- Chinese exporters face European duty for five more years
- Import levy of 64.3 percent applies to molybdenum wire
Austria-based Plansee SE won a five-year renewal of a European Union tariff on automotive-industry wire from China.
The EU reimposed the 64.3 percent duty on Chinese molybdenum wire, citing the threat of a “significant” increase in shipments to the bloc as a result of large spare capacity in China. The EU introduced the levy in 2010 to punish Chinese exporters such as Jinduicheng Molybdenum Co. for allegedly having sold molybdenum wire in Europe below cost, a practice known as dumping.
“There is a strong likelihood of a continuation of dumping should the current anti-dumping measures be allowed to lapse,” the European Commission, the 28-nation EU’s executive arm in Brussels, said on Wednesday in the Official Journal. The five-year renewal will take effect on Thursday.
The decision is the outcome of a review that prevented the anti-dumping duty from expiring as originally scheduled in June 2015. Plansee, which the commission said accounts for 90 percent of the EU’s production of molybdenum wire, had requested the probe.
Automotive companies use molybdenum wire for coating parts. The EU is the world’s largest market for molybdenum wire because demand for it is linked largely to the production of manual gear boxes still used by Europe’s car and truck industry, according to the commission. It said consumption of molybdenum wire in the U.S, Japan, South Korea and South America is limited because those automotive markets focus mainly on automatic gear boxes.
Since 2010, the EU has twice widened the scope of the anti-dumping duty against China to cover slightly modified versions of molybdenum wire and has extended the measure to imports of the product from Malaysia after concluding that Chinese exporters sought to dodge the levy. Wednesday’s decision to renew the trade protection keeps those anti-circumvention measures in place.