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The Brazilian government will impose trade sanctions on aluminum imports from vendors in the People’s Republic of China. According to an announcement by the Chinese Ministry of Commerce last week, the Brazilian government will begin imposing countervailing duties at the end of March on aluminum sheet products exported from China.
The Brazilian government plans to maintain import duties for five years at levels ranging from 14.88 percent to 14.93 percent. Customs records indicate that Brazil took in 9,520 tons of aluminum sheet in the first eleven months of 2022, totaling $36.81 million. Last year, Chinese manufacturers sent 12,720 metric tons of aluminum sheet to Brazil, with a total value of $38.98 million.
Brazil is just the latest in a long line of countries and trading zones that have moved to restrict access to Chinese aluminum exporters. Chinese aluminum producers have long been accused of receiving state aid that allows them to produce aluminum products at much lower costs. As a result, jurisdictions around the world have seen fit to erect trade barriers to Chinese aluminum imports, accusing importers of flooding local markets and depressing values.
Trade barriers have done little to push China to reduce production, as industry experts expect aluminum production to increase in the coming months. Aluminum production in China is expected to increase due to the easing of electricity rationing and increased demand from the global economy post-COVID-19.
