Chinese aluminum could be let off the hook of European anti-dumping measures
It is a curious insight into E.U. thinking when there is a clear case for anti-dumping duties only for them to be rowed back at the 11th hour after complaints from just two aluminum users and one importer.
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Chinese aluminum and European anti-dumping duties
You must assume they are well connected. Pretty much the whole aluminum manufacturing sector had been behind the original case to investigate.
Currently, following an announcement made in April 2021, provisional duties of between 19.3% and 46.7% were set to become definitive duties of between 14% and 25% from October.
Those duties would have stayed in place for five years. But it seems the rapid rise in aluminum prices has sparked panic, if not in Brussels then at least among importers with the most to lose.
As such, pressure has been applied to postpone the investigation.
This is, of course, despite the rise in aluminum prices being a global phenomenon. The trade body European Aluminium says, however, that E.U. capacity is enough to supply the market and sector profit margins are tight, Reuters reported.
The post reports the European Commission said its investigation is still ongoing. Definitive measures, if any, need to be imposed by Oct. 11.
Unsurprisingly, the announcement has sent shock waves through the European aluminum market. Furthermore, it could have a significant impact on metal conversion premiums and the Rotterdam physical delivery premium in Q4.
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