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The Aluminum Association Applauds Commerce Department’s Self-Initiation of Unfair Trade Cases On Imports Of Common Alloy Sheet From China

November 28, 2017

ARLINGTON, VA – The Aluminum Association applauds the United States Department of Commerce’s decision today to self-initiate antidumping and countervailing duty investigations on imports of common alloy sheet from the People’s Republic of China. 

The Commerce Department will now conduct investigations of whether imports of common alloy sheet from China are being sold in the United States at unfairly low prices, as well as whether Chinese producers of common alloy sheet are receiving actionable subsidies from the Government of China. 

“The Aluminum Association and its members enthusiastically support the decision announced today by the Department of Commerce and Secretary Wilbur Ross to self-initiate unfair trade investigations concerning imports of common alloy sheet from China,” stated Heidi Brock, President & CEO of the Aluminum Association. “We are extremely grateful for the efforts and leadership of Secretary Ross in vigorously enforcing the U.S. trade laws.  The Aluminum Association and its members seek to help ensure that common alloy sheet from China entering the United States is fairly traded.” 

In its announcement earlier today, the Commerce Department estimated a dumping margin of between 56.54 to 59.72 percent for imports of common alloy sheet from China. In addition, the Commerce Department announced that it will investigate subsidies provided by the Chinese government to common alloy sheet producers.  

Common alloy sheet is a flat rolled aluminum product that is used in a variety of applications, including transportation, building and construction, infrastructure, electrical, and marine applications where its strength, relatively light weight, formability, and resistance to corrosion are required.  The U.S. aluminum industry ships about 2 billion pounds of common alloy sheet every year out of around 26 billion pounds of total domestic aluminum demand.

Overall, the U.S. aluminum industry supports 161,000 direct jobs and more than 700,000 jobs when indirect and induced impacts are considered. Further, the industry creates $75 billion in direct economic impact and $186 billion in total impact, around 1 percent of U.S. GDP. The industry has been operating in a very challenging environment for a number of years largely as a consequence of Chinese overcapacity distorting the marketplace.

The U.S. International Trade Commission will determine whether there is a reasonable indication that domestic producers of common alloy sheet are materially injured or threatened with material injury within 45 days.  The entire investigative process will take approximately one year to complete, with final determinations of dumping, subsidization, and injury likely occurring in late 2018 or early 2019.  

The common alloy aluminum sheet subject to the unfair trade investigations is a flat-rolled aluminum product having a thickness of 6.3 mm or less, but greater than 0.2 mm, in coils or cut-to-length, regardless of width, and is manufactured from a 1XXX-, 3XXX-, or 5XXX-series alloy.  The aluminum sheet subject to investigation includes both unclad aluminum sheet, as well as multi-alloy, clad aluminum sheet. Common uses for the product under investigation include gutters and downspouts, building facades, street signs and license plates, electrical boxes, kitchen appliances and tractor-trailers for trucks. Excluded from the scope of the investigations is aluminum can stock that is suitable for use in the manufacture of aluminum beverage cans, lids, or tabs.

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About the Aluminum Association
The Aluminum Association represents aluminum production and jobs in the United States, ranging from primary production to value added products to recycling, as well as suppliers to the industry. The Association is the industry’s leading voice, providing global standards, business intelligence, sustainability research and industry expertise to member companies, policymakers and the general public. The aluminum industry helps manufacturers produce sustainable and innovative products, including more fuel-efficient vehicles, recyclable packaging, greener buildings and modern electronics.  In the U.S., the aluminum industry creates $186 billion in economic activity. For more information visit http://www.aluminum.org, on Twitter @AluminumNews or at Facebook.com/AluminumAssociation.

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