EU Ceramic Industry Brief

2013-01-31

EU ceramic table- and kitchenware industry supports the provisional duties on ceramic table- and kitchenware from China
The investigation into dumped imports of table- and kitchenware On 16 February 2012, the European Commission initiated an anti-dumping proceeding concerning imports of ceramic table- and kitchenware originating in the People's Republic of China (OJ C 44, 16.2.2012, p. 22). After the European Commission carried out the necessary investigation, it concluded that the imposition of provisional duties was justified under WTO rules and the EU basic anti-dumping Regulation. Accordingly, the Commission demonstrated that Chinese exports of ceramic table- and kitchenware are dumped and cause material injury to EU producers and that the adoption of antidumping duties is in the interest of the EU. As a remedy, the European Commission imposed provisional duties on ceramic tableware and kitchenware from China on 15 November 2012 (OJ L 318, 15.11.2012, p.28). support this case. This is well above the minimum standing requirement under WTO and the EU Basic Regulation (25%). In fact, manufacturing of table- and kitchenware ceramics is present in most of EU Member States.

More than 50% of the EU ceramic table- and kitchenware industry actively

As explained below, the anti-dumping duties will re-establish a fair competition

and ensure a sustainable future for the European ceramic table- and kitchenware market. Several countries (e.g. Colombia, Indonesia, Egypt and Argentina) have already instituted anti-dumping measures against Chinese imports.

Facts & figures on EU production Ceramic table- and kitchenware industry today More than 25,000 direct employees with a high proportion of special skilled female workforce. Many more jobs in services and mining, which depend on ceramics factories. High number of SMEs (representing around 50% of the EU production). Present in most European countries with strong cultural traditions. Caters to all tastes and is active in all sectors, be it table- and kitchenware for households, for the hospitality sector or for barware sector, be it cheap or expensive products. Manufactures all types or ceramic table- and kitchenware of porcelain, earthenor stoneware, be it onglaze or underglaze. Innovative and strives for highest standards on food safety, and the reduction of waste, energy and pollution. More than 10,000 jobs lost over the last 5 years i.e. 30% job loss. More than 110 EU factories have closed over the last 5 years.
Rue de la Montagne 17 1000 Brussels Tel. +32.2.808.38.80 - Fax +32.2.511.51.74 E-Mail: sec@cerameunie.eu www.cerameunie.eu

Recent history

FEPF - Member of CERAME-UNIE aisbl

The profitability of the EU industry deteriorated during the last 4 years and never reached a satisfactory profit level. SMEs were suffering the most, as they were loss-making since 2010. Sales volume of the EU industry decreased by 20 % and its market share dropped from 23 % in 2008 to 20.9 % in 2011. While 2011 was relatively stable, the first semester of 2012 has been very tough with several further bankruptcies and job losses in the EU.

Facts & figures on imports from China Chinese exports Today more than 65% of products sold in the EU are manufactured in China, up from 22% in 2004. Chinese export mix has evolved and covers more and more market segments, e.g. in house-, hotel- and barware. This change in product mix is reflected both in the increase of the average price of Chinese exports and in the nature of EU factory closures. More than 70% of total world export volume now originates in China. Average export prices from China are some 70% lower than average 2011 prices of all other countries exporting to the EU. Certain countries (e.g. Colombia, Indonesia, Egypt and Argentina) have instituted anti-dumping measures against Chinese imports. A very limited number of EU jobs are dependent on dumped imports, as ceramic table- and kitchenware usually represents a very small share of the large importers businesses. Importers generally work with high flexible margins and set EU consumer market sales prices according to what the seller feels the market can take. Consumer prices are rarely directly and proportionally linked to import prices. Today it is mainly the importers dictating product and price to the Chinese manufacturers, so significant margins remain in Europe. However growing dependency on Chinese imports may reverse this situation.

EU importers

Graphic illustration:

EU interest The EU must maintain its foothold as a significant manufacturer and keep the balance as an interdependent partner - importing and exporting - and not become a dependent consumer. Consumers will not be hurt by price increases. Further closures of European factories and mines that supply European factories will not only cause additional job losses and erosion of Europes technological and skill base, but will tip Europe into unhealthy dependency on China in this sector. The Chinese will increasingly be able to dictate the terms of sale as European importers will have few alternative sources. This will result in loss of margins for EU importers and inflation for EU consumers. In some other sectors where China has a dominant position, China has caused major disruptions on world markets with relatively simple moves, such as executive orders to producer organisations or imposition of export taxes or quotas. Dependence on China is not in the EU Interest. Averting a dominant position on the part of China and preventing further erosion of the EU ceramic table- and kitchenware industry is in the interest of both EU producers and EU importers and distributors who need choice of suppliers and negotiating power. Anti-dumping duties will only level the playing field by remedying unfair trade practices. They will not create any shortage on the EU market. Furthermore, the EU industry has capacity to meet demand. For the immediate future, an EU industry outlook of unfair price competition and further loss in market share is not conducive to investment in Europe. Yet investment is crucial to the fulfilment of EU social and environmental policy objectives. The EU industry is committed to investing in new technology aiming for low carbon footprint, in-process material recycling, low use of heavy metals and many more environment and consumer friendly measures. Passiveness is no longer an option in the fight for a level playing field, which enables the survival of a competitive EU ceramic industry.