Australia is investigating the alleged dumping of aluminum extrusion products by China, the world’s largest producer of aluminum, after an application by domestic producer Capral Ltd.

The application alleges China’s exports of cheaper aluminum products “has caused injury to the Australian industry,” through lost sales, market share, price undercutting and reduced profits, the Australian Customs and Border Protection Service said in a public notice published today in The Australian newspaper.

The global recession is increasing calls by industries worldwide for protection and the EU and the U.S. yesterday lodged a complaint to the World Trade Organization that China unfairly limits exports of raw materials including bauxite, used to make aluminum. China’s Ministry of Commerce today said its exports meet WTO rules and it will contest the complaints.

Aluminum goods exported to Australia between July 1, 2008, and June 30, 2009, will be examined, Australian Customs said. A decision is expected later this year, Sydney-based Capral said today in a statement to the Australian stock exchange.

China, the world’s fastest growing major economy and biggest consumer of metals, this month increased tax rebates on exports of aluminum foil in a wider effort to help companies weather a slump in overseas shipments. China has an unfair advantage over competitors overseas as taxing exports makes raw materials cheaper for domestic producers, the U.S. Trade Representative office said yesterday in its filing to the WTO.