AEC stands up for the U.S. aluminium industry during Aluminum Week

During Aluminum Week held in Washington, DC, The Aluminum Extruders Council (AEC) together with the Aluminum Association put forward the U.S. aluminium industry’s voice in front of the government.

AEC members urged the government to come to a solution on the prolonged circumvention and duty evasion complaints regarding some Chinese aluminium extrusion imports and primary aluminium overcapacity in China, which is disrupting the international markets. Selected Council Members also testified at the U.S. International Trade Commission hearing on “Aluminium: Competitive Conditions Affecting the U.S. Industry”. The firm and constant follow up by this sole association that protects the rights of the downstream players in North America is expected to bring about a solution to this lingering issue.  

During the meeting between AEC representatives and the senators, they discussed the key issues affecting the aluminium extrusion industry. The circumvention and evasion allegation with the Zhongwang Group was one of the major topics in the discussion. Recently, a Wall Street Journal article (Patterson, Miller, Yap; September 8, 2016) indicted that Zhongwang has been evading U.S. trade laws by hoarding their products in Mexico and shipping into the U.S.  AEC argued that the Zhongwang Group runs a network of affiliates involved in the production, transportation, and storage of aluminium extrusions and rolled products. According to them, Mr. Zhongtian Liu ships aluminium products across borders through this company and is evading U.S. antidumping and countervailing duties on extruded aluminium as well as Chinese export duties on primary aluminium products. They bring semi-welded extrusion products in the shape to “pallets” into the U.S., re-melt them and then sell them as extrusions produced domestically.

“Commerce is close to deciding two important issues, one dealing with the pallets (scope) and another dealing with how Zhongwang is circumventing the extrusion cases by manipulating the metal to avoid duties,” said AEC President Jeff Henderson. They asked for help from the Senate staffers by requesting an early decision from Commerce on the pending issue.

AEC members also requested the Senators to take up Century Aluminum’s World Trade Organization (WTO) case regarding primary aluminium overcapacity in China.

“While lower primary aluminium prices seem like a good thing, it’s not,” said Henderson. “China will eventually drive out domestic and other sources, and then our domestic premiums will increase making us less competitive to our foreign competitors.  Eventually our orders go and then so do we as a domestic industry.” 

Some selected AEC members testified at the ITC 332 hearing, requested by the Aluminum Association. The Commission is to report on the impacts of the Chinese Government’s policies for aluminium and their impacts on the U.S.  AEC President Jeff Henderson, along with along with other representatives from the US aluminium industry testified on China’s over-production, circumvention and trans-shipment charges, pricing issues, and other relevant concerns.

“All-in-all it was a very good day for the Aluminum Extruders Council and we hope to keep the pressure on our government with these important issues. The aluminium extrusion industry is not against competition as long as it’s fair,” concluded Henderson.

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