The European aluminium industry applauds the European Commission for its intention to impose provisional anti-dumping duties on certain flat rolled products originating in China.
The duty rates vary from 19,6 to 47,3% and result from an anti-dumping investigation opened on the 14th of August 2020, following a complaint from European Aluminium. The announcement is an important step forward in the fight against China’s unfair trade practices.1
“Dumped imports from China are driving European aluminium producers out of business and discourage them from investing in innovations that can boost decarbonisation and recycling. We are grateful the Commission is taking the necessary steps to protect our industry against unfair competition,” says Gerd Götz, Director General at European Aluminium.
Flat rolled aluminium imports from China in the EU included in the investigation’s scope increased from 171 kilotonnes in 2016 to approximately 330 kilotonnes last year. In 2020, the market share of these imports from China reached more than 12% and doubled compared to 5 years ago.2
The provisional duties on certain aluminium flat rolled products are expected to be imposed by the 15th of April. In the meantime, the European Commission’s investigation will continue and is expected to be finalised in October 2021. At that point, the duties will likely be confirmed as definitive. If the definitive duties are confirmed, they will typically be in place for five years. Last October, the EU already imposed preliminary duties between 21,2% and 32,1% on aluminium extrusions originating in China.3
Semi-fabricated aluminium products from China are also subject to anti-dumping duties in other major markets like the US, Canada, India, South Korea, Australia and Vietnam.
“Aluminium extrusions and flat rolled products are the most important aluminium markets in Europe. The Commission’s decision to impose anti-dumping duties on Chinese aluminium extrusions and certain flat rolled products proves that EU producers have been really damaged by China’s unfair trade practices. While anti-dumping duties can provide some relief in the short term, we also need a long-term global solution to address subsidised Chinese overcapacity,” concluded Götz.
1 Information at the provisional stage (pre-disclosure).
2 In its landmark report, “Measuring distortions in international markets: The aluminium value chain,” the Organisation for Economic Cooperation and Development (OECD) highlights that Chinese producers are recipients of vast amounts of state subsidies, which stimulates them to increase production and allows them to offer products below production costs on the international market. According to the report, global aluminium companies have received up to USD 70 billion in different forms of support over the 2013-2017 period. Notably, 85 percent of the documented subsidies went to just five Chinese firms.
3 For more information, see the case history on the European Commission’s website.