Up To 34.9%! EU Imposes Temporary Anti-dumping Duty On Decorative Paper From China

The preliminary results of the EU's anti-dumping investigation into China's decorative paper industry have been released, attracting industry attention.
According to a statement released by the European Commission, a preliminary positive anti-dumping ruling has been made on decorative paper originating in China, imposing temporary anti-dumping duties ranging from 31.0% to 34.9% on the companies involved. Among them, Hangzhou Huawang New Material Technology Co., Ltd. (referred to as "Huawang Technology") has a duty of 34.9%, Zhejiang Xiawang Paper Industry Co., Ltd. has a duty of 31.0%, other cooperative enterprises including Sunshine Prince (Shouguang) Special Paper Co., Ltd., Zibo Oumu Special Paper Co., Ltd., and Felix Scheler New Materials Co., Ltd. have a duty of 33.6%, and other Chinese producers/exporters have a duty of 34.9%.
As early as June 14, 2024, the European Commission initiated an anti-dumping investigation into decorative paper originating in China. The anti-dumping investigation period of the case is from April 1, 2023 to March 31, 2024, and the injury investigation period is from January 1, 2020 to the end of the anti-dumping investigation period.
Previously, Huawang Technology had publicly stated that it believed the impact of the EU's anti-dumping investigation on China's decorative paper industry was limited, as sales in the EU region accounted for less than 5% of the company's overall decorative paper sales, which was relatively low. The company adopted a high-quality, same price competition strategy for sales in this region. For the core competitiveness of the company's products exported overseas, the company has taken continuous measures such as deepening technological innovation and strengthening product quality to enhance product performance and quality, and meet customers' demands for product performance, quality, and application.
According to the data, Huawang Technology is one of the few decorative paper production enterprises in China that not only masters core technology but also has the ability to produce multiple varieties and customized products, ranking among the top in the global high-end decorative paper industry. In the first three quarters of last year, Huawang Technology's revenue was 2.851 billion yuan, a year-on-year decrease of 4.45%, and its net profit was 409 million yuan, a year-on-year increase of 2.94%.
It is understood that decorative base paper is an industrial specialty paper mainly used for veneer decoration of artificial boards, and downstream industries mainly include artificial boards, furniture, flooring, etc. It has undergone special processing techniques and has excellent decorative and functional properties, such as wear resistance, heat resistance, flame retardancy, etc. According to relevant statistical reports, the market size of decorative paper in China is expected to reach 14.7 billion yuan by 2025.
In recent years, China's decorative base paper has accelerated its expansion in the international market due to its high stability in quality. In the European market, Chinese manufacturers have achieved international leading levels in core product indicators through unremitting learning and practice; In markets such as Southeast Asia, economic development is showing a good trend, and residents' living standards are constantly improving. The demand for housing improvement and decoration will also continue to expand.
It is worth noting that the decorative paper industry is not only facing the pressure of "double reverse" overseas, but also facing intensified competition domestically.
Recently, another decorative paper production company, Qifeng New Materials, released a performance forecast, with a net profit expected to be between 100 million and 140 million yuan in 2024, a year-on-year decrease of 40.87% to 57.77%; The estimated net profit after deducting non recurring expenses is between 80 million and 100 million yuan, a year-on-year decrease of 54.04% to 63.23%. The company stated that during the reporting period, new production capacity was concentrated in the industry and market competition intensified, resulting in adjustments to product sales prices.