The European Union threatened to impose tariffs on aluminum foil from Russia to curb competition for EU producers such as Eurofoil Luxembourg SA and Bulgaria-based Alcomet AD, Bloomberg News reported.
The EU opened a probe into whether Russian exporters of the wrapping sold it in the 28-nation bloc below cost, a practice known as dumping. We here at MetalMiner are always on Dump Watch.
The inquiry will determine whether aluminum foil from Russia “is being dumped and whether the dumped imports have caused injury to the union industry,” the European Commission, the bloc’s trade authority in Brussels, said today in the Official Journal. The commission has 9 months to decide whether to impose provisional anti-dumping duties for half a year and 15 months to decide whether to apply “definitive” levies for 5 years.
The investigation stems from an Aug. 25 dumping complaint against Russia by a group of European aluminum-foil manufacturers including Eurofoil Luxembourg and Alcomet, said the commission. The group, also made up of German producers Hydro Aluminium Rolled Products GmbH and AFM Aluminiumfolie Merseburg GmbH and Slovenia-based Impol doo, filed the complaint on behalf of producers that account for more than a quarter of the EU’s output of the type of aluminum foil subject to the probe, according to the commission.
United Co. Rusal, which says it is Russia’s only producer of aluminum foil, described the complaint by EU-based competitors as being “without merit.”
Moscow-based Rusal, the world’s biggest aluminum producer, also pledged in an e-mailed statement to Bloomberg to cooperate with EU authorities to prove the fairness of its export prices and to seek a “fair and favorable solution.”
Following two days of increases on the LME, the aluminum 3-month price dropped by 1.7% to end at $1,922 per metric ton on Monday, October 13. The cash price of primary aluminum changed direction with a 1.7% drop. After two days of improving prices, the metal finished at $1,891 per metric ton on the LME. The Indian aluminum cash price declined 0.2% to INR 118.80 ($1.94) per kilogram.
Chinese aluminum prices were flat for the day. The price of Chinese aluminum scrap saw essentially no change for the fifth day in a row, remaining around CNY 12,250 ($1,995) per metric ton. For the fifth consecutive day, the price of Chinese aluminum billet held flat at CNY 13,590 ($2,213) per metric ton. The price of Chinese aluminum bar saw little movement at CNY 14,200 ($2,312) per metric ton. For the fifth day in a row, the Chinese aluminum cash price remained essentially flat at CNY 13,960 ($2,273) per metric ton.