Last week, the U.S. Department of Commerce announced it would “self-initiate” an investigation into Chinese aluminum sheet imports into the United States.
The “self-initiated” investigation (i.e., without being petitioned but based on analysis gathered in cooperation with the U.S. Aluminum Association) will specifically look at Chinese government subsidies that promote Chinese products to be sold at less than market value in the United States. According to the Aluminum Association, the 2 billion pounds of common alloy sheet (1xxx, 3xxx and 5xxx series) that enter the United States represents about 10 percent of U.S. demand. It is estimated that the investigation could result in more than $600 million of anti-dumping duties. The investigation could take a year to complete. It is uncertain how this will impact the recycling industry other than to potentially drive up costs, but we welcome members’ insights – please contact Adina Renee Adler with any insights or if you have any questions.