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Japan: Initiation of an anti-dumping investigation of graphite electrodes originating from the Poeple's Republic of China

Date of publication: April 26, 2024
On April 24, 2024, The Ministry of Economy, Trade, and Industry (METI) and The Ministry of Finance (MOF) of Japan decided to initiate a new anti-dumping investigation of graphite electrodes originating in the People’s Republic of China No.119-2024 after receiving the application submitted by SEC Carbon Ltd., Tokai Carbon Co., Ltd., and Nippon Carbon Co., Ltd., on February 26, 2024, requesting the imposition of an anti-dumping duty on graphite electrodes imported from China (excluding Hong Kong and Macao). The METI and the MOF examined the application in accordance with the WTO Agreements and related domestic laws and regulations. The examination showed that the application had sufficient evidence to justify the initiation of an investigation. Graphite electrodes, of poles, mainly used in electric arc furnaces to melt steel scrap with an electric current.

Product subject to the investigation

Name:
 Graphite Electrodes.
Description and model:
 Graphite electrodes classified under subheading 8545.11 of the Harmonized Commodity Description and Coding System.
Characteristics:
 Of poles, mainly used in electric arc furnaces to melt steel scrap with an electric current.

What the application claims?

  1. There is a dumping margin of 37.70% on the Chinese graphite electrodes, calculated based on the difference between the normal value and the export price to Japan from October 1, 2022, to September 30, 2023.
  2. The domestic industry in Japan has suffered material injury due to the increased import volume and market share of the Chinese product from January 2018 to September 2023, leading to decreased sales and prices of domestic graphite electrodes. The injury includes reduced business profits and an inability to adjust sales prices in response to rising raw material costs. There is also a concern that without anti-dumping measures, the situation will worsen due to increasing production capacity in China and a likely increase in imports to Japan, where demand is growing.
  3. The applicants, whose collective output represents over 50% of Japan's domestic production, are requesting anti-dumping duties to be placed on graphite electrodes from China to prevent further injury to the domestic industry.

Timeline of the investigation

The investigation is to be concluded within one year, in principle.
February 26, 2024:
 Application for an anti-dumping duty investigation.
April 24, 2024:
 Initiation of the investigation; press release and issued No. 119-2024July 24, 2024: Presentation of evidence, etc.
August 26, 2024:
 Request of meeting with parties with adverse interests and Presentation of views.
August 26, 2024:
 Provision of information for industrial users.
Until April 2025:
 Inspection of the evidence and Date of the Notice of the Ministry of Finance published in the Official Gazette as provided for in Article 16 of the Cabinet Order.

What is next?

The parties concerned such as foreign suppliers (China), producers of the product subject to the investigation (China), importers, domestic producers, and industrial users can access the Questionnaires and required documentation can be found here in Japanese.For clarifications, entities can contact the METI and the MOF of Japan.
Contact information of the procedures regarding the anti-dumping duty investigation
Ministry of Finance (MOF):
Office of Trade Remedy Affairs, Tariff Policy and Legal Division, Customs and Tariff Bureau
Address: 3-1-1 Kasumigaseki, Chiyoda-ku, Tokyo, 100-8940, Japan
Phone: +81-(0)3-3581-8236
Ministry of Economy, Trade and Industry (METI):
Office for Trade Remedy Investigations, Trade Control Department, Trade and Economic Cooperation Bureau
Address: 1-3-1 Kasumigaseki, Chiyoda-ku, Tokyo, 100-8901, Japan
Phone: +81-(0)3-3501-3462
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