Century Aluminum commends USTR’s request for WTO consultation with China on illegal aluminium subsidies

<p>Century Aluminum Company&rsquo;s President and Chief Executive Officer Michael A. Bless today commended the U.S. Trade Representative&rsquo;s (USTR) announcement that the United States has requested World Trade Organization (WTO) consultations with China regarding the Chinese government&rsquo;s illegal subsidization of its aluminum industry.</p> <p><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/century.JPG" alt="News" width="517" height="226" /><br />For years, the Chinese government has used its state-directed financial system and other channels to expand and maintain millions of tons of uneconomic and unnecessary primary aluminum smelting capacity.&nbsp; The resulting excess capacity has caused a persistent global glut of metal that has made it impossible for market-oriented producers in the United States and elsewhere to sell profitably.&nbsp; Smelters in the United States have been forced to shut down as a result, with thousands of workers losing their jobs as China continues to pump state support into an already bloated industry.<br /><br />{googleAdsense}<br /><br />&ldquo;USTR&rsquo;s decision to challenge these unreasonable, illegal, and harmful subsidies is an important step towards a long-term solution, and we are thankful for the Administration&rsquo;s efforts on behalf of our industry,&rdquo; Bless said.&nbsp; &ldquo;But it is only a first step.&nbsp; Our industry is in crisis because China refuses to play by the rules.&nbsp; We need action now to ensure the survival of what remains of the U.S. aluminum industry.&rdquo;<br /><br />&ldquo;Century believes strongly in the industry&rsquo;s efforts to defend itself from unfair trade,&rdquo; Bless said, &ldquo;and we will continue to help lead those efforts until the market is restored to balance.&nbsp; We look forward to working with the incoming Administration in furtherance of that goal.&rdquo;<br /><br />Aluminum is a key input in a variety of advanced, downstream applications, from lightweight vehicles to aerospace technology.&nbsp; There were 18 smelters in the United States in 2001, when China joined the WTO.&nbsp; Today, there are only five, following a series of closures under the pressure of depressed global prices.&nbsp; Over the same period, China has gone from a minor player in the global industry to producing more than 50% of total global supply, even though China&rsquo;s industry consists largely of high-cost smelters that are at the top end of the global cost curve.</p>