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- India has overtaken China as the preferred destination for aluminium scrap with imports growing 18.8% in the January-March 2019 quarter compared with the same quarter of the previous year.
- The imports has increased due to a trade war between China and the U.S.Trade war is a situation where countries restrict each other’s trade by imposing tariffs or quotas on imports.
- The U.S. had imposed an import duty of 10% on aluminium in March 2018 and in response China too had implemented a 25% duty on the import of aluminium scrap.
- Further,China has not only put the duty on U.S. scrap but they are also classifying aluminium scrap as a restricted import which will be implemented from July 1,2019.
- This has led to the aluminium scrap being diverted and dumped in India.The surge in import of scrap has also led to the Indian domestic industry losing its market share.
- In this situation,the Aluminium Association of India has requested the government to increase customs duty on imports to up to 12.5%.At present,the duty varies from 2.5% to 10%, on products such as primary aluminium,scrap and downstream products.
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