OQ-owned OARC to contest US anti-dumping measures

MUSCAT, APRIL 17

Oman Aluminium Rolling Company (OARC), a wholly-owned subsidiary of Oman’s integrated energy group OQ, has vowed to challenge anti-dumping penalties imposed by the US Department of Commerce on its exports into the United States.

The Suhar-based rolling mill, set up in 2011 with an initial investment of $385 million, manufactures aluminium coils of various thicknesses and specs that are used in the production of, among other items, food containers, ceilings, building and construction materials, heat exchanges, and coatings for an array of household appliances and industrial goods. Located adjacent to Sohar Aluminium’s smelter, the 140,000-tonne capacity rolling mill receives its feedstock requirements in the form of hot metal directly from the smelter.

According to OQ Group, OARC has been facing antidumping (AD) duty proceedings linked to its common alloy aluminium sheet (CAAS) and aluminum foil, in addition to countervailing duty (CVD) on aluminum foil from Oman.

Following a ruling by the US Department of Commerce, published in the Federal Register on April 21, 2022, an antidumping duty cash deposit rate of 5.29% was levied on common alloy aluminium sheet shipped by OARC into the US market.

“That rate remains in place as on December 31, 2023 and will not change until such a time in the future that the Department of Commerce re-determines the Company's AD rate through an administration review,” said OQ in its 2023 Financial Results.

In addition, following a similar antidumping order on aluminum foil, published in the Federal Register on November 12, 2022, OARC was penalized with an antidumping duty cash deposit rate of 3.89%.

More recently, on November 20, 2023, US aluminum foil producers whose complaints led to the antidumping action against OARC, initiated a request for an administrative review of the antidumping order on aluminum foil from Oman.

“As on December 31, 2023, it is unknown if the US producers will maintain or withdraw their request for administrative review of OARC. If they maintain it, DOC will proceed with an administrative review of OARC, and will determine a new AD rate,” OQ stated.

As for the proceedings related to CVD (countervailing duty) on aluminum foil, the order imposing a CVD duty cash deposit rate of 1.93% was subject to an administrative review. This review was initiated by the Department of Commerce on December 29, 2023, marking the start of what is typically a 12 - 18-month long process.

“In this case, the review will establish a duty assessment rate on imports of aluminum foil made during calendar year 2022. As previously noted, such duties are the responsibility of the US importer. OARC is presently engaged in that review, is responding to requests for information from the US Department of Commerce and is vigorously defending the case. A final determination in the review is not anticipated until June 2025,” OQ added in conclusion.

Significantly, the US represents an important market for aluminium foil from Oman. Other target markets include the Middle East, Asia, Europe, Australia, and North and South America.