EU Imposes Anti-Dumping Duties on Chinese Titanium Dioxide Final Ruling

On January 9, the European Commission announced its final ruling regarding the anti-dumping investigation into titanium dioxide from China, officially imposing anti-dumping duties on these products.

Overview of the Duty Implementation

The China Coatings Industry Association's Titanium Dioxide Branch is closely monitoring the situation, having collaborated with law firms to understand the concerns and suggestions from affected companies. They are actively communicating with relevant national departments and plan to appeal against the EU's anti-dumping measures as needed.

Notably, the duties apply to various titanium dioxide products, including those used for non-white coatings, food-grade applications, sunscreen, and high-purity titanium dioxide, while excluding titanium dioxide used in inks.

Changes in Duty Assessment include:

• The duty structure has shifted from a percentage-based to a per-kilogram basis:
• Longbai Group: €0.74/kg
• Anhui Jinxing Titanium Group: €0.25/kg
• Other responding companies: €0.64/kg
• Non-responding companies: €0.74/kg

The temporary anti-dumping duties started from the date of the preliminary ruling, with no retroactive application.

Timeline of Events

The investigation was initiated on November 13, 2023, with support from the China Petroleum and Chemical Industry Federation. By July 11, 2024, the preliminary ruling established varying duty rates based on dumping margins:

• Longbai Group: 39.7%
• Anhui Jinxing Titanium Group: 14.4%
• Other responding companies: 35%
• Non-responding companies: 39.7%

After further legal efforts, the EU published its final ruling on November 1, 2024, with adjusted duty rates:

• Longbai Group: 32.3%
• Anhui Jinxing Titanium Group: 11.4%
• Other responding companies: 28.4%
• Non-responding companies: 32.3%

Industry Response and Adaptation

Ni Xiaoguang, Chairman of Jiangsu Fanhua Chemical Technology Co., Ltd., noted that despite facing high tariffs, many EU clients continue to place orders, reflecting confidence in their high-end titanium dioxide products.

Yang Xun, an industry analyst, indicated that while the ruling may negatively impact the short-term dynamics of the titanium dioxide sector in China, the industry retains an overall competitive edge through quality, supply, and service.

Xie Hua, Deputy General Manager of Ningbo Xinfuhua Titanium Dioxide Co., Ltd., emphasized the need for Chinese companies to focus on high-end product development and cost reduction in the face of rising trade barriers.

Future Implications

Sun Zheyuan, Deputy Secretary-General of the National Chemical Productivity Promotion Center, described the EU's ruling as a double-edged sword. It may lead to reduced market share for Chinese titanium dioxide exports, while also accelerating industry consolidation and transformation.

He highlighted that the EU is a significant export market for Chinese titanium dioxide, and the implementation of anti-dumping duties could severely weaken price competitiveness, resulting in decreased exports. The industry may face heightened competition and a potential exit of less competitive players, while stronger companies may capture greater market shares.

The anti-dumping duties imposed by the EU represent a significant challenge for the Chinese titanium dioxide sector. Firms must innovate and enhance product value to maintain competitiveness and adapt to the evolving market landscape.