Aluminum Industry Representatives testify before ITC on imports of common aluminium alloy sheet

Representatives from the U.S. aluminium industry yesterday testified before the U.S. International Trade Commission (ITC) in support of a determination that imports of common aluminium alloy sheet from China threaten to injure domestic producers, a press release from Aluminum Association confirms.  Constellium, Jupiter Aluminum, JW Aluminum Company and Novelis Corporation were the major representatives testifying against low-priced, unfairly traded Chinese imports of common alloy sheets.

“Today was an important next step in the ongoing unfair trade investigations on common alloy aluminium sheet from China that were recently self-initiated by the Commerce Department,” said Heidi Brock, President & CEO of the Aluminum Association.

“Our industry representatives provided comprehensive and compelling evidence to the U.S. International Trade Commission that unfairly traded imports of common alloy aluminum sheet from China are injuring U.S. producers. ”

The representatives highlighted the surge in imports of common alloy sheet from China by more than 91 per cent between 2014 and 2017. They also said that substantial margins by which imports of common alloy sheet from China was underselling U.S. producers had resulted in business loss for them and market share gains for the Chinese producers. The imports according to them had affected capacity, production, domestic shipment volume and value, net sales value and operating and net income.

In November, 2017, the Department of Commerce self-initiated antidumping and countervailing duty (AD/CVD) investigations on imports of common alloy aluminium sheet from China.  While initiating the AD/CVD investigations, the Commerce Department estimated antidumping margin of between 56.54 to 59.72 per cent for these products.

Common alloy aluminium sheet is a highly consumed flat rolled aluminium product that is used in a variety of applications, including transportation, building and construction, infrastructure, electrical and marine applications for its strength weight ratio and high formability.  The U.S. ships about 2 billion pounds of common alloy aluminium sheet each year. The common alloy aluminium sheet subject to the investigations is within a thickness of 6.3 mm or less, but greater than 0.2 mm and is manufactured from a 1XXX-, 3XXX-, or 5XXX-series alloy.  The investigation includes both unclad aluminium sheet, as well as multi-alloy, clad aluminium sheet.

The ITC is expected to vote on January 12, 2018, on whether the domestic producers of common alloy sheet are injured or threatened with injury because of these imports.  Currently the ITC reaches a determination that the Commerce Department will proceed with antidumping and countervailing duty investigations and will reach preliminary countervailing duty determination on February 1, 2018. Preliminary antidumping determination is expected to be complete on April 17, 2018.

The entire investigative process would take about one year to complete, with final determinations expected to be out by late 2018 or early 2019.