New Zealand's aluminium extrusion industry is calling for urgent government action as it faces growing pressure from low-priced imports. The Aluminium Extruders Association of NZ (ALENZ) says a rise in imported aluminium extrusions, particularly from China, is affecting local manufacturers, with some products entering the market at prices below the cost of the raw aluminium billet used by domestic producers.
ALENZ applied for a safeguard investigation into aluminium extrusion imports, and Commerce and Consumer Affairs Minister Cameron Brewer initiated the investigation on May 27. The Ministry of Business, Innovation and Employment (MBIE) is required to report to the minister by late September under the statutory 85-working-day timeframe set out in the Trade (Safeguard Measures) Act.
The case is a safeguard investigation rather than a formal dumping case. This means ALENZ does not need to prove that imported goods are being sold below cost overseas. Instead, it must show that a surge in imports is causing serious injury to New Zealand's domestic aluminium extrusion industry.
According to ALENZ chief executive Nick Collins, speed was the main reason the industry chose the safeguard route. However, he said a report by late September may still take too long and that the industry has been seeking a provisional duty to slow imports while the investigation continues.
Local manufacturers say they can compete on quality, service and delivery speed, but not against imported aluminium extrusions priced below the cost of the metal itself. ALENZ estimates that billions of dollars in economic activity and thousands of jobs could be affected if the pressure on the domestic industry continues.
Import pressure grows as domestic output falls
ALENZ's analysis of Stats NZ trade data showed that imports comparable to products manufactured in New Zealand accounted for around 20-23 per cent of the domestic market each year between 2022 and 2025. During the first seven months of 2026, that increased to just over 25 per cent, reaching almost 35 per cent in July alone.
Monthly figures have fluctuated sharply, with the share higher in January before falling to around 14 per cent in March. However, the overall trend during 2026 has been upward. Collins said the July increase could reflect importers bringing in more material before any possible duties are imposed following the launch of the investigation.
Meanwhile, domestic aluminium extrusion production has declined from a peak of 39,500 tonnes in 2022 to 28,400 tonnes in 2025, a fall of around 28 per cent.
The increase in imports has been particularly sharp for hollow aluminium extrusions, which are widely used in windows, doors and construction framing. Imports in this category rose 109 per cent during the first seven months of 2026 compared with the same period last year, while imports from China increased 143 per cent. Imports under a separate category covering other extrusion profiles increased by 13 per cent.
Pricing pressure adds to concerns
Pricing is another major concern for the industry. The average landed value of hollow extrusion imports fell from NZD 10,000 (USD 5920) per tonne to NZD 7,780 (USD 4600) per tonne during the first seven months of 2026. Collins said this decline was difficult to reconcile with the cost of aluminium billet and premiums, which peaked at around NZD 6,810 (USD 4,030) per tonne in April and May.
Industry evidence submitted to MBIE showed imported hollow extrusions arriving in New Zealand at around USD 4,000 per tonne, while local manufacturers reported paying more than this amount for the raw aluminium billet needed to make the products.
Aluminium billet typically accounts for around two-thirds of the costs of a well-run extrusion operation. Its price includes the globally traded aluminium ingot price, billet and alloy premiums, and regional costs such as freight and port charges. The billet must then be extruded, with the process potentially resulting in up to 15 per cent of the metal becoming scrap, before labour, energy, die costs, consumables and other overheads are added.
Safeguard investigation becomes key
New Zealand currently has no tariff, safeguard measure, anti-dumping duty or carbon border measure covering imported aluminium extrusions. ALENZ says this leaves the domestic industry exposed while other markets have introduced restrictions. The United States has imposed a 50 per cent tariff, the European Union's safeguard protection has risen from 25 per cent to 50 per cent, and Australia has anti-dumping and countervailing duties covering Chinese aluminium.
ALENZ estimates that the country's aluminium extrusion industry supports more than 5,000 jobs and generates around NZD 6.3 billion (USD 3.7 billion) in economic activity. The association argues that restrictions in larger markets could result in more aluminium extrusion products being redirected towards smaller and more open markets such as New Zealand.
However, the industry's position is disputed by some importers and overseas producers, who argue that ALENZ's own data shows import volumes fell during the period covered by its original application. The question of whether the increase in imports is causing serious injury to domestic manufacturers will form a key part of MBIE's investigation.
For ALENZ, the safeguard route remains important because it can move faster than a conventional anti-dumping case. Collins said an anti-dumping investigation could take at least 270 days and involve costs that smaller manufacturers may struggle to sustain.
MBIE is expected to report to the minister by late September. For New Zealand's aluminium extrusion industry, the outcome will determine whether safeguard measures are introduced to address the pressure from rising imports.
Note: This article is published in accordance with an article exchange agreement between Mysteel and AL Circle.
