December 23, 2021 – The European Commission yesterday, Wednesday 22 December 2021, published new market protection measures (AD/CVD) against imports of Chinese aluminium foil. Several European aluminium smelters are cutting production due to high energy costs. And aluminium prices are showing strength at the end of the year with a stable outlook for the first quarter of 2022.
EU aluminium smelters cut production
Several European aluminium smelters have cut production in recent weeks due to sharp increases in energy prices. The higher energy costs have recently pushed up aluminium prices on the LME and also the SHFE. On Wednesday, the futures on the LME briefly exceeded the $2,800 per tonne mark and are still trading just a few dollars below it.
Aluminium outlook for Q1 2022
Demand for aluminium remains high, supply is tight due to ongoing production cuts in China and there is a not insignificant pandemic and demand-related backlog. It is estimated that the aluminium shortfall in 2021 was around 1.5 million tonnes. This is likely to keep prices high in the first and probably also the second quarter. But beyond that, everything else is speculation – especially in view of the situation between Nato and Russia in the smouldering Ukraine conflict.
EC imposes anti-dumping duties on Chinese aluminium foil
Yesterday, Wednesday 22 December 2021, the European Commission published market protection measures against imports of Chinese aluminium foil. The decision had already been taken on 17 December.
AD and CVD against imports of 7607 11 19
The measures specifically concern aluminium converter foil of a thickness of less than 0.021 mm, not backed, not further worked than rolled, in rolls of a weight exceeding 10 kg, currently falling under CN code ex 7607 11 19 (TARIC codes 7607111960 and 7607111991) and originating in People’s Republic of China. Approximately 82,000 tonnes of annual imports into the European Union are affected by these new measures.
Definitive countervailing duty
The definitive countervailing duties for aluminium converter foil range from 10.1% to 18.3%.
Definitive anti-dumping duty
The definitive anti-dumping duties for aluminium converter foil range from 6% to 28.5%.
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