Global Aluminum Associations call for global forum on aluminum overcapacity
Monday, April 16, 2018
The Aluminum Association released a joint letter with the Aluminium Association of Brazil, Aluminium Association of Canada, European Aluminium, Japan Aluminium and Instituto Mexicano del Aluminio, A.C. urging G20 leaders to enact a global forum on aluminum excess capacity.
In the letter, the trade groups reference efforts by the Chinese government to rein in overcapacity but point out that such activities are not nearly enough to end the problem altogether.
The letter reads, in part:
As organizations representing aluminium producers from the entire value chain in their respective regions, we are concerned about the unsustainable and steady increase of overcapacity particularly in China in both primary and semi-fabricated aluminium sectors. This trend is exacerbating the difficulties in creating a global level playing field for aluminium trade.
While efforts to curtail subsidised or illegal production in China are welcomed, recent data shows that such measures are insufficient to tackle the abundant overcapacities and the real increase of production in China amounting to 13,3% compared to 2% in the rest of the world in 2017. While its primary capacity continues to grow, China is also emphasizing its focus on producing downstream aluminium products for the global market.
The groups are calling on G20 leaders to take action during the next Summit in Buenos Airies, Argentina. They believe the G20 can play a role in shaping a level playing field for aluminum and suggest launching a Global Aluminium Forum in order to endorse market economy principles and transparent methods.
Read the full letter here.