European Aluminium demands action on subsidized Chinese supply

The Brussels-based European Aluminium said: “The European aluminium industry needs additional instruments to address the harmful effects of Chinese subsidies.” European Aluminium is a trade group consisted of more than 80 producers of the metal.

The organization lauded that it is calling upon the European Commission “to effectively address the distortive effects of foreign subsidies in the EU single market and help create a level playing field for the aluminium industry in Europe.”

European Aluminium stressed a proposed white paper on the topic: “Must be urgently translated into effective measures. The European aluminium industry is buckling under the pressure of subsidized excess capacity from China.”

Gerd Götz, Director General of European Aluminium said: “The EU’s current trade toolbox is far from adequate to defend European industries against the aggressive approach of global powers such as China. The EU needs a more ambitious trade policy to level the global playing field, facilitate supply chain diversification within the EU, and reinforce our defence against unfair trade practices.”

The organization stated that: “The unfairly subsidized Chinese aluminium has led not only to what it calls under-priced Chinese exports, but the metal also has a high carbon footprint, threatening the competitiveness of European producers and Europe’s sustainability ambitions.”

European Aluminium’s members include primary aluminium producers; it also includes makers of extruded, rolled and cast aluminium and other producers of recycled-content aluminium.

The organization as a whole has adopted a “Circular Aluminium Action Plan” designed to allow scrap to make up 50% of Europe’s aluminium feedstock needs by 2030.

Götz states regarding action against emissions-heavy Chinese imports: “The aluminium industry cannot afford to wait much longer.”

He cites an (OECD) report that concluded that “nonmarket forces were responsible for some of the recent increases in aluminium smelting capacity, with detrimental impacts throughout the value chain.”

As per European Aluminium: “The report also indicates that global aluminium companies received up to $70 billion in different forms of support from 2013 to 2017 period, with 85% of the documented subsidies going to just five Chinese firms.”

The organization also adds: “State support has allowed Chinese producers to rapidly increase their production and export subsidized products at dumped prices, leading to global market distortions and depressed global aluminium prices.”

“Today, China produces 57% of the world’s primary aluminium compared to 11% in 2004.”

Götz states: “The Chinese aluminium industry has already built up massive volumes and is capable of entirely replacing the European aluminium industry if the EU does not act assertively.”