The Brazilian government has become the next jurisdiction to impose trade sanctions on imports of aluminium from sellers in the People’s Republic of China.
According to an announcement from China’s Ministry of Commerce late last week, the Brazilian government will begin to impose countervailing duties at the end of March on aluminium sheet products exported from China.
The Brazilian government plans to maintain the import duties for five years at levels between 14.88 percent and 14.93 percent.
The Middle Kingdom is currently the most prolific producer of aluminium, and customs records indicate that Brazil has taken in 9,520 metric tons of aluminium sheet through the first eleven months of 2022, totaling US$36.81 million. Last year Chinese producers sent 12,720 metric tons of aluminium sheet to Brazil, totaling a value of US$38.98 million.
Brazil is but the latest in a long line of countries and trade zones that have moved to limit access to Chinese aluminium exporters. Chinese aluminium producers have long been accused of receiving state support, enabling them to produce aluminium products at a much lower cost. As a result, jurisdictions around the world have seen fit to erect trade barriers to Chinese aluminium imports, accusing those importers of flooding local markets and depressing values.
Analysts say that trade barriers have done little to prompt China to reduce production, as industry experts forecast more aluminium production to come online in the coming months. Aluminium production is expected to increase in China due to relaxation of power rationing and an increase in demand by the post-COVID-19 global economy.