EU imposes up to 48% provisional anti-dumping duty on Chinese aluminum profiles! How should aluminum industry deal with it? 2020-10-15

China is one of the countries with the most abundant varieties of aluminum processing materials in the world, with about 300 kinds of alloys and 1500 varieties. After years of development, China has emerged a large number of international advanced products and national famous brand products to the world. However, in the process of the development and growth of China's aluminum industry, some obstacles can not be avoided.

For example, the recent announcement by the European Commission that "a temporary anti-dumping duty of up to 48% will be imposed on aluminum profile products from China" is a typical case of excessive trade protection, which violates the rules of free competition in the market. It will not only damage the interests of Chinese export enterprises, but also the interests of European downstream users and related industries.

It is understood that the provisional anti-dumping duty is expected to be imposed on October 15. At that time, importers must pay anti-dumping and countervailing deposit before they can continue to import. The imposition of provisional anti-dumping duties on Chinese enterprises is naturally welcomed by European aluminum producers. According to the head of the European Aluminum Association, these anti-dumping duties are crucial to the survival of the European aluminum value chain, which is crucial for Europe's transition to a digital and green economy.

As a matter of fact, the dumping accusations against China's aluminum extrusion products put forward by a small number of EU enterprises are essentially due to internal products, management, service and other factors, and the consequences of poor production and operation are transferred to Chinese export enterprises.

Data show that the cause of the incident was a complaint filed by seven industrial groups of manufacturers represented by Euroaluminum on January 3 this year. These producers account for more than 25% of the EU's total production of aluminium profiles, and members include Norsk Hydro, Rio Tinto and Alcoa.

According to the European Aluminum Association, the export of rolled aluminum products from China to the European Union (the type under investigation) increased from 171000 tons in 2016 to 330000 tons in 2019. In 2019, the market share of imports from China will reach more than 12%, double that of four years ago. China's aluminum production subsidies weaken European production, distort the global market, depress the global aluminum price, threaten the competitiveness of European aluminum industry, and weaken the ambition of European aluminum industry for sustainable development.

The accusation was taken seriously by the European Commission. In February, the European Commission launched an investigation into whether China dumped aluminum profiles. The investigation will be completed in April 2021. In addition, the European Union has recently launched an anti-dumping investigation on some aluminum rolling products originating in China after the complaint filed by the European Aluminum Association.

Since August 25, as part of the ongoing anti-dumping investigation, the EU has instructed customs authorities to take appropriate steps to register aluminum profile products from China. In order to trace and apply anti-dumping measures to these imported products.

Products to be registered include bars, profiles (solid and hollow), and pipes. These products are not processed and can be used in the production of structural parts, such as cut to length, drilling, bending and thread. Extruded aluminum products include aluminum, alloy or non alloy with aluminum content not more than 99.3%. Products excluded from the products involved are: aluminum tube accessories (e.g. by welding or fasteners; welded pipes; products in packaging kits, which contain parts required for assembly into final products without further finishing or manufacturing ("finished product kits").

It can be seen that the scope of China's aluminum products is relatively wide, including almost all aluminum extrusion materials, and the number of cases involved is relatively large. The possible impact and chain reaction on China's aluminum extrusion industry and market cannot be underestimated.

The director general of the European Aluminum Association highly praised the measure and urged the EU to take effective anti-dumping measures as soon as possible. In order to protect the European aluminum industry from the destructive impact of unfair pricing and ensure the survival of the European aluminum industry. "Ensuring the survival of the European aluminum value chain is essential for low-carbon measures including renewable energy, batteries, power systems, resource-saving packaging, energy-efficient buildings and cleaner production mechanisms." The director general of the European Aluminum Association said.

According to the data, the United States, Canada, Australia and Vietnam have already imposed anti-dumping duties on China's aluminum extrusions. The EU is an important market that has not formally imposed anti-dumping duties on such products in China.

According to the data of China Customs, in 2019, China's export volume of aluminum profiles is 1.046 million tons, of which the export volume to 27 countries of the European Union is 137000 tons, surpassing 124000 tons of Vietnam. It is China's largest aluminum profile export economy. Under the influence of the epidemic situation this year, the export volume of aluminum profiles from January to July was 469800 tons, a year-on-year decrease of 22.84%, of which the export volume to 27 countries of the European Union was 66700 tons. With the implementation of the EU's provisional anti-dumping duty, the export situation of China's aluminum profile has recovered slightly and is facing challenges again.

However, there is no need to panic too much. There are more than 180 countries exporting aluminum profiles in China. After the implementation of anti-dumping duties by the European Union, some domestic profile enterprises give up their exports and turn to China, while others are exploring other overseas markets. Experts in the industry pointed out that the EU provisional anti-dumping duty will have a greater impact on the enterprises themselves, and the impact on the whole domestic aluminum supply is limited.

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