SHANGHAI, May 4 (SMM) -- The US government initiated anti-dumping and anti-subsidy investigations of Chinese aluminum extrusions in late April, and follows similar investigations launched by South Africa, India, Canada, the EU, and other countries.  Chinese aluminum extrusion fabricators have been suffering from severe overcapacity and high stocks levels.  The total amount involved in the investigations is approximately RMB 3.65 billion (USD 534 million).

The US government has officially launched investigations and the impact from this case is believed to be the largest experienced by China's aluminum industry.  Total exports of aluminum extrusion (HS Code: 7604) in this case were 462.3 kt during 2009, with  exports to the US accounting for 167.4 kt, or 36.2%, of total exports of aluminum extrusions. In this context, any punitive tariffs on Chinese aluminum extrusion by the US will have a serious impact on China's aluminum extrusion exports.  The final determination is due in October 2010, and if the US government imposes punitive duties, the impact will not be fully realized until 2011.  Although China's aluminum industry has in recent years focused more on boosting domestic demand instead of relying on exports, exports are still important to growth of China's aluminum consumption. Growing worldwide trade friction, however, is also generating some uncertainty surrounding the future growth of China's aluminum exports.

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