The European Union has imposed anti-dumping duties on titanium dioxide (TiO2) imports from China, effective January 2025. The decision follows an investigation by the European Commission, which found that the influx of underpriced Chinese TiO2 caused significant harm to EU producers. These measures aim to protect the Union’s industry, which has been struggling to compete with the unfairly low-priced imports.
Reason for the Anti-Dumping Measures
The European Commission's investigation, launched in response to a complaint from the EU's TiO2 industry, revealed that Chinese exporters were selling TiO2 at prices significantly below fair market value. This practice caused material injury to the Union’s producers, who suffered from declining profits and reduced investment capacity between 2020 and 2022.
Table 11 of the investigation findings highlighted critical indicators such as falling profitability (from 7.9% in 2020 to -11.7% during the investigation period) and a dramatic drop in cash flow, which reached -€42.3 million in the same timeframe. These factors underscored the urgency of imposing corrective measures to stabilise the EU market.
Details of the Duties
The duties target several Chinese exporters of titanium dioxide, with specific tariffs applied based on the level of underpricing and cooperation in the investigation. Companies listed in the annex of the official decision, such as Guangxi Bluestar Dahua Chemical Co. and Shandong Dawn Titanium Industry Co., now face tailored additional duties under TARIC codes.
Impact on EU and Chinese Industries
The European Commission noted that these duties would allow EU producers to recover lost profitability and maintain fair competition. However, Chinese exporters may experience reduced access to the EU market, prompting concerns over trade tensions between the two regions.
Reaction from Stakeholders
The China Nonferrous Metals Industry Association (CNMIA) argued against the decision, claiming that the Union’s industry was not experiencing material injury and attributing the challenges to broader economic conditions. Despite these objections, the Commission upheld its findings and confirmed the necessity of the duties.
Future Implications
This move is expected to bolster the EU TiO2 industry, encouraging investment and innovation. Meanwhile, Chinese exporters may seek alternative markets or challenge the EU’s decision through the World Trade Organization (WTO).
