Australia to hit Chinese aluminium with 70% tariffs

• The Trade Remedies Commission proposed tariffs of up to 70.4% on Chinese aluminium windows and doors following dumping findings.
• The investigation revealed local producers suffered $350 million in price undercut losses and $72.6 million in lost sales.
• The Australian government aims to protect domestic manufacturers from subsidised foreign competition distorting the $2.8 billion market.

The Australian Trade Remedies Commission has recommended preliminary tariffs of up to 70.4% on Chinese aluminium window and door imports after finding dumped products caused material injury to local producers.

Chinese exporters captured a 19% share of Australia's $2.8 billion annual aluminium window and door market, backed by state intervention and submarket bank loans.

"These findings are an encouraging step towards fairer competition, giving local businesses greater confidence to keep investing in their people, their products and the customers they serve," said Capral General Manager Barry Lunn.

Penalties for cooperating Chinese firms will range from 5.3% to 51.6%, while non-cooperating exporters face the maximum 70.4% tariff.

The proposed tariffs require formal adoption by Industry Minister Tim Ayres before taking full legal effect.

The federal government previously pledged $4.7 billion to support struggling Australian metal smelters, including electricity assistance for Rio Tinto (ASX:RIO) assets.

Meanwhile, global London Metal Exchange benchmark aluminium prices dropped 9% over the past month to US$3008 a tonne.