ALUMINIUM producer and exporter Hulamin ’s request for a 10% duty on semifabricated, rolled products has been turned down by the International Trade Administration Commission of SA (Itac).
The commission said yesterday it found no evidence of a significant change in circumstances since its previous investigation of the industry, and its subsequent recommendation in 2008 for duties to be phased out.
Hulamin made the duty request in March, ostensibly to increase competition in the sector. But downstream importers of the metal — which are members of the Aluminium Federation SA — said the application would have the opposite effect.
In 2008, the commission found the existing 10% duty on aluminium rolled products should be phased out by January next year, because of Hulamin’s pricing advantages, and the cost effect on downstream players.
The commission also said yesterday the rolling- slab supply agreement between Hulamin and BHP Billiton had been extended, and that BHP Billiton had not made a decision to shut down its mill, as feared by Hulamin.
Hulamin also cited the strong rand and electricity price increases in its application.
"We received the ruling and we’re disappointed," its corporate affairs executive, Hector Molale, said yesterday.
Hulamin is SA’s only producer of rolled aluminium products, used widely in the building, packaging and automotive industries.
In the past 10 years capacity has undergone major expansion.
"I believe this is a most important decision of Itac as it also sends a strong message to other industries dominated by one or two major local producers of semifinished products, such as the steel industry," Volker Schütte, MD of Metal and Tool Trade, said yesterday.
豫公网安备41010502003434号