An American trade association has brought a case against China Zhongwang Holdings, the Hong Kong-listed aluminium producer, alleging that it has evaded duties on exports to the US.
In a filing to the US Department of Commerce, the Aluminum Extruders Council alleges that the Chinese company “systematically and illegally” avoided payments by cutting and welding its aluminium extrusions into slabs so they would be classified as pallets — which are not subject to the same duties.
It is bringing the case at a time when aluminium producers are increasingly under pressure, with prices for the lightweight metal trading at their lowest in six years, amid a global surplus. China produces about half of the world’s aluminium, which is used in the construction, transport, and automotive sectors.