Aluminium products supplier Hulamin has lauded a 15% import duty on aluminium rolled products into SA, which came into effect in 2021.
In an operational update for the fourth quarter of 2020, Hulamin, which is headed by CEO Richard Jacob, said its performance continued to improve as markets stabilised following disruptions caused by the pandemic.
Hulamin Rolled Products sold almost 46,000 tonnes and 185,000 tonnes on an annualised basis.
Hulamin Containers and Hulamin Extrusions businesses performed better than expected and contributed positively to the overall performance of the group.
"In line with aluminium trade actions throughout the Western world, most notably in the US and EU, the SA government announced late in 2020 that a 15% import duty on rolled aluminium products would be imposed from January 2021," it said.
It said that with the major international markets now having significant duty barriers, most notably the US, EU and Japan, competition from low-cost countries has targeted unprotected markets such as SA.
Following more than 24 months of consultation with the full range of local stakeholders, the International Trade Administration Commission (Itac) has now ruled that Hulamin has faced significant hardship as a result of unfair competition, the company said.
"It is noteworthy that importers will be able to continue to trade free of duty from countries located within the four existing free trade agreements, including the EU and SADC," it said.
Order books in Hulamin Rolled Products and Hulamin Extrusions continued to remain full through the fourth quarter of 2020, while forecasts have shown firm demand in the short term.
Local demand for rolled products has improved since the duty announcement in late December.
Debt increased in 2020 following the slowdown in business activity, in spite of a significant reduction in capital expenditure.
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