EU CONFIRMS ANTI-DUMPING DUTIES ON MAGNESIUM OXIDE IMPORTS FROM CHINA.
The European Union has confirmed definitive five-year anti-dumping duties on imports of magnesium oxide from China, at the difference between the normal import price and a minimum import price of euro 112 per tonne. Magnesia or magnesium oxide is an alkaline earth metal oxide. It is used in agriculture for animal feed or as a fertiliser, and for industrial applications in the construction industry for flooring and insulating boards as well as in the pulp, paper, chemicals, pharmaceuticals, flame retardants, abrasives producing industries and environmental protection.
Anti-dumping measures were first imposed in 1993, and have been renewed and amended since then. The European Commissions investigation found that Chinese producers have substantial spare production capacity as they have the largest magnesite ore resource in the world, estimated at 1.3 million tones, although the Chinese domestic consumption is estimated at some 250,000 tonnes and exports of around 550,000 tonnes per year. It was established that total worldwide exports of Chinese magnesium oxide rose by 17%, from 465,900 tonnes in 1999 to 545,600 tonnes in 2003. Export prices to other world markets such as Japan or the US are around 38% below those to the EU, so exporters would the Commission said - have an incentive to increase exports to the EU should the anti-dumping measures be repealed.
The investigation also found that EU consumption of magnesium oxide fell from 423,791 tonnes in 1999 to 398,038 tonnes in 2003. Chinese imports have also fallen, from 140,171 tonnes in 1999 to 126,387 tonnes in 2003. But critically, Chinese prices have fallen by about a quarter, from euro 174/tonne in 1999 to euro 135/tonne in 2003. And the EUs own industry has suffered badly during that time in terms of overall sales, profitability and employment.
In April, the European Commission announced provisional anti-dumping duties of up to 66% on Chinese imports of magnesia bricks used by steelmakers (see Europe Information 2954).
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|Date:||May 27, 2005|
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