Company Interview / Anti-dumping measures to protect the aluminium sector

Key bullet points:

- Federal government extends anti-dumping measures on aluminium extrusions from China for five years

- Ongoing dumping behaviour by Chinese exporters impacts local industry (ASX:CAA)

- US tariffs on Chinese aluminium could change trade flows into Australia

- Recovery in residential construction sector expected to benefit domestic aluminium industry

The federal government’s extension of anti-dumping measures on aluminium extrusions from China will last another five years, according to Luke Hawkins from Capral. Hawkins sees this move as significant for Australia’s domestic aluminium industry, ensuring a level playing field against imported products. The anti-dumping regime remains crucial, imposing tariffs to bridge the price gap between local products and cheaper exports from China. Existing since 2010, these measures are approved by the WTO and have repeatedly been extended in response to ongoing dumping behaviour, which Hawkins says has persisted and even intensified.

Hawkins highlights that increased US tariffs on Chinese aluminium have affected global trade flows, potentially sending more dumped product to Australia. Although it’s too early to quantify changes in volumes, he points out that South-East Asian suppliers may redirect exports to the Australian market as a consequence of US barriers. For Capral’s operations, direct exports to the US remain negligible, but the company’s primary concern is the potential impact of redirected imports rather than direct competition.

Looking to the future, Hawkins expects the extension to provide stability for local producers, especially amid high energy costs and global competition. He notes signs of recovery in residential construction, particularly in Western Australia, with broader sector improvements anticipated into 2026.