SHANGHAI, Feb 28 (SMM) – The impact on China’s overall aluminium foil exports following the US final determination in the antidumping and countervailing investigations remains to be seen. The demand growth from other countries as well as the movement of SHFE/LME price ratio would be key, SMM believes.
Late on February 27, the US Department of Commerce determined that Chinese aluminium foil exports are sold “less than fair value” in the US and that China is providing “unfair” subsidies to its producers.
This was the affirmative final determination following an year-long investigation, which was launched in late March 2017 on a petition from the Aluminium Association Trade Enforcement Working Group.
According to the DOC statement, Chinese aluminium foils were sold 48.64-106.09% less than fair value and that China was providing subsidies at rates of 17.17-80.97%. The US International Trade Commission would also make its final determination in early April.
This means that US importers of aluminium foil from China would have to pay cash deposits to the customs if they wish to continue the imports.
However, US customs have started to collect such deposits since August last year when the preliminary determination was announced. SMM understood that some US importers have stopped making orders since then.
We expect the results to mainly impact the orders and profits of specific producers and exporters that were involved in the investigations.
China exported 1.16 million mt of aluminium foil in 2017, up from 1.08 million mt in 2016. Exports to the US in 2016 stood at 169,000 mt.
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