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[interpretation of SMM] the "double reverse" of the United States has dealt a blow to aluminum cable enterprises, but "Belt and Road Initiative" and other countries have made up for some of the losses.
Jun 3,2019 14:58CST
translation
Source:SMM
The content below was translated by Tencent automatically for reference.

SMM6, March 3: on May 30, the US Department of Commerce announced a preliminary affirmative anti-dumping ruling on Chinaluminous wire and cables, saying that Chinese aluminum cable manufacturers dumped in the United States, with a margin of dumping ranging from 58.51 to 63.47 per cent. The US Department of Commerce will instruct the US Customs and Border Protection Agency to collect cash deposits from manufacturers of Chinese aluminum cables.

The Commerce Department will announce the final decision around October 9, 2019.

In 2017, US imports of aluminium wire and cables from China were estimated to be worth $157.2 million. "complete announcement

 

SMM's exclusive interpretation of Market impact:

As early as October 12, 2018, in response to an application submitted by domestic companies Encore Wire Corporation and SouthwireCompany, LLC on September 21, 2018, the US Department of Commerce announced that it had launched an anti-dumping and countervailing investigation into imports of aluminum wires and cables from China. On November 2, 2018, the (USITC) of the United States International Trade Commission voted to make a preliminary decision on anti-dumping and countervailing industrial damage to imports of aluminum wires and cables from China. According to US statistics, US imports from China totaled about $157.2 million in 2017.

The Commerce Department announced that the initial anti-dumping ruling on imports of aluminum wires and cables from China was about two months later than originally scheduled for March, mainly because of the shutdown of the US government at the beginning of the year. This case concerns products under the United States coordinated tariff number 8544.49.9000 and some products under 8544.42.9090.

Us Commerce Department announces initial Anti-dumping rate for Aluminum Wire and Cable imported from China

Source: SMM China Trade Relief Information Network

 

Double reverse process of American Aluminum Wire and Cable to China

Source: SMM China Trade Relief Information Network

 

Not long ago, the US Department of Commerce announced the initial countervailing of (Aluminum Wire and Cable) imports of aluminum wires and cables from China. According to a preliminary ruling, the subsidy rate of Shanghai slin Special equipment Engineering Co., Ltd. (Shanghai Silin Special Equipment Co., Ltd.) was 15.77%, and that of Changfeng Cable Co., Ltd. (Changfeng Wire & Cable Co., Ltd.) was 11.57%. The subsidy rate for Shanghai YangPu Qu Gong is 164.16 per cent, while that for other producers and exporters is 13.67 per cent. The Commerce Department is expected to announce the final ruling on August 13, 2019. This case concerns the United States coordinated tariff No. 8544.49.9000 and some of the products under 8544.42.9090.

In the long run, domestic demand in the aluminum cable industry is on a downward trend, although in years when power infrastructure is more concentrated, the output of the aluminum cable industry will pick up. However, because most of the rural power network transformation and cross-provincial transmission projects in China have been completed and are in the leading level in the world, if the cable industry wants to achieve long-term development, export has become a way for more enterprises to survive. According to the statistics of China's customs data, the proportion of aluminum cables exported to the United States is about 3% to 5%, with the exception of the US market. In the past two years, Chinese cable enterprises have increased their cable exports to "Belt and Road Initiative" countries and African countries. The United States has launched a "double reverse" investigation, which will deal a further blow to cable companies that are already struggling, but can make up for some of the losses by exporting to other countries.

 

Proportion of exports to the United States under the caliber of customs data

Source: SMM General Administration of Customs

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Double reverse
aluminum cable
anti-dumping ruling
import and export

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