Bloomberg News

EU Drops Threat of Tariffs on Graphite Electrodes From China

September 30, 2011

Sept. 30 (Bloomberg) -- The European Union ended the threat of tariffs on graphite electrodes from China after an EU producers’ group withdrew a complaint about price undercutting.

The European Commission closed an investigation into whether Chinese manufacturers of graphite electrodes for electric furnaces sell them in the EU below cost, a practice known as dumping. Steelmakers such as Germany’s ThyssenKrupp AG use such graphite electrodes.

The European Carbon and Graphite Association, which last year filed a dumping complaint on behalf of EU manufacturers, withdrew the allegation on July 8, the European Commission, the 27-nation bloc’s trade authority in Brussels, said today in the Official Journal. The complaint led the commission to open an inquiry in December that could have led the EU to apply anti- dumping duties for five years.

That same month, the EU re-imposed duties against India on graphite electrodes for electric furnaces for another five years. Three European manufacturers including Germany’s SGL Carbon SE had requested the renewal of those levies, which are to counter Indian subsidies to exporters as well as dumping by those companies in Europe.

In its two decisions last December renewing the anti- dumping and anti-subsidy levies against India, the EU said China’s share of the bloc’s market for graphite electrodes for electric furnaces rose to 2.6 percent in the 12 months through June 2009 from 0.2 percent in 2006. Indian exporters including HEG Ltd. and Graphite India Ltd. more than tripled their combined share of the EU market to about 5 percent in the same period, the bloc said at the time.

--Editors: Jennifer M. Freedman, Fergal O’Brien

To contact the reporter on this story: Jonathan Stearns in Brussels at jstearns2@bloomberg.net

To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net


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