DGTR recommends anti-dumping duty on Chinese aluminium foil

DGTR has recommended imposing an anti-dumping duty on aluminium foil imported from China, following a surge in shipments from the country. The level of the provisional anti-dumping duty ranges from US$ 653 to US$ 873 per metric tonne.

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The Directorate General of Trade Remedies (DGTR) has recommended imposing provisional anti-dumping duties on aluminium foil imported from China, following complaints from domestic producers, including Hindalco. Aluminium foil is used extensively as a packaging material for the conservation and preservation of edible products.

The proposed duties range from US$ 653 to US$ 873 per metric tonne, depending on the specific Chinese producer. The Ministry of Finance will make the final decision on this recommendation. 

The investigation, initiated in March, focused on aluminium foil up to 80 microns in thickness, excluding foil below 5.5 microns for non-capacitor uses. The period of investigation was from October 2022 to September 2023. Previously, anti-dumping duties on aluminium foil from China were imposed in 2015 but expired in March 2022. Post-expiry, domestic producers reported a surge in dumped imports from China, which they claimed caused significant harm to the local industry. 

The investigation by DGTR confirmed that Chinese aluminium foil, priced below normal value, dominated the Indian market, accounting for 30% of the total market share despite the domestic industry having adequate capacity to meet demand. During the period of the anti-dumping investigation, the domestic producers had a combined capacity of 132,140 MT and a total production of 69,572 MT.

Domestic consumption of aluminium foil during the review period, increased by 106% but imports from China surged by 178%, whereas Indian producers’ sales grew by only 29%. This influx of low-priced imports undercut domestic prices, forcing local producers to reduce their prices below production costs, leading to losses and adversely impacting their growth in terms of volume and price. The investigation excluded specific types of aluminium foil, such as those used for beer bottles, insulation, and tea bags, from its scope. 

The DGTR found that the surge in Chinese imports and subsequent market dynamics significantly harmed the Indian aluminium foil industry, justifying the proposed provisional duties.