EU initiated anti-dumping investigation on aluminum extrusions from China

On February 14, 2020, the European Commission issued an announcement and decided to initiate an anti-dumping investigation on aluminum extrusions originating in China. The products involved included aluminum profiles and tubes under 7604 and 7608, and some aluminum products under 7610. The dumping investigation period is from January 1, 2019 to December 31, 2019, and the damage investigation period is from January 1, 2016 to December 31, 2019. The announcement requires relevant export enterprises to provide sampling information in accordance with the requirements within 7 days from the date of the announcement of the filing of the case. All interested parties can register and respond to the complaint within 15 days from the date of the announcement.

1.Situation of China’s aluminum extrusion exports to Europe

Number of exports:

According to Chinese customs data, from 2017 to 2019, China exported 114 thousand tons, 147,000 tons and 157,000 tons of aluminum extruded materials to the 27 member states of the European Union (excluding the United Kingdom), which respectively accounted for China’s aluminum extruded materials exports that year. 12.1%, 13.6%, and 13.4%, which respectively accounted for 0.6%, 0.7%, and 0.8% of China’s aluminum extrusion output that year, as shown in the table below.

Export distribution:

In 2019, the top ten countries in China’s export of aluminum extrusion materials to the EU were Germany, Italy, the Netherlands, Poland, Belgium, Spain, Denmark, France, the Czech Republic, and Croatia, with a total export of 142,000 tons, accounting for China’s aluminum extrusion exports to the EU. 90.4% of the total pressing material.

2. General situation of China aluminum extrusion industry trade protection:

In recent years, more than a dozen countries have adopted trade remedy measures for China’s aluminum extrusions exports, including the United States, Canada, Australia, Vietnam and other important target markets. The measures cover anti-dumping, countervailing, safeguard measures and 232 investigations. It can be said that In China’s aluminum processing industry, aluminum extrusion is the earliest and most severe area to encounter trade relief.

3. Impact of case on China’s aluminum extrusion industry:

In the short term, the EU market accounts for about 10% of China’s aluminum extrusion exports. In 2019, the export volume is 157,000 tons. This case will inevitably have a certain impact on China’s aluminum extrusion exports in the short term.

In the long run, under the combined effects of the continuous development of the domestic market and the increasing protection of foreign trade, China’s aluminum extrusion industry has already formed a market structure that mainly focuses on domestic consumption. In 2019, the export volume of aluminum extrusion materials only accounts for output 0.8%, so this case will not affect the long-term stability of the aluminum extrusion industry in China.

From the perspective of enterprises, the processing association conducted a telephone survey of key member companies in a timely manner after the case occurred. Among the companies surveyed, one company’s export volume reached about 20,000 tons, accounting for about 10% of the company’s annual output; The export volume of enterprises ranges from 2,000 to 4,000 tons, accounting for 3% to 5% of the company’s annual output, and some of them are below 1%; the export volume of other enterprises is even lower, generally around several hundred tons. Therefore, with the exception of individual companies that may have a greater impact, most key companies will not be significantly impacted.