US Aluminum Makers Call For End To Chinese Semi Imports Loophole

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China’s steel futures fell to a record low in Shanghai recently and a major aluminum association has asked the US trade representative to step in to stop imports of Chinese semi-finished aluminum.

Aluminum Association Asks For Semi Intervention

The Aluminum Association, a US industry body, has called on federal authorities to investigate allegations that Chinese producers of the metal are improperly labeling their exports, flooding the market and driving down global prices.

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US aluminum producers have alleged that the Chinese have mislabeled exports as semi-fabricated aluminum products in order to evade an export tax on primary aluminum. These products, the US producers say, are often re-melted into primary aluminum further along in the supply chain.

The complaint by the Aluminum Association was sent in a letter dated September 4 to a unit of the US Trade Representative.

Chinese Steel Futures Fall to Record Low

Chinese steel futures fell to a record low on Monday amid tepid demand from the world’s top consumer of the steelmaking ingredient.

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The most-traded January rebar futures on the Shanghai Futures Exchange fell to 1,839 CNY ($288.94) a metric ton, the lowest since the contract began in early 2009, before edging back above 1,900 CNY ($298.53). The contract closed 1.9% lower at 1,920 CNY ($301.67).

China’s steel consumption typically improves in September and October along with construction activity after the summer lull. But a slowing economy may mute the pickup and cap any gains in prices.

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