Analysis of the impact of the EU's imposition of temporary anti-dumping duties on Chinese aluminium extrusion

SHANGHAI, Apr 7 (SMM) – On February 14, 2020, the European Commission initiated an anti-dumping investigation on aluminium extrusions and aluminium structures originating from China.

The applicant in this case is the European Aluminium Association. The output of the EU aluminium extrusion enterprises represented by this association accounted for more than 25% of the EU's total output.

On October 13, 2020, the European Commission issued a preliminary ruling and decided to impose temporary anti-dumping duties ranging from 30.4% to 48% on the products under investigation.

On March 30, 2021, the European Commission issued a final ruling and decided to impose anti-dumping duties ranging from 21.2% to 32.1% on aluminium extrusions and some aluminium structures from China.

A 21.2% anti-dumping duty is imposed on Guangdong Haomei New Materials and Guangdong Jingjing Special Profile Co., Ltd., and a 25.0% anti-dumping duty is imposed on Guangdong Aomei Aluminium and Guangdong Aomei High-tech Co., Ltd.

A 22.1% anti-dumping duty is imposed on "cooperative" but not sampled companies, and a 32.1% anti-dumping duty is imposed on all other Chinese companies.

The HS codes of Chinese aluminium extrusions include 76041010, 76041090, 76042100, 76042910, and 76042990).

After announced by the European Commission on October 13, 2020 to impose temporary anti-dumping duties ranging from 30.4% to 48% on products under investigation, China’s exports of aluminium extrusion to EU countries dropped significantly.

From October to November 2020, the volume of aluminium extrusion exported to EU countries decreased month-on-month. Although exports to the EU showed a slight increase thereafter, the volume has not exceeded 6,000 mt.

China’s aluminium extrusion exports to EU countries have fallen to less than 6,000 mt from more than 8,000 mt in the past, and the proportion has also dropped from 13% to less than 8%.

However, Chinese aluminium extrusion producers reported strong orders and raised operating rates, even as the anti-dumping duties hurt their exports and even forced them to suspend foreign trade at one point. 

According to SMM statistics, the domestic aluminium extrusion output in 2020 totalled 18.34 million mt. Exports to EU countries stood at just 101,400 mt in 2020, accounting for only 0.55% of total exports.

The anti-dumping duties announced in the final ruling on March 30, 2021 are lower than temporary anti-dumping duties in the preliminary ruling. 

According to the SMM survey, operating rates at most aluminium extrusion producers continued to increase on the back of rigid demand. Operating rates at small and medium-scale producers have rebounded, but remain below normal level. Large producers have resumed normal production and keep operating rates at above 90%. Domestic orders are strong at present, and are expected to grow in Q2.

In summary, the anti-dumping duties are expected to have limited impact on the Chinese aluminium extrusion market.

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