ALUMINIUM producer and exporter Hulamin has angered downstream importers of the metal by lodging an application with the International Trade Administration Commission of SA (Itac) for a 10% duty on semifabricated, rolled products, ostensibly to increase competition in the sector.

Importers who are members of the Aluminium Federation SA (Afsa) said the application would have the opposite effect, and that they had not been made aware of the application by SA’s only producer of rolled aluminium products until three days before representations on the matter close tomorrow .

Hulamin is one of Afsa’s biggest contributing members and in the past 10 years has undergone major expansion in its rolled products division. The product is used widely in SA’s building, packaging and automotive industries, among others.

Volker Schutte, MD of rolled aluminium importer Metal and Tool Trade, which is a member of Afsa, said yesterday that Hulamin exports about 75% of its rolled products , at prices much lower than those paid by its local customers. Mr Schutte said it appeared Hulamin had applied for the duty to be imposed "extremely quietly … leaving me with the impression that (it) was trying to ‘slip in’ such (an) increase unnoticed, at least till everything has been decided by the authorities".

The application was published in the Government Gazette on February 18 this year .

"They want to shut out competition, which only comes through imports," he said.

"I think most (Afsa) members were not aware and not informed (of the application), and therefore had no opportunity to lodge their objections to Itac on time," Mr Schutte said.

He said Hulamin’s own figures showed that there had been no significant increase in the imports of rolled aluminium product in the p ast five years, which averaged about 13000 tons a year.

Hulamin CEO Richard Jacob said yesterday that the application process was managed by Itac.

"We followed Itac protocol to the letter," he said.

"I am not sure where Afsa fits into it, but I understand that they hosted a meeting (yesterday ) with all objecting parties. SA is the only country with a domestic aluminium rolled-products industry that has no duty protection.

"Import duties are in place … in the US, the European Union, India, China and Brazil up to levels of 16%. In India, duty protection of 35% is in place against Chinese imports, and they have recently been increased in Australia," Mr Jacob said.

"SA has a small domestic aluminium manufacturing economy, threatened by the strong currency, and the possible future termination of rolling slab supply — as has already happened with extrusion billet — is facing increasing, subsidised imports from Asia."

Officials from Itac and the Department of Trade and Industry had not responded to late afternoon requests for information on where responsibility for communicating such decisions lies.

"In this particular issue we have members on both sides — but we have a neutral position on this," Mark Krieg, executive director of Afsa, said yesterday. When asked how many of Afsa’s members had objected to Hulamin’s application, Mr Krieg said none.