China’s aluminium foil export to US likely to see a decline in CY2018 after YoY growth in two previous years

According to the global export-import data, China’s aluminium foils export to the United States is estimated to see a decline in calendar year 2018 after successive hikes in past two consecutive years. In 2018, the expected export volume from China to the US stands at 1, 80, 475 tonnes, 9.5 per cent down from 1, 97, 704 tonnes in calendar year 2017.

 In contrast to this, both the calendar years 2016 and 2017 recorded sweeping growth in aluminium foils export from China to the United States. In 2016, the volume rose by 51 per cent from 1, 12, 699 tonnes in 2015 to stand at 1, 70, 803 tonnes, followed by a further hike by 15 per cent to 1, 97, 704 tonnes in 2017.

Along with the volume, the export revenue also recorded a surge. In 2016, China’s aluminium foils export revenue from the US increased to US$ 519 million, from US$ 509 million in 2015; while in 2017, it further surged to US$ 595 million, 16 per cent up from 2015 and 15 per cent up from 2016.

On the face of this incessant year-on-year surge in aluminium foils export from China to the US, the latter in February decided to slap higher tariffs on Chinese foil imports. The US Commerce Department announced the dumping margins would range from 48.64 per cent to 106.9 per cent and anti-subsidy rates from 17.14 per cent to 80.97 per cent.

Recently, on July 23, one of the leading Chinese aluminium foil producers Shantou Wanshun Package Material Stock Co. announced that its subsidiary is suing the United States over twin anti-dumping and anti-subsidy duties.

However, China’s export revenue from the US in 2018 is expected to shrink to US$ 472 million, lower from all the last three years.