Late last week the European Commission announced that it has begun an official inquiry into allegations that aluminium extrusions producers from the People’s Republic of China are dumping their product on the continent’s market, thereby undercutting local producers.
The Commission issued the notice on Friday as part of its regularly-published journal. The EC’s investigation is the product of a complaint by industry trade group European Aluminum, who made the complaint on behalf of seven aluminium extrusion producers.
The notice said that the preliminary evidence provided by the complainants was compelling enough to justify such an investigation.
“The evidence provided by the complainant shows that the volume and the prices of the imported product under investigation have had, among other consequences, a negative impact on the quantities sold and on the level of prices charged as well as on the market share held by the Union industry, resulting in substantial adverse effects on the overall performance of the Union industry.”
European Aluminum lauded the Commission for taking on the investigation, but the organization’s director general Gerd Götz implored the regulators to act quickly and decisively.
“Increasing amounts of underpriced Chinese exports are dumped on the EU market, with harmful consequences for European aluminium producers. In the past year, production lines and entire plants closed, with significant job losses as a result. We ask the EU to be proactive rather than wait until it is too late – we need anti-dumping duties to be introduced urgently.”
Götz went on to say that, absent immediate action, Europe risks losing a critical supply of low-carbon aluminium.
Meanwhile, producers in China voiced their objection to the move, accusing the Commission of ulterior motives.
“It will further increase global trade protectionism,” opined Wen Xianjun, vice chairman of the China Nonferrous Metals Industry Association and non-executive director at China Zhongwang Holdings Ltd. “We will organize related companies to actively respond to the complaint.”