24.10.2006 Official Journal of the European Union L 29315 COMMISSION DECISION of 23 October 2006 suspending the definitive anti-dumping duty imposed by Regulation (EC) No 215/2002 on imports of ferro molybdenum originating in the People’s Republic of China (2006/714[EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Council Regulation (EC) No 384/96 of 22 December 1995 on protection against dumped imports from countries not members of the European Community (') (the basic Regulation), and in particular Article 14(4) thereof, After consulting the Advisory Committee, Whereas: A. PROCEDURE The Council, by Regulation (EC) No 215/2002 of 28 January 2002 (%), imposed a definitive anti-dumping duty on imports of ferro molybdenum originating in the People’s Republic of China (PRC), falling under CN code 7202 70 00 (the product concerned). The rate of the anti-dumping duty is 22,5 %. Information on a change of market conditions which occurred after the original investigation period (i.e. from 1 October 1999 to 30 September 2000), and which might justify the suspension of the measures currently in force, in accordance with Article 14(4) of the basic Regulation, was provided to the Commission. Consequently, the Commission examined whether such suspension was warranted. B. GROUNDS Article 14(4) of the basic Regulation provides that, in the Community interest, anti-dumping measures may be suspended on the grounds that market conditions have temporarily changed to an extent that injury would be unlikely to resume as a result of such suspension, provided that the Community industry has been given an opportunity to comment and these comments have been taken into account. Article 14(4) further specifies (") OJ L 56, 6.3.1996, p. 1. Regulation as last amended by Regulation (EC) No 2117/2005 (O] L 340, 23.12.2005, p. 17). () O] L 35, 6.2.2002, p. 1. that the anti-dumping measures concerned may be rein- stated at any time if the reason for suspension is no longer applicable. Eurofer, on behalf of a number of users of the product concerned, has alleged that in the time since the investi- gation period, the market situation has changed. The complainants in the original investigation and other Community producers of the product concerned, repre- sented by Euroalliages, commented on these allegations, and an adversarial exchange of views took place. Since the definitive imposition of the measures in February 2002, Chinese imports have decreased substan- tially. Eurostat statistics point to a drop from ca. 12 KT in 2001 to virtually no imports in the period 1 April 2005-31 March 2006. Euroalliages calculated a higher degree of penetration with imports reaching over 1 KT based on the allegation that certain imports declared as having a Dutch origin were in reality Chinese. In any event, even under this assumption, the very significant drop in import penetration is clear. Regarding imports from other third countries, these have increased from ca. 2,7 KT to 10,7 KT, thus compensating partially the drop in Chinese imports. Consumption has increased by 14 %. Market prices in the Community have increased from ca. EUR 8/kg in the original IP to ca. EUR 80/kg in 2005 and are in the range of ca. EUR 60/kg in 2006. These trends can also be found in other major markets across the world. Out of the factors claimed by the parties the main expla- nation for this price increase seems to be a shortage in roasting capacities, ie., the capacities to transform molybdenum concentrate into molybdenum oxide (which is then converted into ferro molybdenum). This driving factor explains to a large extent the price increases and the demand-supply imbalance that this has generated in the Community market. On the basis of the information presented, it appears that the roasting capacity shortfall will disappear in all likelihood in the course of 2007 as a result of new roasting capacity coming on stream.