TMI BlogAnti-dumping investigation concerning imports of magnesium from China PR — Preliminary findingsX X X X Extracts X X X X X X X X Extracts X X X X ..... eipt of dumping allegation before proceeding to initiate the investigations in accordance with sub-rule 5(5) of the Rules ; iii. The Authority issued a public notice dated 31st July, 1997 published in the Gazette of India, Extraordinary, initiating anti-dumping investigations concerning imports of magnesium, classified under custom sub-headings 8104.11 and 8104.19 of Schedule I of the Customs Tariff Act, 1975 , originating in or exported from China PR; iv. The Authority forwarded a copy of the public notice to the known exporters (whose details were made available by the petitioner) and industry associations and gave them an opportunity to make their views known in writing in accordance with the Rule 6(2) ; v. The Authority forwarded a copy of the public notice to the known importers of magnesium in India and advised them to make their views known in writing within forty days from the date of the letter; vi. Request was made to the Central Board of Excise and Customs (CBEC) to arrange details of imports of magnesium for the past three years, including the period of investigations. No information was however, received from CBEC; vii. The Authority provided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The petitioner has stated that a major part of dumping is originating from small producers of magnesium in China PR. Chinese manufactures are offering the metal at throw away prices in order to capture the Indian Market; Anti-dumping duties have been imposed by USA on Chinese magnesium in view of dumping by the Chinese exporters; Exports of Chinese magnesium to Europe are at a dumped price, as a result of which 150-200 smaller products of magnesium have gone out of business; As the markets for export of Chinese magnesium is getting blocked all over the world, India has become a potential market for dumping of Chinese magnesium; The normal value of magnesium in China is based on constructed cost of production; (ii) On injury : The petitioner has suffered injury as seen by the following : Distress sale by the petitioner at lower prices, resulting in non-recovery of depreciation and interest costs; The petitioner has not been able to earn any return on capital; Sales of the petitioner has drastically declined; Though the consumption of magnesium in India has been growing over the years, production of the petitioner has remained stagnant in spite of incre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ricing, distribution and marketing and tariff classification of the goods in order to establish whether the magnesium produced by the domestic industry is a like article to the magnesium exported from China PR. The petitioner contended that it uses Pidgeon process for making magnesium, whereas Chinese producers uses electrolyte as well as Pidgeon process. The difference in the production process, however, does not result in difference in the end product and the cost of production is also nearly the same regardless of the manufacturing process. The petitioner has claimed that the goods exported from China PR and goods produced by the petitioner are being consumed interchangeably and have characteristics closely resembling each other. There is no argument contrary to the claim of the petitioner on this account. The goods produced by the domestic industry are a like article to the goods exported from China PR within the meaning of the Rule 2(d) . G. Domestic industry 9. The petition has been filed by M/s. Southern Magnesium and Chemicals Limited, Deccan Chambers, 5th Floor, 6-3-666/B, Somajiguda, Hyderabad-500082. There is one more producer of magnesium in India, M/s. Tamilnadu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ). The Authority, therefore, proceeded on the basis of Rule 6(8) , i.e., best information available, for determination of normal value of magnesium in China PR. 13. The normal value was determined on the basis of cost of production constructed for China PR at the time of initiation. The Authority has considered the same basis of determination of normal value in these findings. 14. Export price : None of the exporters from China PR have furnished information requested by the Authority. The information furnished by the importers is insufficient to arrive at a fair average export price of magnesium from China PR for the investigations period. The export price has, therefore, been worked out on the basis of information published by the Directorate General of Commercial Intelligence and Statistics (DGCI S). Import of magnesium under custom sub-headings 8104.11.00 and 8104.19.00 have been considered for working out the average export price in the investigations period. 15. The petitioner had furnished export price on the basis of Metals and Minerals Review also. However, since the information compiled by the DGCI S is available exclusively for the product under consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ude and margin of dumping, etc. in accordance with Annexure-II (iv) of the rules supra. (a) Volume and market share of dumped imports 20. Imports of magnesium from China PR increased from 441 MT in 1994-95 to 992 MT in 1995-96 and were 766 MT in the investigation period (1021 MT on annualised basis), resulting in sharp increase in imports in absolute terms Share of China PR in total imports increased sharply from 28.42% (1994-95) to 68.25% (investigation period). Market share of China PR in total demand in India also increased from 24.41% (1994-95) to 57.9% (investigation period). (b) Export price from China 21. CIF export price of magnesium from China PR declined from ₹ 136/- per kg. (1994-95) to ₹ 124/- per kg in Apr., 1996 and averaged ₹ 93.73 per kg. in the investigation period. (c) Production and capacity utilisation 22. The production of the petitioner increased from 243 MT (1993-94) to 268 MT (1994-95), 277.35 MT (1995-96) and 205 MT in the investigation period (307 MT on annualised basis). The capacity utilisation of the petitioner declined from 44.6% in 1994-95 to 36.41% in the investigation period. (d) Sale in absolute terms 23. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the material injury to the domestic industry has been caused by the imports from the subject countries, the Authority holds that increase in market share of the imports from China PR resulted in decline in the market share of the petitioner and forced the domestic industry to keep its prices to unremunerative levels and prevented the domestic industry from recovering its production costs. The material injury to the domestic industry was, therefore, caused by the dumped imports from China PR. K. Indian industry s interest other issues 31. The purpose of anti-dumping duties, in general, is to eliminate dumping which is causing injury to the domestic industry and to re-establish a situation of open and fair competition in the Indian market, which is in the general interest of the country. 32. It is recognised that the imposition of anti dumping duties might affect the price levels of the products manufactured using the subject goods and consequently might have some influence on relative competitiveness of these products. However, fair competition on the Indian market will not be reduced by the anti dumping measures, particularly if the levy of the anti-dumping duty is res ..... X X X X Extracts X X X X X X X X Extracts X X X X
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