* Meeting at China Ministry of Commerce on Monday -sources
* Probe follows announcement of new U.S.-Mexico trade deal
* 'High odds' of 30 pct anti-dumping duties -consultancy (Updates throughout)
By Tom Daly
BEIJING, Aug 31 (Reuters) - China's Ministry of Commerce hascalled domestic aluminium foil makers to a meeting in Beijing onMonday to discuss an anti-dumping probe launched by Mexico,three people with direct knowledge of the matter told Reuters onFriday.
Mexico on Aug. 28 said it was starting an investigation intoimports of a type of aluminium foil from China, a day after U.S.President Donald Trump said he had reached a deal with Mexico ona revised North American Free Trade Agreement. The move threatens to jolt China's exports of aluminium,which have been booming in recent months. Mexico "is a bigmarket" for Chinese aluminium foil, one of the sources said,describing the timing of the probe as "very interesting". Beijing is locked in a trade row with the United States,which slapped steep anti-dumping and anti-subsidy duties onChinese aluminium foil earlier this year. In May, Mexican firm Almexa Aluminio filed a complaintalleging aluminium foil of a thickness equal to or less than0.08 millimetres originating in China was damaging the domesticindustry, according to a statement by Mexico's Secretariat ofEconomy.
The product is "used as household foil, flexible packagingfoil, and lithographic foil," among other applications,Texas-based consultancy Harbor Aluminum said in an Aug. 28 note.The period under investigation is the calendar year 2017,although damages will be calculated for a three-year period from2015-17.
"We believe there are high odds for anti-dumping duties ofat least 30 percent as a result of this investigation," giventhe duties imposed by the United States and evidence presentedby the petitioner, Harbor added.
The China Nonferrous Metals Industry Association, whichorganised an unsuccessful joint legal defence against the U.S.duties with a group of foil makers, will also attend the meetingon Monday, one of the people said. The people declined to be identified because they were notauthorised to speak to the media.
China's Ministry of Commerce did not immediately respond toa faxed request for comment. Beijing has previously accused theUnited States of disregarding World Trade Organization ruleswith its duties on Chinese aluminium foil.
The U.S. Aluminum Association welcomed the Mexican probe.
"The North American aluminum market is highly integrated,and it is vital the region work together to combat unfair tradepractices and enforce rules-based trade," association Presidentand Chief Executive Officer Heidi Brock said in a statement onThursday.
(Reporting by Tom DalyEditing by Kenneth Maxwell and Christian Schmollinger)
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.