Aluminum Association CEO Brock Calls on USTR to Address Overcapacity in China
Overproduction of Aluminum in China, Unfair Trade Practices Putting U.S. Facilities Out of Business
ARLINGTON, VA. – Aluminum Association President & CEO Heidi Brock addressed a panel of experts from the U.S. Trade Representative (USTR), the U.S. International Trade Commission (USITC), Department of Commerce (DOC) and other agencies about how the persistent overproduction of aluminum in China is hurting the global market and driving some U.S. aluminum producers to shut down production and lay off workers.
Brock noted that, despite 36 percent topline domestic demand growth over the past 6 years and shipments approaching records last seen in the mid-2000s, the upstream segment of the domestic aluminum industry is severely challenged. Since the beginning of 2015, eight U.S.-based aluminum smelters have curtailed or closed representing more than 60 percent of U.S. primary aluminum capacity and impacting more than 3,000 workers.
“This is a tale of two industries,” said Brock. “Oversupply has depressed global markets to the point of making it impossible for many producers, including here in the United States, to operate and remain profitable.”
To read Brock's full testimony, click here.
Brock called on the U.S. government to:
- Use bilateral negotiations with China later this year to address subsidies and other policies that encourage overproduction and obtain commitments that China will allow antiquated and inefficient aluminum facilities to close;
- Not grant Market Economy Status to China at the end of 2016 as China has requested;
- Hold China to its commitments to reduce carbon emissions. Given its continued reliance on coal-fired power, China’s carbon emissions per ton of aluminum produced far exceed other parts of the world.
Earlier this month, the Aluminum Association released more detailed comments to the USTR in preparation for the hearing which you can view here. Other recent actions on this issue include the initiation of an International Trade Commission investigation into the global competitiveness of the U.S. aluminum industry and the launch of a new coalition – the Manufacturers for Trade Enforcement.
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The Aluminum Association represents U.S. and foreign-based companies and their suppliers throughout the value chain, from primary production to value added products to recycling. The Association is the industry’s leading voice, providing global standards, business intelligence, sustainability research and industry expertise to member companies, policymakers and the general public. The aluminum industry helps manufacturers produce sustainable and innovative products, including more fuel efficient vehicles, recyclable packaging, greener buildings and modern electronics. In the U.S., the aluminum industry creates $152 billion in economic activity. For more information visit www.Aluminum.org, on Twitter @AluminumNews or at Facebook.com/AluminumAssociation.