'Dumping' & 'Circumvention' relate to avoidance; avoidance of fees, taxes/duties on product sold at below cost. Chinese SOEs export AL-extrusions into Oz at below cost so that manufactures can use it as an input into their locally made products - downpipes, window sills, backyard orange guns etc.
If an SOE was to t/o CAA it wouldnt make a difference. The SOE would still be Dumping extrusions at below cost into Oz. The other consideration in the equation is that CAA IS an extruder. So it produces extrusions, but also makes end products. Thats why it doesnt want Chinese companies to dump extrusions into this country as CAA competitors instantly gain an import cost advantage.
The whole idea from a Chinese perspective is to take market share despite the losses. Its a squeeze in market share until Oz manf is forced to exit. And then begins the market monopoly where the inevitable price hikes take effect without competition or challenge. Governments are well versed in these sorts of dynamics, which is why other countries impose fines and duties WELL above the OZ standard. Our rates need to come up to the international standard, thus creating a level playing field.
In the past, Phil Jobe has stated many times that he doesnt mind the competition. In fact he wants it. All he is asking for is a level playing field. SOEs are backed by govnts, CAA is a private enterprise listed on the ASX without such backing. It cant afford to sell at below cost as it isnt funded by take-payer dollars.
CAA Price at posting:
15.5¢ Sentiment: Buy Disclosure: Held
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