Aluminium producers in India are asking their government to introduce anti-dumping duties of 15% on imports from China and West Asia.
Aluminum producers are clearly concerned about growing imports of aluminum from China and West Asia and, with the support of the Aluminium Association of India, urged the government to impose safeguards on imports of aluminium.
TK Chad, director of the National Aluminium Company presented their requests: We asked for the introduction of anti-dumping duty of 15% on all imports of aluminium from China and West Asia for the year 2016 and 2017. We ask immediately for the existing duties on imports of aluminium to be raised from 5% to 10%. We explained our concerns and demands to the Minister of Finance, and he mostly agreed with everything. "
India increased imports of aluminium by 1.5 million tonnes every year, which decreased the share of domestic production to below 50%. In the period of 2010-2011 domestic manufacturers produced 60% of the aluminium on the market and in the last period of 2014-2015. this proportion fell to just 45%, with a further downward trend.
Except for the low cost of aluminium, Indian manufacturers were influenced by the high price of coal, which ncreased by almost 25%is in the past three years. It should be noted that unlike many of its competitors, domestic manufacturers do not receive any government subsidies.
Globally, the market is in a cycle of low prices. Demand has decreased, the market remained sluggish. The price of aluminium on the London Metal Exchange is around 1,545 US dollars per ton, and that does not even cover the basic production costs.
The aluminium sector in India, therefore, does not see a bright future without the help of the goverment. The weakening of the Chinese economy has shifted the majority of cheap products on the world market, which led to a global decline in prices. The increased availability of cheap aluminium in the Indian market without adequate demand will keep low cost for longer time.