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Foshan City Aluminum Profile Exports to US Shrink by 67%
Dec 6,2010 13:19CST
smm insight

SHANGHAI, Dec. 6 (SMM) -- Exports of aluminum profile from the Foshan city in Guangdong province to the US have fallen sharply since the US government announced anti-subsidy tariffs on 31 August 2010 as a result of its anti-dumping and anti-subsidy investigations of Chinese aluminum profiles. According to a briefing on the Foshan Import and Export Fair Trade jointly issued by the Bureau of Foreign Trade and Economic Cooperation of Foshan City and Foshan Customs, exports of aluminum profile to the US were 1,150 mt in October, only 33% of August levels.

The briefing also reported that the US government announced on October 28th its preliminary determination from anti-dumping investigations and would impose anti-dumping duties of 59.31% on many of China's aluminum profile exporters. As a result, exports of aluminum profiles from Foshan city to the US are expected to continue shrinking.

Foshan manufacturers suffered a similar experience with the Canadian government in 2009.    Foshan city's exports of aluminum profile to Canada from January to September 2009 were less than 400 mt, down 92.5% after the Canadian government announced penalties after anti-dumping and anti-subsidy investigations of Chinese aluminum profiles. 

Although the tariffs imposed by the US have been effective in reducing imports of aluminum profile originating in China, most of the burden has been borne by China Zhongwang Holdings Limited, the largest industrial aluminum profile manufacturer in China. Exports to the US are expected to fall to zero over the long-term and other countries may be encouraged to initiate similar investigations. Aluminum plate, sheet, and strip make up the highest proportion of aluminum semis exports, and this type of product also faces growing international trade barriers, but anti-dumping and anti-subsidy measures at present are relatively mild. In this context, China's aluminum semis exporters are pessimistic.


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