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(Wallace Refiners) – 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.
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