London 07/04/2016 - The US International Trade Commission (USITC) said on Wednesday it has launched an investigation into the US aluminium industry and global aluminium trade.
The commission will report on factors of competition in major unwrought and wrought (semi-fabricated) aluminium producing and exporting countries, including the US.
It will assess the impact of government policies and programs in selected foreign countries on aluminium production, exports, consumption, and domestic prices, as well as on the US aluminium industry and global aluminium markets, the commission said.
Since last year, there has been growing calls by the US aluminium industry to local regulators to investigate alleged unfair trade practices by China in the aluminium market.
The Aluminium Extruders Council (AEC) had petitioned against China Zhongwang Holdings, whom the council alleged had “systematically and illegally evaded duties” on aluminium extrusions imported into the US, prompting a probe into the Chinese company by the US commerce department.
The AEC has argued that Zhongwang was exporting alloy extrusions through Mexico into the US to avoid US anti-dumping and countervailing duties. Zhongwang had denied the allegations.
China currently has a 15-percent duty on the export of primary aluminium but shipments of semi-finished and finished metal are tax-free. The country even offers a refund of value-added tax (VAT) on exports of some products, reducing the cost and making it more competitive in foreign markets.
Late last year, Century Aluminium also formed a new coalition called the China Trade Task Force to combat Chinese aluminium trade practices, which they argue violates WTO rules and harms US producers.
US aluminium producers have announced shutdowns and layoffs since late last year, with Alcoa officially stopping aluminium production at its 269,000 tonnes per year Warrick Operations primary smelter in Indiana earlier in March.
Alcoa will also curtail its 230,000 tonnes per year Intalco Works smelter in Washington by the end of the second quarter of 2016.
The investigation was requested by the House of Committee on Ways and Means in a letter received in February this year, said the commission.
The USITC expects to deliver the report to the Committee by June 24, 2017.
(Addtional reporting by Dalton Barker and Tom Jennemann)