Read our blog explaining the effects of the EU anti-dumping duty on graphite electrodes
The European Commission slapped anti-dumping measures on Chinese graphite electrode imports on 7 April 2022. China is, at the time of writing this blog, the world's biggest producer of graphite, but only accounts for half of the world's demand. Countries, including the US, have been imposing anti-dumping duties on graphite electrodes from China for several years to protect their own graphite electrode manufacturers. Now the EU followed.
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These regulations are the result of an investigation that revealed that Chinese graphite electrodes were being offered at considerably reduced costs in the EU. The EU saw a case for dumping, when a non-EU corporation exports a product to the EU at a price lower than the product's typical worth. The typical value is either the product's price as sold in the non-EU company's home market or a price based on the cost of production and profit.
What's the problem in the EU?
EU graphite electrode producers were unable to compete at such pricing and suffered as a result. The EU's actions aim actions to defend EU producers from such unfair trade practices.
The EU had collected adequate proof that imports of graphite electrodes into the EU were being made at dumping prices and causing harm to European business, so it launched an inquiry.
The inquiry into antidumping
The EU initiates an anti-dumping inquiry (proceeding) by issuing a notice in the EU's Official Journal
The investigation looks into:
if there is dumping by producers in the country/countries in question;
whether the European industry in question suffers material harm';
whether there is a causal relationship between dumping and injury; and
whether putting restrictions in place is not in the best interests of Europe.
Only when all four elements are satisfied will the Commission be able to impose anti-dumping actions.
What are graphite electrodes?
Graphite electrodes are used in steel manufacturing and are an important component of the global recycling industry since they are the only product that can transmit electricity and endure the heat required to melt scrap metal. The EU market for graphite electrodes is expanding.
How high is the duty imposed?
Anti-dumping charges on Chinese graphite electrodes have been levied at 25.5 percent to 74.9 percent. Without such regulations, EU makers of graphite electrodes would be unable to fully use their manufacturing capacity, resulting in substantial losses.
At the same time, the EU measures, the EU says, take into account the demands of EU graphite electrode users. Certain varieties of graphite electrodes, which are currently manufactured in very limited numbers in the European Union, are exempt from the restrictions, ensuring their steady supply.
Importers of graphite electrodes from companies in China are now facing anti-dumping duties from foreign companies. The duty is likely to significantly increase the price of their product and may make it difficult for them to compete in the EU market.
Through trade defence mechanisms, the EU stands tough against unfair trade practices. The EU believes that this is required in order to maintain the EU's commitment to open markets and free trade. Free commerce must be equitable. If this is not the case, the EU is on a mission to work to restore a level playing field.
The EU believes that open trade may help businesses thrive and generate employment, but fair competition between domestic and international manufacturers must be maintained.
The EU employs trade defence mechanisms in accordance with World Trade Organization guidelines. To ensure their utilisation, the EU employs these mechanisms and imposes a number of additional requirements on WTO norms.
(FREE) When governments impose anti-dumping or countervailing duties on imports, the importer's costs go up and profits are wiped out overnight.
You have paid anti-dumping duty, and now it turns out it was unjustified? You are due a big refund! If you know how to recover it...here is how
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Our experts can assist your company in understanding how anti-dumping duty cases are filed, how investigations are done, how orders are placed, and how orders are implemented. They also consult with organisations on matters relating to duty order execution and give support in court cases involving anti-dumping duty orders. Our expert blog contains information on the Anti-Dumping Duty Program, such as current and recently finished case studies. Access the ADD section of our Expert Blog here