“Australia is preparing to anti-dumping for aluminum profiles in China.” Wu Keyao, chief executive of Jinqiao International Holdings Co., Ltd., one of the largest aluminum extrusion companies in China, said to this reporter.
A person familiar with the Australian aluminum processing market revealed that two Australian aluminum processing companies Carpal and G-James are preparing to institute anti-dumping lawsuits against Chinese companies. Wu Keyao said, "We have lost the Canadian market. If we lose the Australian market, it will be very bad." At the 2009 Shanghai Copper-Aluminum Summit, Ma Shiguang, secretary general of the China Nonferrous Metal Processing Industry Association, told this reporter that due to the cancellation of export tax rebates, trade frictions, and economic crisis, the export situation of aluminum profiles in China has turned a turning point. Since October 2008, the export volume of aluminum products in China has dropped from 160,000 tons to 50,000 tons, an increase of 100.2% year-on-year, and aluminum profiles exports have dropped by 69% year-on-year.
The literature army of the China Nonferrous Metals Industry Association, the vice president of the China Nonferrous Metals Industry Association, told this reporter that in the economic crisis, trade protectionism has intensified in various countries. “We will take corresponding actions when necessary.”
The inflection point, Ma Shiguang, said that in recent years, the proportion of China's aluminum processing products has been increasing, and by 2008 it has achieved a net export of processed aluminum products. Wang Chunhai revealed that North China Aluminum's products already have markets in 20 countries and regions abroad.
According to Wu Keyao, cost-effective Chinese aluminum processing products have stimulated foreign nerves. In the first half of 2008, domestic aluminum prices were lower than foreign aluminum prices, and the cost advantages of domestic aluminum processing manufacturers were further enhanced.
According to Wu Keyao, Australia's annual consumption of aluminum profiles is approximately 146-160,000 tons. Capral and G-James and other local manufacturers account for about two-thirds of the total, and most of the others are from China. "Because of the cost-effectiveness of aluminum profiles from China, As a result, Chinese aluminum processors have a growing market share in Australia."
However, over the past year, various countries have successively imposed sanctions on China's aluminum processing, such as anti-dumping, which has given me a splash of cold water.
North China Aluminum Co., Ltd., a subsidiary of China Minmetals, is the victim of ad valorem tax in India. Wang Chunhai, head of the company’s export department, said that the aluminum foil produced by the company is very popular in India and now accounts for about 10% of the total. However, "it is difficult to say after the ad valorem tax is levied."
In the view of Ma Shiguang, the turning point in China's aluminum processing exports has come.
As Chinese aluminum processors entered the Australian market, local Australian producers have lost ground. Capral recorded a post-tax loss of 132 million in 2008 and replaced the CEO.
According to informed sources, Capral’s new chairman of the board of directors publicly stated that China’s low-cost aluminium processing products have affected Australia’s aluminum industry and “have reached the critical moment of survival.” Capral Chairman of the Board stated that in order to improve the performance of the company, the company and other major Australian aluminum processors are preparing to submit anti-dumping investigations on imported aluminum products imported from China.
The person familiar with the matter said that because Capral quoted Canada's anti-dumping case this time, litigation costs are very low and they are very successful.
Wang Chunhai said that although North China Aluminum's foreign market is relatively fragmented, if the direct reference to other countries' cases like Australia and India's direct recognition of the import volume situation, then the "consequences will be very serious."
Solving anti-dumping documents The military said that if Australia applies anti-dumping sanctions against domestic aluminum processing, it will contribute to the protectionist sentiment of world trade, which is not conducive to the development of aluminum processing in China.
The above informed sources said that to prevent Australia's anti-dumping sanctions against Chinese aluminum processing products, there are only two ways: first, to acquire Capral; second, to “infect poison”: if Australia imposes anti-dumping sanctions on Chinese aluminum processing products, China will also The bauxite imported there is subject to anti-dumping sanctions.
However, according to Wu Keyao, the acquisition of Capral is not feasible. Capral is the largest aluminum processing company in Australia. Although the market value has shrunk greatly, the total amount is still very large, and the cost-effectiveness is too low. “Capral's production costs are too high.”
The Documentary Army stated that it hopes that the two sides can further discuss on the issue of anti-dumping of aluminum products.
Zhang Yuqing, who was once the head of the legal expert group of China’s WTO negotiating delegation, once stated that on the one hand, it is necessary to increase the development of the domestic market, and on the other hand, it is necessary to improve the grade of export products.
Wu Keyao also said that aluminum producers should expand downstream to make aluminum products into concrete products such as automotive parts and furniture accessories. However, he is also frank. Deepening the processing requires a lot of manpower and material resources. It cannot be solved within a year or two.