Commission adopts definitive anti-dumping measures on imports of flat-rolled aluminum products from China
Steel NewsDate: 10-07-2023 by: Ngoc Cam
In October 2021, the European Commission imposed a definitive anti-dumping duty of up to 24.6% on Chinese flat-rolled aluminum products. However, this decision was suspended for 9 months because of specific effects on lines 7060 and 7607 supply. After the review process, the EU lifted this suspension and continued to impose anti-dumping duties on China from July 12, 2022.
1. EU: impose temporary anti-dumping duty on flat-rolled aluminum products imported from China
On August 14, 2020, the European Commission received a European Aluminum complaint about the dumping of flat-rolled aluminum imported from China. The products under investigation include plates and roll with a thickness of 0.2 - 6mm as well as coils and strips with a thickness of 0.03-0.2mm, except for aluminum sheets used in the beverage packaging industry, car cover, or aerospace industry application.
They are grouped under the HS codes 7606.11.10, 7606.11.91, 7606.11.93, 7606.11.99, 7606.12.20, 7606.12.92, 7606.12.93, 7606.12.99, 7606.91.00, 7606.9 and 7607.11.90.
At the conclusion of the investigation, the European Commission implemented anti-dumping measures with duty rates ranging from 19.3 to 46.7% for flat-rolled aluminum products imported from China, effective from 13/04/2021.
Specifically, shaped aluminum of Guangdong Haomei New Materials Co Ltd and Guangdong King Metal Light Alloy Technology Co Ltd will be subject to an anti-dumping duty of 21.2%, while that of Press Metal International Ltd is to a duty of 25%. Other companies that "cooperate" in the investigation are 22.1%, and materials from other companies are on duty at 32.1%.
2. EU: imposing a definitive anti-dumping duty on flat-rolled aluminum products imported from China
By October 12, 2021, the EC had imposed definitive tariffs of up to 19.1-24.6% on flat-rolled aluminum products imported from China to limit dumping, causing damage to the industry of Europe. Flat-rolled aluminum products are one of the core products of EU steel with a market value of 700 million euros.
However, on the same day, the Commission suspended the imposition of anti-dumping measures for a period of 9 months (according to the EU Basic Anti-Dumping Regulation, Article 14) to address market fluctuations that occurred after the investigation phase. The demand for aluminum products in the EU market is increasing, so the imposition of anti-dumping measures at this stage will cause supply disruptions and many other severe effects on trade cooperation with China in the future.
3. EU: not to prolong the suspension of the definitive anti-dumping duties on imports of flat-rolled aluminum products from China
On 9 March 2022, the European Commission sent a request to the European Aluminum Association and domestic producers to investigate whether the suspension should be extended or not. After considering market movements during the period of analysis (PoA), fluctuations in the aluminum industry that may occur in the near future, the views of importers, exporters, and the EC have decided not to extend the anti-dumping suspension of AFRPs originating in China.
Thus, from July 12, 2022, China's flat-rolled aluminum products will be subject to the prescribed anti-dumping tax rate when imported into the EU.
Antaike data show that China exported 380,000 tons of aluminum to the EU in 2021, down 17.6% compared to the same period last year. Under the EU's plan, Chinese exporters will be required to declare a carbon border tax from 2023 and be taxed on products that don't meet carbon emission regulations from 2026. These regulations will significantly affect the export of flat-rolled aluminum products from China to the European market. Besides, the challenges of supplying quality and cheap AFRPs to EU importers will increase in the coming time.