoji
(17) As
explained
above,
it
was
not
necessary
to
select
a
sample of exporting producers in the PRC. The two
(c) Related company to one cooperating exporting producer in
cooperating companies covered the imports of product
the PRC
concerned from the PRC to the Union in a range of 80 %
to 85 % during the RIP. On this basis, it was concluded
— Shanghai Weldstone Asia Co., Ltd, Shanghai
that cooperation was high.
(d) Related companies to one cooperating exporting producer
in the European Union
(18) One
of
the
cooperating
exporting
producers
benefited
from market economy treatment (‘MET’) in accordance
with Article 2(7)(c) of the basic Regulation, while the
— Weldstone GmbH, Wilnsdorf, Germany
second benefited from individual treatment (‘IT’) in
accordance with Article 9(5) of the basic Regulation,
— Binzel Benelux bvba, Eke – Nazareth, Belgium
granted to them during the original investigation. It is
recalled that in the context of investigations in
(e) Analogue Country
accordance with Article 11(2) of the basic Regulation,
MET and IT are not reconsidered. A third company,
— Global Tungsten & Powders Corp, Towanda,
who did not cooperate in the current expiry review,
USA.
was granted IT in the original investigation.

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4.6.2013 Official
Journal
of
the
European
Union L
150/3
2. Dumping of imports during the RIP
(25) It
was
subsequently
examined
whether
the
domestic
sales
of the like product could be regarded as being made in
2.1. Analogue country
the ordinary course of trade pursuant to Article 2(4) of
the basic Regulation, by establishing the proportion of
(19) Since
the PRC is an economy in transition and in
profitable sales to independent customers on the
accordance with the provisions of Article 2(7)(a) of the
domestic market.
basic Regulation, normal value for exporting producers
not granted market economy treatment has to be
determined on the basis of the price or constructed
value in an appropriate market economy third country
(‘analogue country’).
(26) For
the types of the product concerned where the
domestic sales were representative and made in the
ordinary course of trade, normal value was established
on the prices paid by independent customers in the
(20) As in the original investigation, the USA was proposed as
exporting country. For the remaining types of the
analogue country in the Notice of initiation for the
product under review the normal value had to be
purpose of establishing normal value. Interested parties
constructed in accordance with Article 2(3) of the basic
were given the opportunity to comment on the appropri
Regulation. Therefore, the established normal value was
ateness of this choice. No comments were received in
calculated using the company’s cost of manufacturing
this regard.
and adding selling, general and administrative costs
(SG&A) and profit achieved on the domestic sale made
in the ordinary course of trade in accordance with
Article 2(6) of the basic Regulation.
(21) The
Commission
also
examined
whether
other
countries
could be a reasonable choice of an analogue country and
identified other third countries from which imports of
tungsten electrodes were recorded in Eurostat. Potential
(27) Following disclosure, one party argued that the
known producers in these countries were contacted and
methodology used to determine SG&A expenses was
invited to cooperate in the investigation. However, no
different from the one used in the original investigation
cooperation was obtained.
which may have had an impact on the determination of
the profit margin used to calculate the constructed
normal value in accordance with Article 2(6) of the
basic Regulation. Further to the information already
(22) It was considered that the USA was representative as a
previously submitted in the investigation the party did
reference market, especially in view of the openness and
not substantiate its claim by any evidence. It is noted that
competitiveness of their domestic market. The USA was
in accordance with Article 2(5) of the basic Regulation
used also as an analogue country in the original investi
SG&A expenses were allocated on turnover basis and
gation. No new or changed circumstances which would
that this methodology was also used in the original
justify a change appeared to exist nor were any such
investigation.
circumstances communicated to the Commission.
(28) Profit
used
in
the
initial
investigation
was
not
from
the
(23) Therefore,
the
USA
has
been
used
as
an
analogue
market
OCOT test (ordinary course of trade) as none of the
economy country for the purpose of this review. The
exported types of the product concerned were sold on
only known USA producer was contacted and agreed
the domestic market in the ordinary course of trade. The
to cooperate, to reply to the questionnaire and to
current expiry review showed that some types of the
accept a verification visit. The verified sales and
product concerned were profitable and therefore, in
production figures of this company have been used for
compliance with Article 2(3) and (6) of the basic Regu
the determination of the normal value for companies not
lation, profit of these profitable transactions was used for
granted MET during the original investigation.
constructing the normal value.
2.2. Normal value
(29) As far as the company not granted MET in the original
(24) For the company granted MET in the original investi
investigation is concerned, pursuant to Article 2(7)(a) of
gation, normal value has been established based on its
the basic Regulation, normal value was established on the
data. In accordance with Article 2(2) of the basic Regu
basis of information collected from the cooperating
lation, it was examined whether the domestic sales of TE
producer in the analogue country. Domestic sales of
to independent customers were representative during the
the producer in the analogue country were found to be
RIP, i.e. if the sales volume of the product intended for
made in sufficient quantities and in the ordinary course
domestic consumption represented 5 % or more of their
of trade and could thus be used as a basis to determine
exports of the product under review to the Union.
normal value for the company not granted MET.

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L 150/4
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Official Journal of the European Union
4.6.2013
2.3. Export price
(36) In
accordance
with
Article
11(10)
of
the
basic
Regu
lation, export prices were established by deducting the
(30) Regarding
the
company
granted
MET,
all
export
sales
to
anti-dumping duties paid, as none of the parties
the Union were made via related importers and
submitted any evidence that the duty was duly reflected
subsequently resold to related and unrelated companies
in resale prices and subsequent selling prices in the
in the Union. The export price was therefore constructed,
Union market.
pursuant to Article 2(9) of the basic Regulation, on the
basis of the price at which the imported products were
first resold to an independent buyer, duly adjusted for all
costs incurred between importation and resale, as well as
2.4. Comparison
a reasonable margin for SG&A and profits. In this regard,
the related companies’ own SG&A costs were used.
(37) The
comparison
between
normal
value
and
export
price

was made on an ex-works basis.
(31) Following
disclosure
one
party
argued
that
when
deter
(38) For
the
purpose
of
ensuring
a
fair
comparison
between
mining SG&A of the related importers, certain expenses
the normal value and the export price of the both
were taken into consideration that were related to the
cooperating exporting producers, and in accordance
sales of other products than the product concerned and
with Article 2(10) of the basic Regulation, due
that these expenses should therefore be excluded. It is
allowance in the form of adjustments was made with
noted that the verified SG&A expenses as provided by
regard to differences in transport, insurance and credit
the companies concerned were taken into consideration
costs which affected prices and price comparability.
when constructing the export price in accordance with
Article 2(9) of the basic Regulation. The claim that the
SG&A expenses reported included SG&A expenses from
sales of other products was not supported by any
2.5. Dumping margin
evidence and had therefore to be rejected.
(39) As
provided
for
under
Article
2(11)
of
the
basic
Regu
lation, the dumping margin was established on the basis
of a comparison of the weighted average normal value
(32) In
addition,
the
comments
submitted
by
an
interested
with the weighted average export price.
party on export prices were based on an erroneous
quotation of the relevant currency. Therefore this claim
was rejected.
(40) For
the
cooperating
exporting
producer
granted
MET
in
the original investigation this comparison showed that
this company continued dumping at significant levels.
(33) As far as the profit margin is concerned, none of the
unrelated importers in the Union cooperated. In the
original investigation, the profit margin of the related
importers was used, based on the fact that the activities
(41) For
the
cooperating
exporting
producer
granted
IT
in
the
of the unrelated importers were not sufficiently
original investigation as well as country-wide dumping
comparable to that of the related importer concerned.
margin applicable to all other non-cooperating
The investigation showed that the activities of the
exporting producers in the PRC showed a significant
related importer were the same during the RIP as
level of dumping even higher than in the original inves
during the investigation period of the original investi
tigation.
gation, i.e. the majority of the TE imported was further
integrated into the main product produced by the group,
the welding torch. It should also be noted that the TE are
3. Development of imports should measures be
of minor value compared to the end-product. On this
repealed
basis and as in the original investigation it was concluded
that the related importer’s own profit margin would
3.1. Preliminary remark
constitute an accurate basis for a profit margin to
construct the export price.
(42) Further to the finding of the existence of dumping during
the RIP, the likelihood of continuation of dumping
should measures be repealed was investigated.
(34) Regarding
the
company
granted
IT
in
the
original
inves
tigation, all export sales to the Union were made directly
to independent customers established in the Union. In
(43) In
this
regard,
it
should
be
noted
that
the
cooperating
accordance with Article 2(8) of the basic Regulation, the
exporting producers represented only around 10 % of the
export price was therefore established on the basis of the
total production capacity in the PRC. Therefore, findings
prices actually paid or payable.
had to be largely based on information submitted in the

review request as well as publicly available information.
The export price behaviour of Chinese producers to other
third country markets, the Chinese production capacity
(35) The determination of the export price of all other
as well as available spare capacities and the attractiveness
producers established in the PRC was based on imports
of the Union market for Chinese exporters were
statistics available in the Article 14(6) database.
considered in particular.

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4.6.2013 Official
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European
Union L
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3.2. Export price behaviour of Chinese producers to other third
3.6. Conclusion of the likelihood of continuation of dumping
country markets
(50) The foregoing analysis demonstrates that Chinese
(44) As
far
as
exports
to
other
third
country
markets
are
imports continued to enter the Union market at
concerned, it should be noted that the statistical
dumped prices with significant dumping margins. Given
information available from Chinese public databases
most notably the analysis of price levels on the Union
covers a broader product scope than the product under
market, and the interest Chinese exporters have shown in
review and therefore no meaningful analysis of quantities
the Union market, as well as the significant spare
exported to other markets or prices on these markets
capacities available in the PRC, going far beyond the
could be made. The two cooperating producers from
total Union consumption, it can be concluded there is
the PRC did not export to unrelated customers in other
a strong likelihood of continuation of dumping should
third markets. On this basis, the export prices to other
measures be removed.
third country markets during the RIP could not be
reliably established and no firm conclusions could be
drawn on the basis of the information available.
D. SITUATION ON THE UNION MARKET
1. Definition of the Union industry
3.3. Spare capacity of the Chinese producers
(51) The
current
investigation
confirmed
that
TE
is
manu
(45) The data on the basis of which the analysis below is
factured by two producers in the Union. Both
made were provided by the applicant in the review
producers cooperated fully with the investigation.
request and was cross-checked with publicly available
information.
(52) The
above companies constitute the Union industry
within the meaning of Article 4(1) and 5(4) of the
(46) On
this
basis,
capacities
of
producers
in
the
PRC
were
basic Regulation and will hereafter be referred to as the
estimated at 1 600 000 kg. The applicant’s estimation of
‘Union industry’.
the capacity utilisation of Chinese producers is around
63 % resulting in an unused capacity of about
600 000 kg, exceeding nearly five times the total Union
2. Preliminary remark
consumption during the RIP. Thus, there are large quan
tities available for export from the PRC, in particular,
(53) Since
there
are
only
two
companies
which
constitute
the
because there are no indications that third country
Union industry, the data referring to the Union industry
markets or the domestic market could absorb this
will be either presented in indexed form or ranges, so as
significant spare capacity.
to protect confidentiality pursuant to Article 19 of the
basic Regulation.
3.4. Volume and prices of dumped imports from the PRC
(54) Since
imports
under
CN
code
level
from
Eurostat
also
(47) Imports from the PRC into the Union increased by 9 %
included products other than TE, information on imports
over the period considered and reached the level of well
have been analysed at TARIC code level, supplemented
above 50 000 kilograms during the RIP representing
by data collected in accordance with Article 14(6) of the
approximately half of the total Union consumption
basic Regulation. TARIC data are considered confidential
during the RIP.
as they provide a level of detail which allows for identi
fication of parties. For this reason some information is
presented in ranges.
(48) Throughout
the
period
considered,
import
prices
were
fluctuating and followed the same trends as the sales
prices of the Union industry on the Union market.
3. Union consumption
Overall, import prices increased from 2008 to the RIP
by 42 % and were still at dumped levels. The price
(55) Union
consumption
was
established
on
the
basis
of
the
growth is mainly explained by the higher cost of the
sales volume of the Union industry on the Union market,
main raw material (tungsten powder) during the RIP.
and import data from Eurostat, at TARIC code level
supplemented by information from data collected in
accordance with Article 14(6) of the basic Regulation.
3.5. Attractiveness of the Union market
(49) The Union market is among the largest in the world
(56) Between
2008
and
the
RIP
(‘period
considered’),
Union
reaching around 20 % of the world consumption of TE.
consumption decreased by 16 %. Consumption in the
Chinese companies have shown a serious interest in
Union has decreased substantially between 2008 and
developing their presence on the Union market which
2009, and has increased since, without reaching the
is supported by the fact that they maintained and even
pre-crisis levels during the RIP. From the low peak in
increased their significant market share of 45 % during
2009 to the RIP, Union consumption increased by
the RIP.
almost 40 %.

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Official Journal of the European Union
4.6.2013
Table 1
Table 3
Consumption
Prices of the imports from the PRC
Volume
2008 2009 2010 RIP
(kg)
2008 2009 2010 RIP
Prices
36,59 33,83 41,56 51,83
Consumption 140
000- 90 000- 110 000- 120 000-
EUR/kg
150 000
100 000
120 000
130 000
Index
100 92 114 142
(2008 = 100)
Index
100 61 75 84
(2008 = 100)
Source: Eurostat, Article 14(6) database.
Source: Questionnaire replies, Eurostat, Article 14(6) database.
5.2. Price undercutting
4. Volume and market share of dumped imports
(60) The
investigation
revealed
that
import
prices
from
the
from the PRC
PRC were undercutting the Union industry average
prices. An undercutting margin of 37 % was established
(57) The volumes and market shares of dumped imports from
during the RIP, and when including the anti-dumping
the PRC was established on the basis of statistical
duty in the calculation, the undercutting margin was
information provided at TARIC level supplemented by
still significant at a level of 24 %. The calculation was
information from data collected in accordance with
based on a comparison of the CIF export prices of the
Article 14(6) of the basic Regulation.
cooperating exporting producers with the average Union
industry prices at ex-work level. The prices were
considered representative for the PRC as the two
cooperating exporting producers covered around 80 %
(58) Notwithstanding
the absolute decrease of the Union
of the imports of TE from the PRC.
consumption, the volume of imports of the product
under review originating in the PRC increased by 9 %
over the period considered, keeping a level well above
50 000 kg during the RIP (see Table 2). This increase,
(61) Following
disclosure
one
exporting
producer
claimed
that
together with the general reduction of the Union
prices were not compared on a per-type basis and due to
consumption during the period considered, led to an
alleged significant price variations between different
increase of the market share of the Chinese exporters
product types the undercutting levels calculated were
to approximately half of the total Union market.
not meaningful. On the basis of the information
available, a price comparison on a per-type basis was
only possible for part of the Union industry’s sales on
the Union market and only for part of the export sales
made to the Union. However, the party did not present
Table 2
evidence that would call into question the reasonableness
of the methodology applied. This claim had therefore to
Imports from the PRC
be rejected.
2008 2009 2010 RIP
Volume 51
771 36
188 39
953 56
289
(62) Following
disclosure
it
was
also
argued
that
the
Chinese
import prices and the Union industry’s sales prices on the
Index
100 70 77 109
Union market were not compared at the same level of
(2008 = 100)
trade. This claim was not substantiated as the party
concerned did not submit any information or evidence
Market share (%) 35-40 35-40 35-40 45-50
that demonstrated consistent and distinct differences in
function and prices of the seller for the alleged different
Source: Eurostat, Article 14(6) database.
levels of trade. This claim was therefore rejected.
5. Prices of the imports from the PRC
6. Imports from other third countries
5.1. Evolution of prices
(63) The
volume
of
imports
and
prices
from
other
countries
during the period considered is shown in the table below.
(59) Prices
from
the
PRC
increased
in
the
region
of
40
%
The volumes and market shares of imports from other
between the year 2008 and the RIP, with a sharp
third countries were established on the basis of statistical
increase during the RIP. The price growth is mainly
information provided at TARIC level supplemented by
explained by the higher cost of the main raw material
information from data collected in accordance with
(tungsten powder) during the RIP.
Article 14(6) of the basic Regulation.

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Table 4
(64) Import
volumes
from
other
third
countries
to
the
Union
market decreased during the period considered by around
Imports from other third countries
33 %. Market shares decreased over the period considered
and were between 30 % to 35 % during the RIP. Prices
2008 2009 2010 RIP
from other third countries increased by 21 % over the
same period.
Vietnam
Volume of
27 878 14
184 13
776 25
833
(65) It is recalled that in the original investigation there were
imports (kg)
no significant imports of the like product to the Union
market other than from the PRC. The original investi
Index
100 51 49 93
gation established that the core markets of the remaining
(2008 = 100)
US and Japanese producers were their respective
domestic markets. It was therefore concluded that
Price
44,36 45,34 46,02 56,01
imports from countries other than the PRC were
EUR/kg
extremely small.
Index
100 102 104 126
(2008 = 100)
(66) Information
provided
by
the
Union
industry
alleged
that
there is no existing production of TE in Vietnam and
South Korea
South Korea and that imports from those countries
were in fact coming from the PRC. However, no
Volume of
21 299 8
174 11
051 3
319
information was obtained confirming this allegation
imports (kg)
during the current investigation.
Index
100 38 52 16
(2008 = 100)
7. Economic situation of the Union industry
Price
50,99 44,16 44,16 59,31
7.1. Preliminary remarks
EUR/kg
(67) Pursuant
to
Article
3(5)
of
the
basic
Regulation,
the
Index
100 87 87 116
Commission examined all relevant economic factors
(2008 = 100)
and indices having a bearing on the state of the Union
industry.
Other third
countries
(68) Since the Union industry is composed of only two
Volume of
7 641 6
247 10
942 9
186
producers, the data are reported in ranges for confiden
imports (kg)
tiality reasons.
Index
100 82 143 120
(2008 = 100)
7.2. Production, production capacity and capacity utilisation
(69) The
Union
industry’s
production
decreased
each
year
Price
43,24 59,82 64,98 57,75
during the period considered. By the end of RIP, the
EUR/kg
production had decreased by 29 % compared to 2008.
Index
100 138 150 134
The trend has been particularly negative during 2009,
(2008 = 100)
with a decrease of more than 40 %.
Total
Table 5
Volume of
56 818 28
605 35
779 38
338
Total Union production
imports (kg)
Volume
Index
100 50 63 67
(kg)
2008 2009 2010 RIP
(2008 = 100)
Production 60
000-
35 000-
50 000-
40 000-
Market share
35-40 30-35 30-35 30-35
70 000
40 000
60 000
50 000
of imports
from other
Index
100 60 82 71
third
(2008 = 100)
countries (%)
Source: Questionnaire replies.
Price
46,70 48,17 51,25 56,71
EUR/kg
(70) Production
capacity
remained
stable
during
the
period
Index
100 103 110 121
considered. As production decreased, the resulting
(2008 = 100)
capacity utilisation showed an overall decrease of 27 %
Source: Eurostat, Article 14(6) database.
between 2008 and the RIP, reaching a 41 % capacity
utilisation during the RIP. Detailed data is shown below:

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L 150/8
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Official Journal of the European Union
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Table 6
Union market, the market share held by the Union
industry fell during the period considered. The Union
Production capacity and capacity utilisation
industry, whilst losing sales volumes, was able to
maintain its market shares through 2009 and 2010,
Volume
but suffered a setback during the RIP, with declining
(kg)
2008 2009 2010 RIP
sales notwithstanding the growing market. This resulted
in a market share of between 20 % to 25 %, slightly
Production
95 000-
95 000-
95 000-
95 000-
capacity
110 000
110 000
110 000
110 000
lower than the one which was registered at the
beginning of the period considered.
Index
100 100 100 100
Table 9
(2008 = 100)
Union market share
Capacity
57 35 47 41
utilisation (%)
2008 2009 2010 RIP
Index
100 60 82 73
Union market
25 %-
25 %-
30 %-
20 %-
(2008 = 100)
share
30 %
30 %
35 %
25 %
Source: Questionnaire replies.
Index
100 107 117 91
(2008 = 100)
7.3. Stocks
Source: Questionnaire replies, Eurostat, Article 14(6) database.
(71) The level of closing stocks of the Union industry
decreased by 20 % between 2008 and the RIP. This
7.6. Growth
trend is in line with the trend of decreasing consumption
on the Union market over the same period.
(74) As
explained
above,
consumption in the Union has
decreased substantially between 2008 and 2009, as a
Table 7
result of the economic downturn, and has increased
since, without reaching the pre-crisis levels during the
Closing stock
RIP. The Union industry, whilst losing sales volumes,
was able to maintain its market shares through 2009
Volume
and 2010, but suffered a setback during the RIP, with
(kg)
2008 2009 2010 RIP
declining sales notwithstanding the growing market.
Closing stock 5
000- 5 000-
5 000-
5 000-
7.7. Employment and productivity
15 000
15 000
15 000
15 000
(75) The level of employment of the Union industry declined
Index
100 70 85 80
between 2008 and the RIP by 13 %.
(2008 = 100)
(76) Following the fall in production, the productivity per
Source: Questionnaire replies.
employee, measures as output in kg per employee, has
also decreased during the period considered. Detailed
7.4. Sales volume
data is shown below:
(72) The
sales
volume
of
the
Union
industry
on
the
Union
Table 10
market to unrelated customers decreased by 23 %
between 2008 and the RIP, with a sharp decrease
Total Union employment and productivity
between 2008 and 2009. This negative trend has been
sharper than the decrease in the total consumption, with
2008 2009 2010 RIP
the exception of year 2010.
Index of
100 65 84 87
employees
Table 8
Index of
100 92 106 83
Sales to unrelated customers
productivity
2008 2009 2010 RIP
Source: Questionnaire replies.
Volume (kg) 40
000- 25 000-
35 000-
30 000-
50 000
30 000
40 000
35 000
7.8. Unit sales prices
Index
100 65 87 77
(77) Unit
sales
prices
of
the
Union
industry
to
unrelated
(2008 = 100)
customers in the Union decreased slightly between
2008 and 2010, partly reflecting the impact of the
Source: Questionnaire replies.
economic crises. Between 2010 and the RIP unit sales
prices increased substantially. Overall, the prices of the
7.5. Market share
Union industry increased by 35 % during the period
considered. This price development, in particular
(73) As
a
result
of
what
is
observed
in
the
previous
recital
between 2010 and the RIP, was caused by the increase
regarding sales volume of the Union industry on the
of prices of the main components making up TE.

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EN
4.6.2013 Official
Journal
of
the
European
Union L
150/9
Table 11
Table 14
Unit price of Union sales
Cash flow
2008 2009 2010 RIP
2008 2009 2010 RIP
Unit price of
80-120 80-120 80-120 100-140
Cash flow
100 99 96 106
Union sales
Index
(EUR per
(2008 = 100)
unit)
Source: Questionnaire replies.
Index
100 94 96 135
(2008 = 100)
7.12. Wages
Source: Questionnaire replies.

(82) Between 2008 and the RIP the wages of the Union
7.9. Profitability
industry decreased by 16 % in line with the reduction

of the number of employees.
(78) Profitability
improved
between
2008
and
the
RIP,
after
having reached a lower level in 2009 and 2010.
However profitability remained negative throughout the
7.13. Magnitude of dumping margin
whole period considered.
(83) Despite the measures in force, substantial dumping
Table 12
continued during the RIP at a level which is significantly
above the current level of measures. Given the large spare
Profitability
capacity, the actual volumes of imports from the PRC
and prices significantly undercutting the Union industry’s
2008 2009 2010 RIP
sales price, the impact on the Union industry of the
actual margins of dumping cannot be considered to be
Profitability
100 95 95 104
negligible.
Union sales
Index
(2008 = 100)
7.14. Recovery from past dumping
Source: Questionnaire replies.
(84) It
was
analysed
whether
the
Union
industry
recovered
from the effects of past dumping. Despite the anti-
7.10. Investment and return on investment
dumping measures in force, the Union industry did not

manage to recover from past dumping. As a response to
(79) Investment
in
the
business
of
the
product
concerned
the price pressure of the Chinese imports the Union
significantly decreased during the period considered.
industry tried to keep their market share but had losses
as a result.
(80) Return
on
investment
followed
the
profitability
trend.
In
2008 the Union industry registered a negative return on
investment which slightly improved, though it remained
8. Conclusion on the situation of the Union industry
negative, during the RIP.
(85) The
Union
industry
remained
in
a
vulnerable
economic
situation and continued to suffer material injury. Almost
Table 13
all injury indicators relating to the financial performance
Investments and return on investment
of the Union industry deteriorated during the period
considered. Consequently, it could not be concluded
Index
that the situation of the Union industry was secure.
(2008 = 100)
2008 2009 2010 RIP
Investments 100
2 23 18
(86) As a response to the price pressure of the Chinese
imports the Union industry tried to keep its market
Return on
100 100 96 103
share, but selling at prices largely below the break-even
investment
level. Indeed, the increase of the sales prices of the Union
industry between 2010 and the RIP is linked to the
Source: Questionnaire replies.
increase of raw material prices and did not cover the
total cost of the Union industry.
7.11. Cash flow and ability to raise capital
(81) The cash flow, which is the ability of the industry to self-
(87) In conclusion, the difficulties of the Union industry can
finance its activities, expressed as a percentage of the
be clearly linked to the massive presence of Chinese low-
turnover of the product concerned, significantly
priced imports of the product under review on the Union
improved during the period considered, although it
market, which are sold at significantly dumped prices,
remained negative.
despite the measures in force. This factor was enough

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L 150/10
EN
Official Journal of the European Union
4.6.2013
to determine a situation where the Union industry suffer
4. Attractiveness of the Union market
losses in an attempt to keep a reasonable market share.
In addition, these difficulties have been further deepened
(94) It was demonstrated that the Chinese exporting
throughout almost the entire period considered by two
producers showed a continuous interest in the Union
factors: the downturn of the market during the economic
market and were able to increase import volumes at
crisis of 2008-09 and, even if to a minor extent, the
the expense of the sales of the Union industry. They
sudden increase of raw material costs during the RIP.
even increased their already significant market share
This led to a scenario where losses have reached
during the RIP.
significant levels.
5. Conclusion
(88) In view of the negative development of the indicators
pertaining to the Union industry, it is considered that
(95) The
Union
industry
had
been
suffering
from
the
effects
the Union industry continued to suffer material injury
of the Chinese dumped imports for several years and is
within the meaning of the Article 3(5) of the basic Regu
currently still in a fragile economic situation.
lation during the period considered.
E. LIKELIHOOD OF CONTINUATION OF INJURY
(96) If
measures
were
allowed
to
lapse
there
is
a
strong
like
lihood of increased dumped imports which could
1. Preliminary remarks
seriously threaten the existence of the Union industry.
Indeed, in the PRC there is a significant spare capacity
(89) During the period considered, the Union industry
which is likely to be largely directed to the Union
appeared in a vulnerable situation, still exposed to the
market, at dumped prices undercutting the Union
injurious effect of the dumped imports from the PRC.
industry sales prices in the Union market, should
measures be allowed to lapse.
(90) 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
(97) In view of the findings of the investigation, namely the
continuation of injury, should measures be allowed to
continuation of dumping, the spare capacity in the PRC,
lapse.
the distortion found in the market for raw materials, the
potential of the exporting producers in the PRC to
redirect their export volumes to the Union market, the
2. Chinese import volumes
price behaviour of the Chinese exporters clearly under
cutting the prices of the Union industry and the attract
(91) It
is
recalled
that
consumption
on
the
Union
market
decreased significantly since the original investigation
iveness of the Union market, any repeal of the measures
mainly due to the economic downturn. In these circum
would point to a likelihood of continuation of injury.
stances, the Chinese import volumes increased to a level
well above 50 000 kg during the RIP. As to the import
F. UNION INTEREST
volumes, this has increased by 9 % while the market
share of the Union industry decreased.
1. Introduction
3. Spare capacity in the PRC
(98) In
accordance
with
Article
21
of
the
basic
Regulation,
it
has been examined whether the maintenance of the
(92) As described in recital 46, based on the information
existing measures would be against the Union interest
available there is significant spare capacity available in
as a whole. The determination of the Union interest
the PRC. It can be expected that a large part of this
was based on an appreciation of the various interests
spare capacity could be used to increase imports in the
involved, i.e. those of the Union industry, of importers
Union market in the absence of anti-dumping measures.
and of users. All interested parties were given the oppor
This is because there are no indications that third country
tunity to make their views known pursuant to
markets or the Chinese domestic markets could absorb
Article 21(2) of the basic Regulation.
the significant Chinese spare capacity. Therefore, the
capacity to significantly increase imports to the Union
exists. The estimation of the unused capacity would
(99) It
should
be
recalled
that
in
the
original
investigation
the
exceed nearly five times the Union consumption during
imposition of measures was considered not to be against
the RIP.
the interest of the Union. Furthermore, the fact that the

present investigation is a review, thus analysing a
situation in which anti-dumping measures have already
(93) Moreover,
information
submitted
during
the
investigation
been in place, allows the assessment of any undue
indicated important distortions in the raw material
negative impact on the parties concerned by the
(ammonium paratungstate – ‘APT’) market used to manu
current anti-dumping measures.
facture the product under review. This raw material is
subject to export quotas imposed by the Chinese auth
orities as well as export taxes. This limits the exports of
(100) On this basis it was examined whether, despite the
APT and artificially increases its world price. These
conclusion on the likelihood of a continuation of
distortions are likely to confer further incentives to the
injurious dumping, compelling reasons existed which
Chinese industry to produce and export at low prices,
would lead to the conclusion that it is not in the
while the Union industry has to produce the like product
Union interest to maintain measures in this particular
on the basis of artificially high raw material prices.
case.

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EN
4.6.2013 Official
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of
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European
Union L
150/11
2. Interest of the Union industry
(107) It follows from the above that, as provided for by
Article 11(2) of the basic Regulation, the anti-dumping
(101) In view of the situation of the Union industry and the
measures applicable to imports of certain tungsten elec
analysis on the likelihood of recurrence of injury, it is
trodes originating in the PRC, imposed by Regulation
clear that the Union industry would be likely to
(EC) No 260/2007 should be maintained.
experience a serious deterioration of its financial
situation in case the anti-dumping measures were
allowed to lapse. Throughout the period considered the
(108) In order to minimise the risk of circumvention due to
Union industry lost production and sales volume while
the high difference in the duty rates, it is considered that
imports from the country concerned increased despite
special measures are needed in this case to ensure the
the measures in force. During the same period the
proper application of the anti-dumping duties. These
financial situation of the Union industry deteriorated as
special measures, which only apply to companies for
it experiences heavy losses. Therefore, effective
which an individual duty rate is introduced, include the
competitive conditions need to be enforced on the
following: the presentation to the customs authorities of
Union market.
the Member States of a valid commercial invoice, which
shall conform to the requirements set out in the Annex
to this Regulation. Imports not accompanied by such an
(102) It is considered that the continuation of measures would
invoice shall be made subject to the residual anti-
benefit the Union industry, which should then be able to
dumping duty applicable to all other producers,
increase sales volumes and improve its financial situation.
By contrast, the discontinuation of the measures would
seriously threaten the viability of the Union industry.
HAS ADOPTED THIS REGULATION:
Article 1
3. Interest of users
1. A
definitive
anti-dumping
duty
is
hereby
imposed
on
(103) None of the 15 contacted users came forward to
imports of tungsten welding electrodes, including tungsten
cooperate. As in the original investigation no ques
bars and rods for welding electrodes, containing 94 % or
tionnaire replies were received from interested users. In
more by weight of tungsten, other than those obtained
the original investigation the non-cooperation was
simply by sintering, whether or not cut to length, currently
explained by the low impact of TE on their production
falling within CN codes ex 8101 99 10 and ex 8515 90 00
costs as it appears that quality and reliability are primary
(TARIC codes 8101 99 10 10 and 8515 90 00 10) and orig
criteria for customers. Given the apparent marginal
inating in the People’s Republic of the China.
impact of the product under review on the costs of
downstream products, it was concluded that measures
would not adversely impact the user industry.
2. The
rate
of
duty
applicable
to
the,
net
free-at-Union-
frontier price, before duty, of the products described in
paragraph 1, and manufactured by the companies listed below
4. Interest of importers
shall be as follows:

(104) Three importers contacted the Commission at the
beginning of the investigation, but they were not
Company
Anti-Dumping
TARIC
considered as being interested parties since they had
Duty
Additional Code
not imported the product concerned from the PRC
Shandong Weldstone Tungsten Industry
17,0 % A754
during the RIP. Given that importers of TE did not
Co., Ltd
show any interest during the investigation, it was
concluded that it would not be clearly against EU
Shaanxi Yuheng Tungsten &
41,0 % A755
interest to maintain measures.
Molybdenum Industrial Co., Ltd
Beijing Advanced Metal Materials Co.,
38,8 % A756
5. Conclusion
Ltd
(105) Given the above, it is concluded that there are no
All other companies 63,5
% A999
compelling reasons against the maintenance of the
current anti-dumping measures.
3. The
application
of
the
individual
duty
rates
specified
for
the companies mentioned in paragraph 2 shall be conditional
G. ANTI-DUMPING MEASURES
upon presentation to the customs authorities of the Member
States of a valid commercial invoice, which shall conform to the
(106) All parties were informed of the essential facts and
requirements set out in the Annex. If no such invoice is pres
considerations on the basis of which it was intended to
ented, the duty rate applicable to ‘all other companies’ shall
recommend that the existing measures be maintained.
apply.
They were also granted a period to submit comments
subsequent to that disclosure. The submissions and
comments were duly taken into consideration where
4. Unless
otherwise
specified,
the
provisions
in
force
warranted.
concerning customs duties shall apply.

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L 150/12
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Official Journal of the European Union
4.6.2013
Article 2
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, 29 May 2013.
For the Council
The President
R. BRUTON
ANNEX
The valid commercial invoice referred to in Article 1(3) of this Regulation must include a declaration signed by an official
of the company, in the following format:
1. The name and function of the official of the company which has issued the commercial invoice.
2. The following declaration ‘I, the undersigned, certify that the [volume] of tungsten electrodes sold for export to the
European Union covered by this invoice was manufactured by (company name and address) (TARIC additional code)
in (country concerned). I declare that the information provided in this invoice is complete and correct.’

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