The USA to suspend customs duty on Chinese aluminum

In August 2020, the European Commission launched an investigation into flat rolled aluminum products, which have different uses in many sectors, from construction to transportation and durable consumer goods, and decided to apply additional customs duties of 19.3 percent to 46.7 percent in April 2021. The final customs duty, expected to range from 14 to 25 percent, would be in effect for five years from October. However, according to the statement made by European Aluminum, these customs duties will be suspended for nine months upon the complaints of the two aluminum users and the importer in the union.

The Commission said that the investigation is still ongoing and that if there is a required customs duty, it will be implemented from 11 October, but stated that it will discuss and evaluate the suspension proposal with EU member states.

Gerd Goetz, Director of the industry organization European Aluminum, said in a written statement that the additional customs duty decision created a shock wave in aluminum and other industrial sectors and said, “If we are willing to open the doors to Chinese products with high carbon emissions, how can European sectors rely on urgently necessary trade transformation measures”. The last time the Commission made such an exception to customs duties was in 2009.

Like many commodities, aluminum prices rose as economies opened and improved. However, the European Union's industry organization, European Aluminum, is of the opinion that the EU has enough supply to support the domestic market and the profit margins of the industry are already tight.

Aluminum price away from 13-year high

Saxo Bank analyst Ole Hansen says the price rally led by metals like aluminum and nickel is taking a breather as the wheels slow down in China. China's aluminum production fell for the fourth month in August, falling to 3.16 million tons. The metal's futures contract on the London Metal Exchange, which rose above $3,000 for the first time since 2008 due to supply concerns, fell by more than 2 percent to $2,831/ton yesterday.