The EU have set some provisional tariffs in Chinese aluminium imports
Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!
(Kitco News) - Reuters has reported this morning that the European Union has put some provisional tariffs on aluminium flat-rolled products from China after an initial investigation uncovered that they were being sold into the bloc at artificially low prices.
The duties are between 19.3% and 46.7%, the EU’s official journal said on Monday and the lowest rate will apply to companies of the Nanshan Group, such as Shandong Nanshan Aluminium Co. The Jiangsu Alcha Aluminium Group Co will face duties of 28.3%.
The initial investigation was made after a complaint from trade association European Aluminium, whose members include Norsk Hydro and Elvalhalcor. The investigation to date highlighted that Chinese exporters increased their share of the EU market from 6.2% in 2017 to 11.2% in the investigation period from mid-2019 to mid-2020, while prices declined by 9%.
As you can see from the weekly aluminium chart below the price has been moving in an uptrend recently. The previous resistance from early 2018 has now been breached after a brief test. Base metals have been on the rise for a while now and the price of aluminium is way above the 200-period moving average illustrating the power of the move.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.