Regulation 2016/10772 extending AD measures on imports of silicon from China found that the EU industry was no longer suffering material injury caused by imports of dumped and undercutting silicon from China in 2014 and 2015 Q1, but that there is a strong likelihood of recurrence. Indeed, thanks to the effectiveness of the AD and anti-circumvention measures, the EU industry, in particular the Complainants, were able to make investments, particularly in 2015, to improve their situation.
However, the positive effects of these investments have been largely frustrated by the strongly increasing imports from the subject countries, which gained significant EU market share
between 2015 and the Investigation Period (“IP”, 2016 Q3 to 2017 Q2) by selling at dumped and undercutting prices.
The unfair market behavior by imports from the subject countries significantly undermined the EU industry’s recovery process and caused the Complainants’ situation to deteriorate over the period under consideration (2014 to IP).
Imports of silicon from Brazil are subject to EU customs duties of 5.5%, and imports from Bosnia to a 0% duty.
There are two silicon producers in Bosnia, namely BSI and R-S Silicon. Both companies are part of the Metalleghe Group. To the Complainants’ best knowledge, there is only one domestic user of (aluminum grade) silicon, namely Aluminij d.d. Mostar, who however sources predominantly from Chinese suppliers. Accordingly, BSI appears to be selling its entire annual production of approximately 18-20,000 MT on the EU market. The total production (capacity) in Bosnia is approximately 33,000 MT.
In 2016, production in Brazil was approximately 200,000 MT. However, the annual domestic consumption has traditionally been very low, at only approximately 18,000 MT. Brazilian producers have therefore traditionally been heavily export-oriented.
Since 2016, the subject countries heavily increased export volumes to the EU, Brazil by 38% and Bosnia by 61%.
Furthermore, the US has recently imposed provisional AD measures on imports of silicon from Australia, Brazil, Kazakhstan and Norway. With no further possibilities to dump silicon on the US market, it is reasonable to anticipate that Brazilian producers will refocus their exports even more to the EU. There is therefore also a threat of further injury from imports from Brazil.