November 8, 2016 / 6:12 PM / 2 years ago

UPDATE 1-China Zhongwang: US says company flouted aluminum dumping rules

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Nov 8 (Reuters) - China Zhongwang Holdings Ltd said the U.S. Commerce Department found in a preliminary determination that some aluminum exports by the company to the United States flouted anti-dumping restrictions imposed in 2010.

The Commerce Department initiated the investigation into China Zhongwang last year after the U.S. Aluminum Extruders Council alleged that the company evaded U.S. import tariffs on aluminum extrusions.

The U.S. extrusion industry’s complaint asked the government to clarify that pallets and 5050 alloys are subject to the antidumping and countervailing duties introduced in 2011.

China Zhongwang said it did not participate in the voluntary probe as it had stopped production of the aluminum products nearly two years ago.

The Commerce Department’s determination has no impact on the company’s sales and operations, China Zhongwang President Lu Changqing said.

Changqing said the company exported an “insignificant” amount of 5050 extrusions - in response to customer requests between 2013 and early 2015.

China Zhongwang is the world’s second-largest producer of aluminum extrusions - the process of shaping aluminum by forcing it to flow through an opening in a mould to make products for use in industries ranging from electronics to aerospace.

The exports made up less than 0.1 percent of the company’s total sales over that period, Changqing said.

The Commerce Department could not immediately be reached for comment.

Upstream smelters and downstream extruders in the United States have both argued that subsidized Chinese aluminum production has depressed global prices and presented unfair competition.

Dumping occurs when a manufacturer sells products at lower prices in foreign markets than what it charges in its home market, or when the imports are sold at prices below production costs.

Over the past year, Europe and the United States have accused China of exporting its excess aluminum and steel production, pressuring global prices. (Reporting by Ismail Shakil in Bengaluru; Editing by Saumyadeb Chakrabarty and Anil D’Silva)

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