According to the British “financial times” reported on August 26, when the U.S. government for four years ago China Zhongwang Holdings co., LTD. (China Zhongwang Holdings) anti-dumping duties, the world’s second largest aluminium producers in China’s booming domestic market found the compensation.
Zhong wang today’s profitability is the highest in the aluminum product manufacturers around the world. However, along with a position and a major change in the light metals market, global market began to zhongwang review. Large aluminium poured out of China and the impact on the world market, this makes zhong wang and other aluminium producers in China focus, whose success could lead to new China and the United States trade tensions.
Late last month, a previously unknown to public, called Dupre Analytics short-seller report, accusing zhongwang by chairman Liu Zhongtian control false sales of aluminum, in order to defraud tax rebates from the Chinese government. The agency said the aluminum in the overseas sales at below cost price, led to the aluminum too much backlog.
Zhong wang’s announcement, said the report “no facts according to”. The company will be in the Hong Kong stock exchange (a bit) listed shares were suspended, and refused to make any further comment on the report.
Can not contact reporter Dupre Analytics to comment. The agency’s web site can be traced back to a located in Austin, Texas (Austin) address, but did not leave any contact information.
The global aluminum industry is worth $100 billion, these charges are mounting part of the battle for dominance. The industry for automotive, cans, plane and Watch all sorts of equipment, such as Apple (Apple Watch) – provide metal materials.
Today, China accounted for more than half of the global aluminum supply, while only 18% in 2003, the growth thanks to cheap power and built aluminum smelters in the world’s most efficient manner. In the face of financial crisis since the lowest prices and profit margins and profits slid in, from North America, Russia to the Middle East, the veteran aluminum manufacturers are very anxious, but due to fear of loss of market share, they are not going to cut capacity.
Cheap hydropower and the neighbouring xinjiang desert in central Asia region detection of new mines, let the smelting capacity in China has greatly increased. According to Goldman Sachs (Goldman Sachs), a short span of four years, China Hongqiao (China Hongqiao) from China’s fifth largest producers, until the end of 2014 to develop into the world’s largest producer.
Cash-strapped local governments are reluctant to close the factory, has just completed, so we can not sell in China must find aluminum exports.
Alcoa chief executive Klaus Kleinfeld (Klaus Kleinfeld) in July, said: “they avoided the 15% of China’s export tariff (aluminium), got 13% of the value-added tax rebates (downstream aluminum products). And they directly compete with western aluminium.
The key point is that these people tend to exaggerate the price, for more value-added tax rebates. What are “Klaus kleinfeld, without naming specific companies.
Once finished products from China (in the process that producers get tax rebates), it is certain to be sold. Channel is one of the finished product remelting into aluminium can be traded in London metal exchange. The second method is to aluminum products sold to the United States, the huge American market to absorb the low price of aluminum products.
According to a market participant, so Chinese manufacturers can purchase aluminium, low price slightly processed exports.
Zhongwang way to last when it comes to the industry insists: “from the point of view of aluminium producers, the export products meet the requirements of all policy, does not violate any law.”
Industry executives estimate that remelting metals makes cost increase by around 4%, but the VAT tax refund more than profit to offset the cost increases.
The American association of aluminum extrusion materials (Aluminium Extruders Council) chief operating officer Jeff? Henderson (JeffHenderson) said: “in China’s exports to the United States in the process of aluminum extrusion products, we have seen some very strange behavior, and we are very worried about their one thousand tries to penetrate the United States.”
Producers such as the United States to zhongwang shipment slapped anti-dumping duties on aluminium products, the results prove that did not stand too big obstacle, because of the anti-dumping duty applies only to a limited product range. Some American importers of aluminium products. In 2013, a federal grand jury verdict five purchasing aluminum from China, they use false invoices in Malaysia to repackage the aluminum, and then import these goods from Puerto Rico. In the same year in Ohio, was fined $1.1 million a importer, the reason is that fake customs file import aluminum extrusion materials in China.