EUROPEAN INDUSTRY OPPOSES SUSPENSION OF EU ANTI-DUMPING MEASURES ON ROLLED PRODUCTS FROM CHINA

The European aluminium industry strongly opposes the proposed EU suspension of anti-dumping duties on Chinese flat-rolled products, which would put European jobs and the decarbonisation of the industry at risk. That is why they are asking the Commission not to suspend the definitive measures scheduled for October 2021.

Representing the aluminium value chain in Europe, the co-signatories have signed and made public a joint communiqué expressing their strong opposition to the proposed 9-month suspension plans for definitive anti-dumping duties on certain aluminium flat rolled products originating in China.

With 40 rolling mills in 17 EU Member States, more than 36,000 employees and an annual turnover of ¤4 billion, the European aluminium FRP market makes a vital contribution to the prosperity of the European economy.

As they point out from this entity “our products supply essential industrial sectors such as mobility, construction, packaging, technical applications, consumer durables and the sheet sector. For years, we have warned policy makers that China’s distorting government support and overcapacity destroy fair competition and depress world prices”.

They also point out that the latest OECD report on below-market financing and the anti-dumping investigation on our sector have confirmed “the serious industrial damage caused by China’s unfair trade practices”. They also reiterate that such Chinese imports not only ruin their competitiveness, but also wreck Europe’s sustainability ambitions.

According to the European aluminium industry, the suspension of the urgently needed anti-dumping duties will keep the floodgates open for imports of high-carbon aluminium products from China. With 20 kg of CO2 per kg of primary aluminium compared to the European average of 7 kg of CO2 per kg of aluminium, Chinese aluminium has a much larger carbon footprint than products produced in Europe.

“We want to reiterate that the definitive anti-dumping duties on Chinese FRPs are balanced, fair and essential for the survival of our industry in Europe. They raise the price of illegally undercut imports to reflect so that all producers can compete on a level playing field,” they stress.

The suspension of duties will have a detrimental and lasting impact on the entire aluminium value chain in Europe and beyond. Tens of thousands of jobs in the EU and hundreds of millions of euros in decarbonisation and recycling investments.

Currently, the profitability of European GRP producers is only 1.9% in the first quarter of 2021, far below the 6% profit margin that the Union legislator qualifies as an expected margin under normal conditions of competition.

“By affecting our competitiveness, a suspension of anti-dumping measures will also jeopardise our efforts to meet Green Deal objectives, while setting a dangerous precedent for other ongoing or future anti-dumping cases. Investment certainty and strong trade defence remedies are critical preconditions for further investment in decarbonisation and recycling and for creating more sustainable jobs,” they stress.

Beyond the imminent harm from the suspension, “we would like to point out the danger of more lasting effects, such as stockpiling by importers during the suspension period. Due to its surplus China may export large quantities of FRP during this period, undermining the effectiveness of anti-dumping measures beyond the suspension”.

Finally, it recalls that as the European Commission’s findings acknowledge, at 20%, EU capacity for all products covered by the anti-dumping investigation is ready to meet current and future EU demand. In addition, aluminium users can continue to choose from non-EU suppliers including Chinese imports, which are not dumping.