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Stainless Espresso: South Africa, EC includes EPA country in Safeguard measure
Stainless Espresso: South Africa, EC includes EPA country in Safeguard measure

22 April 2022 – EC includes EPA country South Africa in Safeguard measure. South Africa receives its own TRQs. Aluminium with false origin information? The US customs authorities have gathered enough evidence of origin misrepresentation to initiate an AD/CV duty avoidance proceeding against aluminium sheet from China, according to recent reports. The e-car boom is driving up the battery metal prices of lithium, cobalt and nickel. And aluminium billets and alumina in China are in short supply.

E-car boom drives battery metal prices

Lithium prices have exploded since April 2021. In China by more than 450% year-on-year. The background to this is, among other things, the e-car boom and the green transformation. Current battery models rely on lithium as a raw material alongside nickel.

The price of nickel went up by more than 100% year-on-year. The price of cobalt rose by almost 60%. Prices for lithium-based batteries have almost doubled in China since the beginning of 2021. Lithium-ion batteries are not only used in e-cars, but also in mobile phones, notebooks, power tools, garden tools and light decorations.

Urgent need of new mining capacities for litihum

The exploding lithium prices have recently also caused concern among Tesla boss Elon Musk, who warned that there is an urgent need to invest in new mining capacities for lithium. There is a gaping hole between supply and demand.

Aluminium billets and alumina in short supply

Aluminium billets for further processing in China are becoming scarcer. Increased demand, but also Corona-related lockdowns, restrictions in logistics and in the supply of raw materials are causing problems for the aluminium industry there and have caused stocks to fall by more than 11%.

According to market sources, some Chinese aluminium smelters have recently been unable to meet their full demand for aluminium because the raw material was simply not available.

Aluminium: Customs authorities see evidence of origin fraud

As one reads in the relevant media, attempts are repeatedly made to change the actual origin in a questionable manner in order to avoid possible punitive duties.

Evasion of AD/CV Duty Orders on Aluminum Sheet from China

For example, U.S. Customs and Border Protection recently gathered enough evidence to initiate an AD/CV duty evasion proceeding on aluminium sheet from China that had been declared with a false origin.

China in focus of market protection measures

The US government had already made it a condition in its last trade agreements regarding Section 232 duties on steel from the European Union or Japan that it would only allow imports with 100% EU or Japanese origin into the country.

EU also cracks down on origin fraud

The European Union also recently imposed punitive duties on Malaysia in an AD case concerning aluminium from China, because material from China had been declared with the origin Malaysia.

Knowing which Origin to buy from

A logistics expert told us that this is tried again and again. However, the customs authorities have become better and better at uncovering such cases in recent years. Therefore, one should know through whom one buys which origin.

EC includes EPA country South Africa in Safeguard measure

The European Commission published on Friday, 22 April 2022, that South Africa has been included in the EU Safeguard measure and will receive its own tariff rate quotas as of 1 May 2022. The background to this is the WTO Safeguard provisions and the fact that imports from the EPA countries including South Africa have increased significantly during the observation period.

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