Aluminum Industry Representatives Testify Before U.S. International Trade Commission on Injury Caused by Common Alloy Aluminum Sheet Imports from China
WASHINGTON, D.C. -- Aluminum industry leaders testified today before the U.S. International Trade Commission (ITC) in support of a determination that imports of common alloy aluminum sheet from China injure or threaten to injure U.S. producers. Representatives from Aleris Corporation; Arconic, Inc.; Constellium; Jupiter Aluminum; JW Aluminum Company; and Novelis Corporation testified concerning the injury caused to their companies as a result of a surge in low-priced, unfairly traded imports of common alloy sheet from China.
“Today was an important next step in the ongoing unfair trade investigations on common alloy aluminum sheet from China that were recently self-initiated by the Commerce Department,” said Heidi Brock, President & CEO of the Aluminum Association. “Our industry representatives provided comprehensive and compelling evidence to the U.S. International Trade Commission that unfairly traded imports of common alloy aluminum sheet from China are injuring U.S. producers. We look forward to the next steps in this process.”
Specifically, panelists from the aluminum industry highlighted:
- The surge in imports of common alloy sheet from China, with the volume of imports increasing by nearly 750 percent over the last decade, and by more than 91 percent between 2014 and 2017, the period on which the ITC’s investigation will focus.
- The comprehensive and substantial margins by which imports of common alloy sheet from China is underselling U.S. producers, resulting in significant market share gains by Chinese imports at the direct expense of the U.S. industry.
- The negative effects of low-priced Chinese imports on the domestic industry’s operations, including reductions in capacity, production, domestic shipment volume and value, net sales value, operating and net income, and the industry’s operating and net income to sales ratios.
On November 28, 2017, the Department of Commerce self-initiated antidumping and countervailing duty (AD/CVD) investigations on imports of common alloy aluminum sheet from the People’s Republic of China. The investigations will determine whether these imports are being sold in the United States at unfairly low prices and also whether Chinese producers receive actionable subsidies from the Government of China on these products. This was the first time in more than 25 years that the Commerce Department self-initiated AD/CVD actions. In announcing the initiation of the AD/CVD investigations last month, the Commerce Department estimated antidumping margin of between 56.54 to 59.72 percent for these products and indicated that the agency will be investigating 26 separate subsidy programs conducted by the Government of China.
Common alloy aluminum 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 essential. The U.S. aluminum industry ships about 2 billion pounds of common alloy aluminum sheet each year.
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 common alloy aluminum sheet subject to the unfair trade investigations is a flat-rolled aluminum product with 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.
The ITC is tentatively scheduled to vote on January 12, 2018, on whether there is a reasonable indication that domestic producers of common alloy sheet are materially injured or threatened with material injury. In the event the ITC reaches an affirmative preliminary determination, the Commerce Department will proceed with antidumping and countervailing duty investigations. The Commerce Department is currently scheduled to complete its preliminary countervailing duty determination on February 1, 2018, and is currently scheduled to complete its preliminary antidumping determination on April 17, 2018, although those deadlines can be extended. 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.
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.