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Released March 10, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Enough is enough, according to U.S. aluminum foil producers, whose trade group filed antidumping and countervailing duty petitions on Thursday charging that unfairly traded imports of certain aluminum foil items from China are harming the domestic industry.
The Aluminum Association, whose members include Alcoa Corporation (NYSE:AA) (New York, New York), Arconic (NYSE: ARNC) (New York, New York), ABC Aluminum Solutions (San Diego, California), AlcoTec (Traverse City, Michigan) and others, filed the complaint with the U.S. Department of Commerce and the U.S. International Trade Commission (USITC). In January, the U.S. filed a complaint with the World Trade Organization (WTO) against what it perceives as unfair subsidies in China's aluminum sector. Industrial Info is tracking $5.98 billion of U.S. aluminum projects set to kick off between 2015 and 2017 that have been cancelled or on hold. For more information, see January 13, 2017, article - U.S. Makes WTO Complaint Over Chinese Aluminum Subsidies.
Thursday's action by the Aluminum Association marks the first time the trade group has filed unfair trade cases on behalf of its members, said association Chief Executive Officer Heidi Brock. The association alleges that Chinese producers benefit from 27 government subsidy programs. Antidumping margins range from 38% to more than 134% of the value of the imported aluminum foil, according to the group.
The complaint deals with imports of foil used in household foil, flexible and semi-rigid cookware, product packaging, automotive and heating, venting and air conditioning (HVAC) heat exchangers, among other common uses.
According to the Aluminum Association, U.S. production accounted for 84% of all domestic aluminum foil demand in 2004, but it now accounts for only 69%. At the same time, Chinese imports grew from roughly 0% of the total U.S. aluminum foil market to 22% of the market. Aluminum foil imports from China have grown by nearly 40% since 2014, and Chinese products accounted for about 71% of the total U.S. aluminum foil imports in 2016.
The Aluminum Association went on to say that Chinese foil imports have captured market share from third-country producers. The trade group expects the U.S. investigation into the complaints to take roughly a year.
The Trump Administration is taking aim at what it sees as unfair trade practices by countries such as China. Commerce Secretary Wilbur Ross said recently those found responsible for unfairly dumping products into the U.S. "should be punished, and severely." In addition, Ross said there will be a focus on steel and aluminum imports.
China, in the meantime, has ordered reductions in aluminum output during the winter heating season in order to curb pollution, according to news media accounts.
Despite the numerous U.S. aluminum projects that have been cancelled or put on hold, Industrial Info is tracking $1.87 billion in U.S. aluminum sheet, plate and foil projects that remain active.
Constellium France SAS's (Paris, France) $280 million expansion project at the Muscle Shoals, Alabama, aluminum alloys plant is currently expected to be completed in early 2020. The project will expand hot mill capacity from 450,000 tons per year to 700,000 tons per year. For more information, see Industrial Info's project report.
In Kentucky, the $240 million Phase I Expansion of the Russellville Logan Aluminum Sheet Rolling Mill by UACJ Corporation (Tokyo, Japan) is expected to see completion in late 2017. The expansion at the 300,000-ton-per-year mill comprises a new 280,000-square-foot building, improvements to the existing mill building and installation of supporting equipment producing 600 million pounds of cast ingot annually for processing at the mill. Recycled aluminum scrap will be used to produce the cast ingot. For more information, see Industrial Info's project report.
In Iowa, the $190 million expansion of Arconic's Riverdale Davenport Aluminum Works facility was recently completed. The project expanded operations with the installation of a new thick plate stretcher and other improvements. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
The Aluminum Association, whose members include Alcoa Corporation (NYSE:AA) (New York, New York), Arconic (NYSE: ARNC) (New York, New York), ABC Aluminum Solutions (San Diego, California), AlcoTec (Traverse City, Michigan) and others, filed the complaint with the U.S. Department of Commerce and the U.S. International Trade Commission (USITC). In January, the U.S. filed a complaint with the World Trade Organization (WTO) against what it perceives as unfair subsidies in China's aluminum sector. Industrial Info is tracking $5.98 billion of U.S. aluminum projects set to kick off between 2015 and 2017 that have been cancelled or on hold. For more information, see January 13, 2017, article - U.S. Makes WTO Complaint Over Chinese Aluminum Subsidies.
Thursday's action by the Aluminum Association marks the first time the trade group has filed unfair trade cases on behalf of its members, said association Chief Executive Officer Heidi Brock. The association alleges that Chinese producers benefit from 27 government subsidy programs. Antidumping margins range from 38% to more than 134% of the value of the imported aluminum foil, according to the group.
The complaint deals with imports of foil used in household foil, flexible and semi-rigid cookware, product packaging, automotive and heating, venting and air conditioning (HVAC) heat exchangers, among other common uses.
According to the Aluminum Association, U.S. production accounted for 84% of all domestic aluminum foil demand in 2004, but it now accounts for only 69%. At the same time, Chinese imports grew from roughly 0% of the total U.S. aluminum foil market to 22% of the market. Aluminum foil imports from China have grown by nearly 40% since 2014, and Chinese products accounted for about 71% of the total U.S. aluminum foil imports in 2016.
The Aluminum Association went on to say that Chinese foil imports have captured market share from third-country producers. The trade group expects the U.S. investigation into the complaints to take roughly a year.
The Trump Administration is taking aim at what it sees as unfair trade practices by countries such as China. Commerce Secretary Wilbur Ross said recently those found responsible for unfairly dumping products into the U.S. "should be punished, and severely." In addition, Ross said there will be a focus on steel and aluminum imports.
China, in the meantime, has ordered reductions in aluminum output during the winter heating season in order to curb pollution, according to news media accounts.
Despite the numerous U.S. aluminum projects that have been cancelled or put on hold, Industrial Info is tracking $1.87 billion in U.S. aluminum sheet, plate and foil projects that remain active.
Constellium France SAS's (Paris, France) $280 million expansion project at the Muscle Shoals, Alabama, aluminum alloys plant is currently expected to be completed in early 2020. The project will expand hot mill capacity from 450,000 tons per year to 700,000 tons per year. For more information, see Industrial Info's project report.
In Kentucky, the $240 million Phase I Expansion of the Russellville Logan Aluminum Sheet Rolling Mill by UACJ Corporation (Tokyo, Japan) is expected to see completion in late 2017. The expansion at the 300,000-ton-per-year mill comprises a new 280,000-square-foot building, improvements to the existing mill building and installation of supporting equipment producing 600 million pounds of cast ingot annually for processing at the mill. Recycled aluminum scrap will be used to produce the cast ingot. For more information, see Industrial Info's project report.
In Iowa, the $190 million expansion of Arconic's Riverdale Davenport Aluminum Works facility was recently completed. The project expanded operations with the installation of a new thick plate stretcher and other improvements. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
