As per a report by the Aluminium Association of India (AAI), import of aluminium scrap in India increased by 22 per cent to 7,73,000 tonnes in April to October 2018 period. In view of this, the associated has again demanded increase in import duty on aluminium, to protect the interest of the domestic companies.
In the corresponding period of 2017, the aluminium scrap import was recorded at 6,32,000 tonnes. The AAI report states that Indian aluminium sector can become a ‘victim of escalating trade war between the US and China’, if the import duty is not increased.
In March 2018, US President Donald Trump announced tarrif of 25 per cent on import of steel and 10 per cent on import of aluminium. China also announced an import duty of 25 per cent on several commodities from US, including aluminium scrap.
The AAI report states that in this global scenario, the local industry is facing a threat, as excess aluminium in global market is finding its way into the country.
AAI has asked the government to increase duty on aluminium scrap as well as primary aluminium to 10 per cent, which is in line with other non-ferrous metals such as zinc, copper, nickel, tin and lead.