US industry expresses concerns over mounting Chinese aluminum imports

The Aluminum Association has decided to approach the World Customs Organization (WCO) to seek a permanent solution to the problem of rising aluminum product imports from China. Further, the industry body has urged the US government to conduct bilateral talks with Chinese authorities in an attempt to reduce the flow of aluminum products from that country. Meantime, the association clarified that it has no plans to file trade cases as it believes in free and open trade between the two nations.

According to Chuck Johnson, vice president of policy at the Aluminum Association, the US domestic aluminum industry is extremely concerned over the duty policy changes and export subsidies implemented by Chinese authorities, which ultimately has led to uncontrolled flow of goods into the US. Earlier during May this year, China had abolished the 15% export duty previously levied on alloyed and non-alloyed bars and rods.

Furthermore, the semis exported to the US used to undergo only minimal fabrication and were declared at a much higher import value than their actual value. The minimal metallurgical alteration of semis, made it possible to use them as substitute for primary aluminum ingots. This has caused serious damage to the US aluminum industry. A clarification on this matter by WCO could probably address the issue, the Association noted.

The Association believes that implementation of Harmonized System (HS) codes could help determine the true value of imported goods. The US government representatives at the WCO will press for a change of definitions.

According to estimates, the country’s imports of semi-fabricated aluminum products have risen by 115% from 2012 through 2014. The Chinese market share of these products almost doubled to 28% during this period. The US imports of aluminum semis totaled 675 million lb until August this year, rising nearly 75% when compared with the corresponding period last year.