Over the last few weeks the Aluminum Extruders Council
(AEC), its members, and leadership have made their voice heard in the Trade
Promotion Authority (TPA) bill making its way through Congress. Adding our voice to manufacturers all across
the country from the steel, solar panel, and tire industries (just to name a
few), we aim to have the pending Customs Bill amendment adding to the historic
TPA legislation. As I write this month’s
entry, AEC members and leadership are phoning, faxing, and emailing their
elected officials asking for their support.
Hopefully, by the time you read this update, the results will be in, and
we will have impacted a huge win for our industry and domestic manufacturing.
Of course, that effort is only part of the agenda being
advanced by the AEC. The Department of
Commerce (DOC) issued its decisions regarding IKEA’s cabinet/drawer handles and
IKEA’s towel racks. The Department found both sets of products to be in-scope
merchandise. IKEA’s handles were each comprised exclusively of a single piece
of extruded 6xxx-series aluminum alloy and packaged with steel screws and nuts
for attachment onto a cabinet or drawer face.
This decision reinforces earlier precedents set by the DOC regarding
extruded parts packaged only with a few fasteners.
In late April the Chinese government issued a statement
removing export duties on certain alloyed semi-fabricated products including
rod and bar. While this should have no
direct impact in markets where trade protection exists for extruded products,
it does raise concerns about the growing supply of aluminum in China, and how
they intend to exhaust it. Even while
the Chinese economy shows signs of slowing its meteoric economic growth,
production has not been curtailed.
Forced to find a home for this production, the Chinese continue to incentivize
downstream manufacturers to fabricate the metal for export. Another clear example is the recent
announcement by Chinese extruder Guangdong Xingfa Aluminum Holdings, which
plans to expand aluminum extrusions capacity to 500,000-tpy. This comes at a time when Chinese extruders
continue to operate at 30-40% of their capacity. As reports of Chinese exports into third
party countries mount, new allegations of circumvention of the U.S. trade
orders are growing. While difficult to
draw a direct link, several investigations are underway that could lead to more
indictments.
Finally, the DOC’s third annual review of our case is well
underway. A preliminary decision is
expected in late June or early July. We
continue to argue for a surrogate country that is very close in its economic
development to China. Further, we have
made our case known that if a curtain wall company seeks a special duty rate,
then all input costs must be calculated including glass. These are key issues for us in this cycle.
Next month, I will be heading to Washington D.C. for my final
security clearance and first International Trade Advisory Committee (ITAC)
meeting. As you may recall, ITAC is a
group of committees that represent U.S. industry interests and advises the
United States Trade Representatives (USTR) office on trade policy. I will represent the AEC on committee nine,
which deals with non-ferrous and building and construction products. This represents another big step forward for
our industry in making its positions known, and its voice heard. Once again, thank you for your continual
support as we work together to build and defend the aluminum extrusion
industry.
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