Lara Pedrini, CAMS’ Post

🚨 This week the US banned imports from more PRC critical mineral companies over alleged human rights abuses involving the Uyghurs. China accounts for over 85% of global magnesium production and it is critical for industry to proactively identify and mitigate these supply chain risks. PRC Companies added to UFLPA Entity list: Xinjiang Tengxiang Magnesium Products Co., Ltd. Rare Earth Magnesium Technology Group Holdings, Ltd. Century Sunshine Group Holdings, Ltd. Xinjiang Habahe Ashele Copper Co., Ltd. (also known as Ashele Copper) Kashgar Construction Engineering (Group) Co., Ltd. As a reminder, the UFLPA Entity List now includes over 70 entities tied to products including cotton apparel, automotive parts, vinyl flooring and photovoltaics to include solar panels. Exiger will help DOD stakeholders ensure regulatory compliance and adherence to DOD Supplier Risk Management Framework with Full visibility into your supply chain (including into subtier suppliers and raw materials/inputs) and screening discovered subtier suppliers for risk (including against local/Chinese-language media publications, blogs, NGO reports, etc.). Exiger’s single-click supply chain risk detection SaaS platform enables you to batch upload your list of suppliers and quickly identify hidden risk within your Supply Chain. https://lnkd.in/eANFEXsz

The U.S. just banned imports from five more Chinese companies linked to human rights abuses against Uyghurs, intensifying efforts to clean up supply chains. 🛑 https://lnkd.in/ghzQfs8q The latest additions to the UFLPA Entity List include Rare Earth Magnesium Technology Group and Zijin Mining Group’s subsidiary, Xinjiang Habahe Ashele Copper Co. These companies are tied to forced labor practices, and the list now has over 70 entities connected to products like cotton apparel, automotive parts, vinyl flooring, and solar panels. While Chinese authorities deny the accusations, the U.S. is doubling down on its commitment to end forced labor. For businesses, this means staying vigilant and ensuring your supply chain is ethical and compliant is more important than ever. Let’s team up to overcome these challenges and keep your business on the right side of compliance. 🌍🤝 https://lnkd.in/gvwJJYU5 https://lnkd.in/gY8JTTzh #UFLPA #ForcedLabor #SupplyChainEthics #HumanRights #Compliance #GlobalTrade

The US expands efforts to combat forced labor in supply chains. In an important move to uphold human rights, the U.S. government has extended its ban on imports to include five more Chinese companies linked to alleged forced labor practices involving the Uyghur minority. Among the companies affected are Hong Kong-based Rare Earth Magnesium Technology Group Holdings and Zijin Mining Group's subsidiary, Xinjiang Habahe Ashele Copper Co. The additions to the Uyghur Forced Labor Prevention Act Entity List underscore the U.S.'s ongoing commitment to eliminating goods made with forced labor from entering the supply chain. The list now comprises over 70 entities associated with various products, including cotton apparel, automotive parts, and solar panels. U.S. officials say Chinese authorities have established labor camps for Uyghurs and other minority groups in Xinjiang. Beijing denies any abuses. This ban highlights the importance of real-time ESG monitoring. At YUKKA Lab, we use AI-driven news analytics to provide timely insights on such developments, helping businesses stay ahead of ESG risks and ensuring compliance with global standards. Stay informed, and act decisively. #HumanRights #SupplyChain #ForcedLabor #Uyghurs #GlobalTrade

Reuters [excerpt]: The #UnitedStates on Thursday banned imports from five more Chinese companies over alleged #humanrights abuses involving the #Uyghurs, according to a government posting, as part of its effort to eliminate goods made with #forcedlabor from the U.S. #supplychain. The companies include #HongKong-based Rare Earth Magnesium Technology Group Holdings and its parent, Century Sunshine Group Holdings which manufacture magnesium fertilizer and magnesium alloy products. Also included is Zijin Mining Group Co subsidiary #Xinjiang Habahe Ashele Copper Co, which mines nonferrous metals. The targeted companies did not immediately respond to requests for comment. The companies were added to the Uyghur Forced Labor Prevention Act Entity List, which restricts imports tied to what the U.S. government characterizes as an ongoing #genocide of #minorities in China's western Xinjiang region. The list now includes over 70 entities tied to products including #cotton #apparel, #automotive parts, #vinyl #flooring and #solarpanels. The list identifies those who work with the government of the Xinjiang Uyghur Autonomous Region to recruit and transport Uyghurs, Kazakhs, Kyrgyz or members of other persecuted groups out of the region, and those who source material from the region or from people who work with the government of Xinjiang. U.S. officials say Chinese authorities have established labor camps for Uyghurs and other #Muslim #minority groups in Xinjiang. Beijing denies any abuses. "The so-called 'forced labor in Xinjiang is nothing but an egregious lie propagated by anti-China forces and a tool for US politicians to destabilize Xinjiang and contain China’s development," a spokesperson for the Chinese embassy in Washington said on Thursday in a statement. "China will continue to firmly safeguard the legitimate and lawful rights and interests of Chinese companies." #news #business

Vietnam investigates anti-dumping of galvanized steel imported from China, South Korea (case no. AD19) The Ministry of Industry and Trade (MoIT) has issued Decision No. 1535/QD-BCT dated June 14, 2024 on the investigation and application of anti-dumping measures for galvanized steel products imported from China and South Korea. The decision to conduct an investigation is issued based on the results of the appraisal in accordance with the law on trade remedies for the dossier of request for investigation of the application of anti-dumping measures submitted in full and valid on May 3, 2024 by enterprises representing the domestic manufacturing industry including 5 companies: Hoa Sen Group Joint Stock Company; Nam Kim Steel Joint Stock Company; Phuong Nam Steel Company; Ton Dong A Joint Stock Company and China Steel & Nippon Steel Vietnam Joint Stock Company.. The investigation period to determine the dumping act is from April 1, 2023 to March 31, 2024. The time to investigate and determine the damage is from April 1, 2018 to March 31, 2024. According to the process, procedures, the parties involved are foreign enterprises and organizations have the right to express their views, provide information on the case (answer the questionnaire) as well as request for consultation with the investigating authority on/before September 8, 2024. HS 7210.41.11, 7210.41.12, 7210.41.19, 7210.49.11,7210.49.14, 7210.49.15, 7210.49.16, 7210.49.17, 7210.49.18, 7210.49.19,7210.50.00, 7210.61.11, 7210.61.12, 7210.61.19, 7210.69.11, 7210.69.12, 7210.69.19, 7210.90.10, 7210.90.90, 7212.30.11, 7212.30.12, 7212.30.13, 7212.30.14, 7212.30.19, 7212.30.90, 7212.50.13, 7212.50.14, 7212.50.19, 7212.50.23, 7212.50.24, 7212.50.29, 7212.50.93, 7212.50.94, 7212.50.99, 7212.60.11, 7212.60.12, 7212.60.19, 7212.60.91, 7212.60.99, 7225.92.90, 7226.99.11, 7226.99.91.

Interesting bits about today’s additions to the #UFLPA Entity List: - Changhong Meiling is one of China’s largest manufacturers and distributors of home refrigerators and freezers. They are based in Heifei (not Xinjiang). The company was formerly known as Hefei Meiling. After being listed in 2022, the company changed its name. So, in a first move of its kind, DHS is listing the re-named company. - Baowu Group Xinjiang Bayi Iron and Steel Co., Ltd (“Xinjiang Bayi”) engages in iron ore mining and steel manufacturing. Its main products include rebar, hot-rolled coils, and medium and thick steel plates. The entity is owned by the Baowu Group, who is reported to be the world’s largest steelmaker. Importantly, only Xinjiang Bayi is listed, meaning that, at least in theory, sourcing from other Baowu Group entities should be OK. When a listing is meant to cover more than one entity, DHS explicitly references “its subordinate and affiliated entities” or “subsidiaries.” - Changzhou Guanghui Food Ingredients Co., Ltd. produces and sells aspartame, an artificial sweetener and food additive. It is located in Jiangsu (not Xinjiang). DHS stated that is has reasonable cause to believe that the entity sources production inputs from Xinjiang. A good example of why UFLPA diligence does not end with checking whether the entity is located in Xinjiang or on the Entity List.

Follow-Up: Escalating Challenges for the South African Foundry Industry In a continuation of the ongoing challenges highlighted in my previous post, the situation for the South African foundry industry has further deteriorated. Since my last update, the prices of scrap steel have surged significantly, with Local Super Premium increasing by 12%, Local Premium by 18%, and Local 201 Heavy by 12%. This steep rise in prices is primarily attributed to the South African government's failure to protect the domestic steel industry, thereby allowing scrap metal to be exported freely. The government's inability to implement effective measures to safeguard the local steel industry has led to a shortage of scrap metal available for domestic use, driving up costs for foundries that rely on this essential raw material. The export of scrap metal has become a lucrative venture, leaving local foundries to grapple with inflated prices and limited supply. Compounding these challenges is the recent wage agreement signed by the Metal and Engineering Industries Bargaining Council (MEIBC). While the agreement aims to address workers' concerns, it has inadvertently placed additional financial strain on smaller foundries already struggling to cope with rising operational costs. The increase in labour costs, combined with the skyrocketing prices of scrap steel, has further eroded the profitability of these businesses, pushing many to the brink of closure. Smaller foundries, which are crucial to the overall health of the South African manufacturing sector, now face an uncertain future. The cumulative impact of government inaction, escalating raw material costs, and increased labour expenses are creating an untenable situation for these businesses, threatening jobs and economic stability within the industry. It is imperative that the South African government takes immediate and decisive action to address these issues. Implementing protective measures to regulate scrap metal exports, providing financial support to struggling foundries, and fostering a more favourable business environment are essential steps to ensure the survival of the industry. The foundry industry is a vital component of South Africa's manufacturing landscape, and its decline would have far-reaching consequences. It is crucial for all stakeholders to work collaboratively to find sustainable solutions that can stabilize the industry and secure its future. In conclusion, the challenges facing the South African foundry industry have intensified, demanding urgent attention and proactive measures. By addressing the root causes and implementing supportive policies, we can help the industry navigate these turbulent times and emerge stronger and more resilient.

The ongoing strike by US Gulf and East Coast dock workers is anticipated to have significant repercussions on the US polymer trade. Polyethylene (PE) exports are already feeling the impact, and concerns are mounting around polyvinyl chloride (PVC), as all US Gulf PVC exports pass through one of the affected East Coast ports. On the import side, polyethylene terephthalate (PET) resin shipments have already been diverted to the US West Coast in anticipation of the disruption. While the imports of purified terephthalic acid (PTA) are at risk of being affected by the strike. #ICIS #US #trade #imports #exports #supplychain #PE #PVC #PET #PTA #container #surcharge #congestion

EU says plan to ensure critical raw materials supply is not aimed at China! The CRMA sets a range of ambitious targets for the EU’s consumption of “strategic raw materials” by the end of this decade. In particular, no more than 65% of the EU’s annual consumption of any such material should derive from any single non-EU country. According to a study published in April 2023 by EU policy think tank Bruegel, EU imports from China exceeded this threshold for five materials — bismuth, manganese, #magnesium, cobalt, and strontium. The EU also breached the same threshold for imports from two other countries: Turkey for borates and feldspar and the United States for beryllium. https://lnkd.in/etrFzeZT

** PRICING ALERT ** The tariff rate from China to the U.S. on steel and aluminum Scaffold & Shoring products, under Section 301 will be increasing to 25%. This means that you will see an increase in pricing (keep reading). ** THE GOOD NEWS: ** Unlike most manufacturers, AAIT / Technocraft Scaffold does not manufacture or import from China! What's better than SAVING MONEY, WITHOUT SACRIFICING QUALITY??? (Answer: NOTHING!) Read for yourself: https://lnkd.in/g2C4bPw5