Some Aluminum Companies Are Forced To Withdraw From The US Market.

Following the South Africa, Canada and Australia, in April this year, the United States officially launched the "aluminum products for China".

For the results of the preliminary ruling, Guangya group said, "it is faster to achieve the desired results".

However, for the other South China Sea aluminum companies whose capacity accounts for China's 1/3, it means to withdraw from the US market or continue to appeal to the United States Court of international trade after final ruling.

"The most important thing is to take the initiative to deal with it.

In July 2007, South Africa launched an anti-dumping investigation on aluminum profiles. At that time, Guangya received a dumping investigation questionnaire from the customs union of South Africa, and finally won the zero tariff policy after becoming a working group.

In the US, Foshan's aluminum companies include Guangya, Guangcheng and Guanghai. However, Guang Guang has become a wholly owned subsidiary of Guangya and Guanghai is its subsidiary company. In other words, Guangya group is the only Foshan enterprise group to sue.

After learning about the US anti-dumping investigation, Guangya immediately set up a specialized anti-dumping investigation team, and hired lawyers to prepare for the sale cost, sales mode and sales price composition. On the other hand, it actively applied for the investigation.

Prior to that, the United States first selected the enterprises to be chosen as Zhong Wang aluminum profile Co., Ltd., MilandLuckLtd and Deco Limited. Therefore, it has been actively applying to be the object of investigation.

Huang Yongqing said that at present, the countries of Guangya aluminum export are all over the world, and the monthly export accounts for 30% of the total sales, of which the share of the US market is about 1/3.

Guangya's export volume to the United States is also one of the reasons why the United States chose Guangya.

In fact, this is not the first time Guangya has faced anti-dumping investigations.

As early as July 2007, South Africa launched an anti-dumping investigation of aluminum profiles. At that time, Guangya received a dumping investigation questionnaire from the customs union of South Africa, and finally won the zero tariff policy after becoming a working group.

After that, although Canada and Australia did not choose Guangya as the respondent for anti-dumping against China, however, the friction in international trade had not allowed the enterprises to have a "lucky" mentality.

Investigation standard or disadvantage to Chinese aluminum enterprises

The Canadian model is based on the consideration of China's market economy status, compared with the India standard of third countries, and excludes the production cost structure of the aluminum profiles enterprises; the South African model is based on the domestic standards of China, and the sales price of the aluminum profiles in the domestic market is the yardstick.

Data show that China is the largest exporter of aluminum materials in the world, and its share in the Alcoa market reached 20.1% in 2009.

According to the data provided by the US, in the 2007~2009 years, the aluminum imports from the United States increased by 90%, and the import volume in 2009 was about 514 million dollars.

According to the August labor market data released by the US government in September 3rd, the number of unemployed workers was 473000. Although there were no more than 485000 warning lines, the unemployment rate remained high.

The United States Fair Trade Commission and the United Steelworkers union, which applied for the investigation, believe that this directly affects the closure and reduction of aluminum companies and the unemployment of workers.

According to the analysis of the insiders, the high unemployment rate is likely to make the government tend to adopt more stringent trade protection measures in exchange for more voters' votes.

As a result, not only are aluminum profiles enterprises extended, but more industries may encounter the impact of US trade remedy measures.

"These are also the problems to be faced in economic and trade. No matter what the real cause of the" double opposition "is, enterprises must respond positively.

Huang Yongqing believes that the most important thing is that the quality and service of commodity manufacturing can support export prices, and the price of Guangzhou Asian exports is generally 15% higher than that of domestic sales.

In fact, low prices are not good for the enterprises themselves. At present, the auxiliary materials such as electricity price, wages and aluminum prices are rising. If the market is also acquired at low prices, then the enterprises will not be able to continue to develop.

According to trade experts, the US double anti investigation is Canadian standard rather than South Africa model.

Specifically, the Canadian model is based on the consideration of China's market economy status and the India standard of third countries, and excludes the production cost structure of the aluminum profiles enterprises. The South African model is based on China's domestic standards, and the sales price of the aluminum profiles in the domestic market is the yardstick.

At this point, it is unfavorable to China's aluminum enterprises.

It is understood that most of the aluminum companies are waiting for the final results of the US Commerce Department to be issued, and consider appealing to the International Trade Court of the United States, which may change the verdict.

Dealing with trade friction is a required course.

At present, including the Guangya, Weiye, Xingfa, Feng aluminum and other aluminum enterprises have submitted anti-dumping applications to the United States.

However, a small number of aluminum companies are unable to respond for various reasons.

As an important component of the "double counter" investigation, the initial anti-dumping rule was introduced in October 27th, and the countervailing final ruling will be made in November 21st.

At that time, punitive tariffs on China's aluminum enterprises will be combined with countervailing and anti-dumping measures, and the worst case will exceed 137.65%.

At present, including the Guangya, Weiye, Xingfa, Feng aluminum and other aluminum enterprises have submitted anti-dumping applications to the United States.

However, a small number of aluminum companies are unable to respond for various reasons.

An unnamed South China Sea local enterprise said that for the United States anti-dumping, the enterprise can not finally sue, mainly because the products exported to the United States are exported through the export agency, because the cooperative export company refused to provide relevant information, resulting in the enterprise can not prepare enough materials to sue.

Once the "double counter" campaign is defeated, the high tariffs will be enough for the aluminum companies to withdraw from the US market, which will directly affect the export volume of the aluminum enterprises.

Statistics show that in 2008, after Canada's "double anti" trade remedy case, Guangdong's aluminum export in 2008 dropped 64.6%. In June 2009, Australia launched a "double reverse" investigation on the export of aluminum, which led to a 24.6% reduction in exports of aluminum profiles in that year.

Of course, the reduction of exports is also related to other factors such as the outbreak of the financial crisis.

Taking Guangya as an example, the export volume has shrunk since the financial crisis in 2008, and it has just returned to the level of exports in 2007.

As for the international trade frictions, many aluminum enterprises have indicated that under the condition of gradual saturation of domestic demand, the impeded export really has an impact on the development of enterprises. Next, in addition to gradually docking with the international in terms of technology, management and product quality, it is also a compulsory course for enterprises to start the trade friction mechanism and effectively avoid trade risks.