NEW DELHI: India is likely to retain anti-dumping protection on a broad range of aluminium products, with the Directorate General of Trade Remedies (DGTR) recommending five-year extensions of duties on certain flat-rolled aluminium products from China and aluminium foil of 80 microns and below from China, Indonesia, Malaysia and Thailand.
The two sunset reviews flagged continuing concerns over low-priced imports, excess production capacity in major exporting countries and the risk of renewed pressure on Indian aluminium producers if the duties lapse. The recommendations would require formal notification by the Central Board of Indirect Taxes and Customs (CBIC) under the finance ministry.
In its final findings on flat-rolled aluminium, DGTR concluded that expiry of the existing duties on Chinese imports was likely to result in continuation or recurrence of dumping and injury to the domestic industry, and recommended extending the measure for another five years. The existing duty, imposed in December 2021, is due to expire on December 5, 2026. Most Chinese suppliers would face a $449-per-tonne duty under the recommendation.
In a separate final finding, DGTR recommended continuing anti-dumping duties for five years on aluminium foil of 80 microns and below from China, Indonesia, Malaysia and Thailand. The existing duties stem from earlier investigations, including measures imposed in 2017 and subsequently extended or modified.
For China, the proposed duties range from $506.81 to $976.99 per tonne, while Thailand faces rates of $93.53 to $339.93 per tonne. The recommended rates for Malaysia and Indonesia are $850.45 and $422.28 per tonne, respectively.
DGTR said evidence indicated that dumping and injury were likely to continue or recur if the measures expired. It also found that the domestic industry had improved under the protection, with new producers entering the market, additional capacity being developed and manufacturers diversifying into higher-value specialty products. However, continuing low-priced imports, particularly from Thailand and China in relevant segments, had contributed to pressure on domestic prices and profitability.
The foil is used in pharmaceutical and food packaging, household foil, cigarette and tobacco packaging, semi-rigid containers, and capacitor and battery applications.
The flat-rolled aluminium review also highlighted excess Chinese production capacity and trade restrictions in major markets, including higher US aluminium tariffs and the European Union’s Carbon Border Adjustment Mechanism (CBAM). DGTR expressed concern that these developments could increase the risk of diversion of exports to India.
Both reviews included exclusions for specialised products to address downstream supply concerns. DGTR also found that the impact of the flat-rolled aluminium duty on identified downstream applications was below 1%, except for pressure cookers, while the impact of the foil measure on consumers was considered insignificant.
Source: The Financial Express
