
In March of 2017, The Aluminum Association’s Trade Enforcement Working Group filed petitions requesting the initiation of anti-dumping and countervailing duty (AD/CVD) investigations against the import of aluminium foil products from China. The Final USITC hearing on antidumping and countervailing duty investigations by the U.S. International Trade Commission on aluminium foil imports from China took place on Thursday February 8. Aluminium industry leaders from USA testified during the hearing before the U.S. International Trade Commission.
At the onset of the expected implementation of anti-dumping and countervailing duty (AD/CVD) on aluminium foils, we attempt an analysis of the total volume of aluminium foil imported by USA and the volume imported from China in last three years and the trends.
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According to the Aluminum Association, the aluminium foil market is worth about $5 billion, and about 36% of it is supplied by imports, up from only 16% in 2007. Data shows the U.S. imported 261,000 tonnes of aluminium foil in 2016 as compared to 240,000 tonnes in 2015. The amount of import reached 289,000 tonnes in 2017. Simultaneously, the U.S. imported 170,803 tonnes of aluminium foil from China in 2016 as compared to 150,266 tonnes in 2015. The amount of import dropped slightly YoY to 168,640 tonnes in 2017 mostly driven by controversies and investigations on the import of aluminium foil from China. In 2017, the percentage of China’s contribution in total foil import stood at 58%, which indicate the dependence of U.S. foil consumers on Chinese products.
The U.S. Commerce Department has suggested imposing tariffs ranging from 97 per cent to 162 per cent on Chinese made aluminium foil increasing it from the already existing 81% rate that the administration had imposed in the summer. For the ten months of 2018, the U.S. is estimated to import 271,901 tonnes of aluminium foil and the import from China is estimated to be about 166,431 tonnes; slightly on downward trend. Considering the widespread use of foil products in food, medical, personal care and beauty industry in the U.S., it would have a widespread ripple effect on prices of the end products made using aluminium foils.
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