Malaysia’s surging aluminium extrusions export prompts Australia to revise its securities charges

Malaysian aluminium extrusions export has witnessed a remarkable surge in the recent years. The shipment to the Australasian zone has increased so much that it has drawn the ire of the Australian government’s Anti-Dumping Commission to revise its levels of securities on the imports. The revisions are a result of an investigation into possible dumping and/or subsidization of those aluminium extrusions launched in October of last year. However, while the export of aluminium bar rods and profiles has increased manifold, the demand for aluminium tubes and pipes in the international market has fallen year-on-year.

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Data shows, Malaysia’s aluminium tubes and pipes export in 2016 was only 2201.37 tonnes, down 68.58 per cent from previous year’s 7007.35 tonnes. The value of export, too, has almost halved in tandem with the volume exported. In 2015, total aluminium tubes and pipes export was valued at US$25.9 million, which decreased significantly to stand at US$15.28 million in 2016.

It is estimated that Malaysia will export 2034.85 tonnes of aluminium tubes and pipes in 2017, down 7.5 per cent from last year. Earnings from aluminium tubes and pipes export will also drop at US$11.3 million in 2017.

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The above figures are in stark contrast with those of other key aluminium extruded products. Malaysia’s aluminium bar rods and profiles export in 2016, for example, totalled 135138.57 tonnes compared to only 45508.96 tonnes in 2015. In 2017, the volume is estimated to rise further. As per international trade data, it will reach 157651.60 tonnes, up 16.65 per cent year-on-year.

According to a latest industry report, Australian government’s Anti-Dumping Commission excludes Malaysia’s Press Metal Berhad, LB Aluminium Berhad, Superb Aluminium Industries Sdn Bhd, and other (residual) exporters from being assessed securities charges. But “uncooperative exporters” from the country will be assessed a securities charge of 12.4 per cent. Prior to the adjustment, Malaysian aluminium extrusions exporters would be mandated to pay a securities charge of 34.2 per cent.