Aluminum Association has applauded the preliminary antidumping determination in Chinese Aluminum sheet Investigation. According to an update from the association, the US Department of Commerce announced its preliminary determination that imports of common alloy aluminum sheet from China are being sold at less than fair value (or “dumped”) in the United States. As a result, the agency will instruct US Customs and Border Protection (“CBP”) to require US importers of common alloy aluminum sheet from China to deposit estimated antidumping duties at the time of import.
The association and its member companies that produce common alloy aluminum sheet are very pleased with this finding that again underscores the Commerce Department’s commitment to combatting unfair trade, said Heidi Brock, President and CEO of the Aluminum Association. For too long, the Government of China has been unfairly and illegally subsidizing its aluminum industry, leading to massive market overcapacity and challenging producers across the value chain. The action by the Commerce Department is exactly the kind of strong, targeted trade enforcement we need in support of the rules-based global trading system, noted the Association.
Based on information gathered to date, the Commerce Department calculated preliminary antidumping margins of 167.16% of the value of the imported aluminum sheet. In particular, the Commerce Department calculated an antidumping margin of 167.16% for Henan Mingtai Al Industrial Co., Ltd. and its affiliates, which the Department selected for mandatory investigation. In addition, the Commerce Department relied on the antidumping margin calculated for Henan Mingtai Al Industrial, Co., Ltd. to establish the antidumping margins for Nanjie Resources Co., Ltd. and Zhejiang GKO Aluminum Stock Co., Ltd., two other companies selected for mandatory investigation, on the basis of adverse facts available.
The Commerce Department also calculated an antidumping margin of 167.16% for companies that cooperated with the agency’s investigation and requested separate rate status, but were not individually investigated. Finally, the Department preliminarily established an antidumping margin of 167.16% for all other Chinese producers and exporters that did not participate in the Department’s investigation.
Overall, the US aluminum industry supports 162,000 direct jobs and nearly 700,000 jobs when indirect and induced impacts are considered. Further, the industry creates $ 71 billion in direct economic impact and $ 174 billion in total impact, around one percent of US GDP. The industry has been operating in a challenging environment for a number of years largely as a consequence of Chinese overcapacity distorting the marketplace.