The Aluminum Association to review United Steelworkers’ petition on primary aluminum

The Aluminum Association looks forward to carefully reviewing the Section 201 petition on primary aluminum filed by the United Steelworkers on 18th April. The Association assured to work with their membership to better understand the impacts of such an action on the entire aluminum value chain. The United Steelworkers files a petition to the association for relief pursuant to section 201 of the Trade Act of 1974.

This is a petition under sections 201-202 of the Trade Act, 1974 and Subpart B of part 206 of the rules of practice and procedure of the United States International Trade Commission. The USW seeks a finding of critical circumstances and a recommendation to the President of provisional relief of an additional duty of 50 percentage points to be applied during the pendency of the remainder of the investigation and Presidential review.

The domestic primary aluminium industry is in a state of acute crisis. Imports have increased by over 19 per cent since 2011 with a speedup In growth in the first two months of 2016, and the global prices of these imports collapsed by nearly 30 per cent over the course of 2015. These dynamics drove prices below operating costs, forcing the domestic industry to permanently shut six out of fourteen plants, idle three more with a fourth scheduled to be idled at the end of June and run below capacity at several remaining facilities. This has eliminated more than 6,500 plus jobs since 2011 through mid-2016. Imports are continuing to increase in 2016 and prices are projected to continue falling. Without immediate relief, the industry is likely to close additional facilities this year. Once a smelter is closed it is a permanent loss. The only way to avoid this outcome is to provide relief that allows the industry to survive in the short term and to compete in a more rational market environment in the years to come. The USW respectfully requests that the commission give this domestic industry and its workers that chance.