China's aluminum extrusion companies repel the US "double reverse" survey

"If the United States finally cancels the countervailing duty on China's aluminum extrusions, it will be of great benefit to the aluminum industry in China. Aluminum profile companies are expected to reopen the US market," analysts told reporters yesterday.

Previously, China's aluminum extrusion companies were gradually losing the US market due to the US "double reverse" investigation. Many aluminum companies in the United States have been shrinking in the US market.

In the first half of last year, China's aluminum extrusion companies received the “Double Counter” investigation documents from the United States. The U.S. Department of Commerce had announced that, on the application of the U.S. Steel Workers’ Federation and the American Aluminum Fair Trade Commission, it had decided to conduct a “double counter” investigation on aluminum profiles originating in China.

In March of this year, the U.S. Department of Commerce finally ruled to impose an anti-dumping tariff of 33.28% and a countervailing duty of 374.15% on the company's exports to the United States.

This has caused huge losses for the domestic aluminum profile production enterprises. Affected by this, China's largest industrial aluminum extrusions manufacturer Zhongwang suffered a sharp decline in net profit last year. In 2010, the Group's revenue and profit attributable to shareholders were 10.52 billion yuan and 2.60 billion yuan, respectively, a decrease of 24.0% from 2009. And 26.4%. In the first nine months of this year, the company's product gross margin was only 19.9%, a year-on-year drop of 24%, and net profit also fell 74% to 670 million yuan.

According to analysts, the United States has always been the major export market for aluminum extrusion products in China, and about 30% of the country’s domestic aluminum export market has been exported. Since the United States implemented the “double reverse” policy on domestic aluminum extrusion products, the number of domestic aluminum exports to the United States has decreased significantly. obvious.

China Zhongwang is certainly no exception. Affected by the "double reverse" investigation, China Zhongwang's aluminum exports have dropped substantially. In the first quarter of last year, the company’s revenue from exports of aluminum profiles to the United States and Australia accounted for 51.7% and 19.7% of the company’s total sales, respectively, but this proportion has dropped to 0.9% and 3.6% respectively in the first quarter of this year.

The "double reverse" tax rate for aluminum profiles is extremely high, mainly because domestic aluminum profile companies have received "double reverse" investigation documents, and few companies have responded. For reasons that should not be appealed, China's aluminum extrusion companies believe that due to previous failures of aluminum companies in Canada and Australia to respond to the “double counter” investigations, due to the need to complete the company’s commercial information, in order to avoid disclosure of trade secrets, Decided to choose not to sue.

This means that aluminum extrusion companies have given up the United States market. After abandoning the U.S. market, aluminum extrusion companies generally began to increase sales efforts in the domestic market.

At the same time, due to the impact of domestic macro-control, domestic sales have not increased as they did last year. Some aluminum extrusion factories directly stated that the real estate regulatory policies will directly reshuffle the aluminum profile industry.

Therefore, analysts believe that if the United States suspends the temporary countervailing duties on aluminum products imported from China, it will inevitably stimulate domestic primary aluminum consumption and promote aluminum prices, especially for domestic aluminum profile manufacturers. The heartbeat, because of the state's policy on real estate, has affected the demand for aluminum.