Hulamin gets off lightly with new US tariffs

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Hulamin gets off lightly with new US tariffs

Published Date: 2020-10-15 | Source: Stephen Gunnion | Author: Stephen Gunnion

Hulamin gets off lightly with new US tariffs

The aluminium products manufacturer says a number of countries have had higher anti-dumping duties imposed on them.

The US Department of Commerce has imposed duties on aluminium imports from a number of countries following an anti-dumping case brought by the US Aluminium Association. However, Hulamin says it's not worst hit.

In an operational update, the aluminium products manufacturer said its rolling operation was among 38 from 18 countries that were affected. The duties, which become enforceable immediately, range from 0% for Italy to 353% for Germany. The anti-dumping duty to be implemented for common alloy aluminium rolled products from SA is 8.98%. The company said the seven countries with import duties lower than SA represented some 170,000 tons imported by the US last year. Those facing higher anti-dumping duties than Hulamin included 23 rolling mills that exported a combined 392,000 tons into the US. Over the past two years, Hulamin exported between 32,000 and 36,000 tons of affected products to the US.

Meanwhile, sales improved in the third quarter of the year after the ban on alcohol and falling demand for motor vehicles at the height of the lockdown impacted its second-quarter numbers. It said order books in all its operations continued to improve and were approaching normal levels. Confirmed orders for beverage can products, heat-treated plate and extrusions were particularly healthy.

The company's debt to equity ratio reached 27% in June after debt increased by R337 million in the first half of the year. It said the recovery in production and sales activity since then had further increased pressure on working capital.

Hulamin's shares jumped 28% to R1.28 yesterday.





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