The EEC decided not to cancel the anti-dumping duty on cassette bearings from China

The EEC has completed an anti-dumping investigation into Chinese cassette bearings for railway cars and has concluded that the abolition of the anti-dumping duty of 41.5% is inappropriate. The Commission considered that the crisis in the production of cassette bearings in the EAEU has been overcome and demand can be satisfied through its own production, which in 2024 will grow by another 15–25% and exceed demand. Bearing manufacturers say this has already happened.

The EEC has completed a repeated anti-dumping investigation into Chinese bearings, the commission reported. Now for rolling bearings from China, with the exception of needle bearings, there is an anti-dumping duty: it is 31.3% of the customs value for Wuxi Rolling Bearings LLC and 41.5% for other manufacturers. This measure was introduced back in 2007 and has been extended several times; it was due to expire on August 20.

But the situation on the Russian market has changed; at the beginning of 2022, all enterprises producing cassette bearings used in the production of bogies for innovative cars left it. All three manufacturers – EPK-Brenco Bearing Company LLC, SKF LLC and Timken UWC LLC – worked in partnership with Amsted Rail, SKF and Timken, respectively (all from now unfriendly countries). After the departure of foreign partners, the railway industry began to experience an acute shortage of cassette bearings. According to the EEC, in April 2022 their production decreased by 65–75% compared to January. The issue of replacement has become acute, primarily through supplies from China. Then a second anti-dumping investigation was launched, which could have resulted in the abolition of the duty, and during the investigation its effect was extended until April 20, 2024 (see Kommersant, July 21).

However, the investigation showed that “there is no rationale for revising the anti-dumping measure due to changed circumstances,” it follows from the text. The Commission notes that the production volume of cassette bearings in the EAEU in May-June 2023 exceeded the pre-crisis level in January-February 2022. The main manufacturers – EPK-Brenko and TEK-COM – this year overcame difficulties in providing components, which they now purchase in the EAEU and in other countries. Back in 2022, supplies of cassette bearings from China began, and “taking into account the fulfillment by Chinese manufacturers of cassette bearings of the conditions for access to the EAEU market, as well as the continued high volumes of supplies, according to the first half of 2023, it should be assumed that there is a possibility of continuation and growth of dumping imports from China upon termination of the anti-dumping measure.” In the second quarter, imports of bearings from China to the customs territory of the EAEU amounted to 87–120 thousand units.

By the end of 2023, the production volume of cassette bearings in the EAEU should more than double by 2022 and by 15–25% by 2021. In 2024, further production growth is expected at 15–25% compared to 2023, which will exceed forecast demand.

TEK-KOM told Kommersant that they certainly agree with the conclusions of the EEC. “Russian manufacturers can and, moreover, satisfy demand,” the company added, specifying that they work in three shifts. “Today there is a surplus of bearings on the market, since local production volumes exceed current demand.”

According to the managing partner of Rollingstock Agency, Alexander Polikarpov, there is no need to cancel the anti-dumping duty on Chinese bearings. “There is no shortage of cassette bearings in the network; in general, production has already been established in Russia,” he notes. “Imports from friendly countries made it possible to smooth out the deficit in 2022 and early 2023. Over the nine months of 2023, 315.9 thousand cassette bearings were supplied, of which 82% were Russian-made.” At the same time, when produced in Russia today, components from friendly countries are used, the expert adds, but manufacturers plan to complete the localization of the component base in the near future.

Natalya Skorlygina