India proposes anti-dumping duties on aluminum foil from China

By Metal miner

This week brought news of yet another anti-dumping proposal against China. This time, a department under India’s Ministry of Commerce and Industry has proposed imposing an anti-dumping duty on aluminum foil imports from China. This follows multiple complaints from members of the domestic aluminum industry about cheap foil flooding the market.

Aluminum foil is used as a packaging material for preserving and preserving food products. According to one the foil market Directorate General of Trade Remedies (DGTR) study, imports from China have taken at least 30% of India’s local market share despite there being sufficient domestic production of aluminum foil.

The anti-dumping probe dates back to March

India’s original investigation began in March 2024 after complaints from Indian producers, including Hindalco, one of India’s largest aluminum producers. Countries often conduct anti-dumping investigations to find out whether an influx of cheap imports is harming local industries. The Ministry of Finance then decides whether to apply taxes. The tax proposed by DGTR is between $619 per ton and $873 per ton.

Meanwhile, China’s exports of aluminum foil have increased since the beginning of 2024. According to a report According to the Shanghai Metals Market survey, exports were 130,100 tonnes in May this year, up about 7% month-on-month (stay tuned for how market changes like this affect the link from the bottom of your company with MetalMiner’s weekly newsletter). India, along with Indonesia, Thailand and even Mexico, are some of the countries seeing an influx of these Chinese exports. Of China’s total annual aluminum foil exports, 60% went to top ten destinations such as India.

Thailand recently launched a probe of its own

In fact, a few months ago, the Department of Foreign Trade in Thailand initiated a similar one anti-dumping probe on extruded aluminum from China. This came after domestic manufacturers complained about cheap imports destroying their economy.

The Thai government has already imposed anti-dumping duties and import caps on steel products from countries such as China, Taiwan, Japan and Vietnam, and has now begun investigating imports of extruded aluminum from China. According to media reports, if they find the complaints true, more duties will be announced for the next five years.

In the case of India, the Ministry may face a dilemma. Some companies told the DGTR that the introduction of a new anti-dumping duty could hurt downstream manufacturers as they would not be able to source high-quality material on time. They also warned that such a move would create a monopoly. Furthermore, the decision is expected to have an adverse effect on the flexible packaging industry in India.

Incidentally, the Indian government recently mandated that all new products contain at least 5% recycled aluminum from the 2027-28 fiscal year. This will undoubtedly affect non-ferrous sectors such as aluminium, copper and zinc

While China may have reported an increase in aluminum foil exports this year, in the long term, many producers continue to report insufficient growth in monthly orders. Some experts even forecast that the country’s foil exports could decline after August has passed.

China’s aluminum industry reaches record production levels

China’s primary aluminum output is nearing record levels from last year as previously idle capacity in Yunnan province comes back online. According to the International Aluminum Institute, production rose 5 percent year-on-year to 3.65 million metric tons in May.

National production is now close to 43.0 million annualized tonnes, approaching the highs recorded in September and October. Conformable Reutersimproved rainfall in Yunnan has eased power shortages, allowing local authorities to lift operating restrictions and restart about 1.15 million tons of capacity that shut down last November.

By Sohrab Darabshaw

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