EU 20-year anti-dumping ends, grinding wheel lighters may become the new favorite of the industry
The European Commission recently decided to cancel the special anti-dumping tariffs on Chinese lighters from December 12.
This good news naturally cheered up many Ningbo lighter companies.
However, for the entire industry, the grinding wheel lighters that have been exempted from taxation only account for a very small number of current production, and compared with the plight of the entire industry, it is difficult to have an immediate positive effect.
However, the industry believes that grinding wheel lighters have great potential in the EU market, and this may be an opportunity for the lighter industry to get out of trouble.
After 20 years of anti-dumping by the EU, this time it has finally been completely broken
The good news came on November 27: the European Commission decided on the same day that it would cancel the special anti-dumping tariffs on imported Chinese lighters from December 12 this year.
This "special tariff" has been between Chinese lighter companies and the EU market for 20 years.
As early as 1991, the EU began to impose anti-dumping duties on lighters exported from China on the grounds of "preventing low-end and non-safety standard lighters from entering the EU market".
From 2002 to 2003, lighter manufacturers in Ningbo, Wenzhou and other places responded to the EU anti-dumping case. In the end, the EU granted market qualifications to some companies and withdrew the lawsuit, but the anti-dumping duties were not completely cancelled. Among them, anti-dumping duties have been imposed on grinding wheel lighters in recent years.
This time, the EU cancelled the anti-dumping duties on the last variety - grinding wheel lighters.
Yesterday, Sun Ningwei, deputy general manager of "Xinhai Electronics", a leading company in Ningbo's lighter industry, told reporters that they were not really relieved until the news came on November 27, because until this moment, the EU's anti-dumping of Chinese lighter products was completely broken.
Anti-dumping duties exceed ex-factory prices, and many companies have given up grinding wheel lighters
Ningbo is known as the "Chinese Lighter Capital" and is the largest plastic lighter production and export base in China and even the world.
In recent years, Ningbo's lighter industry, with Cixi and Yuyao as the gathering places, has developed very rapidly, and the EU market is the most important overseas market for Ningbo lighters.
The head of a well-known lighter manufacturer in Ningbo told reporters that it was very difficult for the company to move towards the EU market due to the constraints of anti-dumping duties.
Although companies in Ningbo, Wenzhou and other places have achieved phased victories in fighting against EU anti-dumping after 2003, the anti-dumping duties imposed on grinding wheel lighters have always been a thorn in the side.
Previously, the EU market implemented an anti-dumping duty rate of 0.065 euros per piece for grinding wheel lighters from China.
According to the current market environment, the ex-factory price of a grinding wheel lighter is less than 0.065 euros per lighter.
"The tax collected for selling a lighter is higher than the ex-factory price. Who would do this?" said Zhuang, deputy secretary-general of Ningbo Lighter Industry Association. Ningbo currently has about 60 to 70 lighter manufacturers, and few companies are involved in the field of grinding wheel lighters. At present, major companies in the industry have turned to metal lighters and electronic lighters.
This is more obvious in the product structure of exports.
"Xinhai Electronics" is a leading company in Ningbo and even in China's lighter industry. Among its exported products, metal lighters and electronic lighters that are not subject to anti-dumping duties by the European Union account for about 30%, while grinding wheel lighters that have been taxed account for only 5%, and are basically sold to the Asian market.
European consumers are used to using grinding wheel lighters, and the market potential is huge
Once upon a time, in Ningbo, Wenzhou and other places, the lighter industry has always been a local pillar industry, but in recent years it has been trapped internally and externally and is known as the "most sunset industry".
The EU's complete cancellation of anti-dumping duties this time is seen by many local lighter companies in Ningbo as an opportunity to get out of trouble.
Sun Ningwei, deputy general manager of "Xinhai Electronics", said that the traditional lighter process of grinding wheel still has a strong vitality, especially consumers in the EU market have the habit of using grinding wheel lighters, which is a potential high-quality market, "this may be an opportunity".
However, Deputy Secretary-General Zhuang of Ningbo Lighter Industry Association reminded that "it is unrealistic to have an immediate effect".
Deputy Secretary-General Zhuang said that compared with electronic or metal lighters, grinding wheel lighters are low-end products, and there are few companies that are still producing grinding wheel lighters.
Deputy Secretary-General Zhuang also believes that the current crisis of Ningbo's lighter industry is far more than anti-dumping. The sharp rise in labor and raw material costs, changes in the foreign exchange market, various technical barriers in the international market, etc. have all led to further increased survival pressure on Ningbo's lighter industry in recent years.
He suggested that ultimately it depends on enterprises to practice their internal skills, improve their corporate cultivation, and seek transformation and development.