The U.S. Department of Commerce. qingwa/Adobe Stock
This morning in metals news, the U.S. Department of Commerce issued a ruling that has U.S. aluminum interests applauding, the London Metal Exchange might be considering deferring a plan to charge fees on over-the-counter contracts and Kobe Steel pulls its full-year profit forecast as the fallout from its data falsification scandal continues.
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DOC Issues Affirmative Ruling in Aluminum Foil Antidumping Case
On Friday, the DOC announced that it had found exporters of aluminum foil from China sold their product at prices that resulted in preliminary dumping margins of 96.81% to 162.24% to be applied, “based on factual evidence provided by the interested parties using the Department’s standard non-market economy dumping methodology.”
The petitioner is the Aluminum Association Trade Enforcement Working Group.
Not long after the announcement, the Aluminum Association applauded the DOC’s decision.
“Following the positive preliminary countervailing duty determination this summer, the association and its foil-producing members 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, in a prepared statement.
“We appreciate Secretary Ross’s leadership in enforcing rules-based global trade. U.S. aluminum foil producers are among the most competitive producers in the world, but they cannot compete against products that are sold at unfairly low prices and subsidized by the Government of China.”
According to the DOC release on the announcement, in 2016 imports of aluminum foil from China were valued at an estimated $389 million.
Change of Plans?
According to Reuters, the LME might be having a change of plans vis-a-vis fees on over-the-counter contracts. The LME last month it would institute the new fees in January, but is now considering deferring them.
According to the report, LME CEO Matt Chamberlain said the exchange is trying to balance out the costs of trading on and off exchange.
Kobe Steel Holds Earnings Forecast
On the heels of the Japanese steelmaker’s quality data falsification scandal, the firm has decided to withdraw its full-year profit forecast, according to the BBC and other media reports.
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Kobe Steel, Japan’s third-largest steelmaker, has seen its shares drop more than 30% as a result of the scandal.