Australia Probes Claim China Dumping Aluminium

SYDNEY, June 24 -- Australian customs authorities on Wednesday launched an investigation into whether China is dumping aluminium products at unfair prices in the Australian market, the latest in a series of complaints by China's trading partners.

    The complaints surface as Chinese exports of raw materials and semi-finished goods face less receptive buyers in countries hard hit by the financial downturn.

    The probe followed a complaint by local extruded products manufacturer maker Capral Ltd (CAA.AX: Quote) that Chinese imports were being subsidised by Beijing and damaging the Australian market.

    Australian Customs issued a notice detailing the investigation, saying it is alleged that China dumped aluminium extrusions in Australia from July 1, 2008 to June 30, 2009.

    Capral executives were not immediately available for comment.

    Products that are extruded are largely made of aluminium and used in equipment requiring high-strength tubing.

Many primary aluminium producers have dropped out of extruded manufacturing, though they remain suppliers of metal to the sector. 

    The investigation comes a day after India imposed a 14 percent duty on imports of aluminium flat rolled products from China, saying its imports threatened the domestic industry.

    Also, The United States and European Union took action against China on Tuesday for restricting exports of certain industrial raw materials.

    The investigation in Australia also comes shortly after Melbourne-based Rio Tinto Ltd/Plc (RIO.AX: Quote), the world's largest aluminium maker, abruptly pulled out of a $1.5 billion tie-up with China's Chinalco in favour of a partnership with fellow Australian BHP Billiton Ltd/PLc BHP.X(BLT.L: Quote), provoking an angry reaction in Beijing.

    (Source: Reuters)