June 1, 2018

Subject: USA imposes 10 percent duty on Canadian Aluminum; Canada retaliates with 10 percent duty on USA aluminum.

I am writing to you at this time to inform you and solicit your help concerning a very important development.  It will affect us all who work, or are associated in any way, with the aluminum industry.  I am not going to go through the details of the imposed duties, nor why they are unfounded; I will leave that to the politicians and media. I am writing to you for your help as I truly believe one united voice can make a difference.

It is not clearly explained in the media that although Canada is a major producer of aluminum it in fact does not produce one single pound of aluminum coil for industries, such as building products. All our aluminum in Canada is shipped south of the border, transformed into aluminum coil and then shipped back to Canada. The US industry buys half of its aluminum from Canada, nearly 4x as much as it buys from its own producers.  The US smelters do not have the capacity to absorb any of this volume.  Tomorrow, American buyers still need the same metal; they will just have to pay more. The increase in metal prices will be passed on to consumers affecting everything from building products, cars to beer cans.

By the American & Canadian governments imposing a 10 percent duty on incoming aluminum, they are hurting all manufacturers in Canada and the United States, the building industry and, in the end, the consumer who will have to pay higher prices.  In addition to this new added cost is the fact that as aluminum continues to rise in price, the threat of substitute products such as PVC, fiber cement or wood taking the place of aluminum becomes a real possibility. In other words, thousands of hardworking Canadian and American jobs are in jeopardy of being lost. As a manufacturer of quality aluminum products for over 44 years, I implore and call on all of you to write your Federal, State or Provincial Member of Government and explain to them that your livelihood could be negatively impacted in the future.

I am not trying to instill a sense of panic, but more so, a sense of urgency. Collectively, we must urge our politicians to take action to resolve these unnecessary, disruptive and potentially devastating results.

Thank you

Lionel Dubrofsky

President

Kaycan Ltd.

 

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