European Aluminium welcomes the UK anti-dumping investigation into Chinese extrusions

European Aluminium, the single voice of the entire aluminium value chain in Europe, welcomes the UK investigation into aluminium extrusions originating in China that was opened by the UK’s Trade Remedies Authority on 21 June 2021.

If the investigation confirms that aluminium extrusions originating in China have been dumped on the UK market and have caused injury to the UK producers of extrusions, anti-dumping duties could be imposed to help level the playing field.

The UK is one of the last major markets for extrusions not covered by anti-dumping duties against China. The EU, US, Canada, Australia, Vietnam have all introduced anti-dumping duties on Chinese extrusions.

The EU’s preliminary anti-dumping duties on extrusions originating in China covered the UK from 13 October 2020 until 31 December 2020. However, when the Brexit transition period finished on 31 December 2020, the UK could not maintain the EU anti-dumping duties as they were only preliminary, not definitive. The EU imposed definitive anti- dumping duties, ranging from 21.2% to 32.1%, on 30 March 2021.

China’s aluminium excess capacity undermines European production, distorts global markets and depresses global aluminium prices, threatening the competitiveness of the European aluminium industry while undermining its sustainability ambitions. Its growing excess capacity is fuelled by disproportionate financial and energy subsidies provided by the State. A recent OECD report shows that below-market finance plays a major role in favouring certain aluminium producers, the vast majority being Chinese.

“In the EU alone, there are currently 73 trade defence measures in force that target products originating in China, including seven groups of aluminium products.1 Anti-dumping duties can act as a temporary band-aid but it’s clear we need a structural and global solution to address China’s unfair trade practices and we hope the agreements made during the recent G7 Summit will pave the way for modernised trade rules that can tackle them effectively,” concludes Gerd Götz, Director General of European Aluminium.

1 The seven groups of aluminium products originating in China that are currently subject to EU investigation are: extrusions, flat-rolled products, household foil (jumbo reels and small rolls), certain radiators, certain road wheels and converter foil (pending/expected to be imposed in mid-June).