Network Metals LLC

In a bid to further control Chinese imports into Australia, the Australian government is studying
the institution of anti-dumping measures against Chinese manufacturers of aluminum extrusions. The Chinese have recently lost this battle to the Canadian markets, and this could create further damage to their overall strategy of exporting the majority of Chinese finished materials. The Chinese are considering countermeasures to increase the export rebate to aluminum extrusion producers to 17% from the already historic highs of 15%.

This is another example of 1) not enough Chinese domestic demand to consume the output of extrusions, and 2) the Chinese government's methods for stimulating their economy at the expense of western world manufacturing operations. The US has in the past instituted import duties on steel products in order to protect domestic steel mills. There is a silent trade war brewing between China and the rest of the world, and the only thing that can calm the parties is an increase in Chinese domestic demand - which we are not yet seeing.