This morning in metals, the Aluminum Extruders Council praised the Department of Justice for its allegation that Zhongwang and its affiliate illegally evaded $1.5 billion in tariffs, Tokyo Steel is raising its prices and hedge funds are high on the metals industry.
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DOJ Alleges Zhongwang, Affiliate Illegally Avoided $1.5B in Tariffs
The Aluminum Extruders Council applauded the U.S. Department of Justice late last week, praising it for its allegation that China Zhongwang and an affiliate eluded $1.5 billion in tariffs while smuggling aluminum pallets into the U.S.
“We want to applaud the Department of Justice’s decision to begin civil proceedings against Zhongwang’s affiliate Perfectus,” said Jeff Henderson, president of the Aluminum Extruders Council. “Today’s filing is the culmination of a concerted effort by the AEC and its members in conjunction with Customs and the Department of Commerce to investigate Zhongwang’s alleged attempts to avoid paying duties since the orders went into effect. The AEC will continue to assist the agencies in their efforts to investigate this matter going forward.
“Furthermore, this should be a clear signal to those that seek to evade, circumvent, or in any way violate our orders that such activities will be uncovered and prosecuted.”
According to the civil complaint in the Department of Justice investigation, California company Perfectus Aluminum Inc. is allegedly owned by Liu Zhongtian, founder and chairman of Zhongwang.
Tokyo Steel Ups Prices
Tokyo Steel announced its prices will be going up in October, Reuters reported.
The price hike, which is taking place for the second month in a row, comes as a result of higher prices overseas and a tight domestic market, according to the report.
Hedge Funds Feeling Metal
The hedge fund industry is feeling good about the future of the metal industry.
According to Reuters, hedge fund investment in the metals industry is at its highest since 2011.
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A major reason for the bounceback? A tightening of global supply, to a significant extent the product of China’s supply cuts.