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March 21, 2017
Aluminum manufacturers want global forum to address excess capacity
Three organizations representing aluminum producers along the whole value chain in the United States, Europe, and Canada, are sounding the alarm on global market imbalances in the aluminum industry, which they say is caused in particular by the enormous excess capacity in China.
According to the U.S. Aluminum Association, the Aluminium Association of Canada and European Aluminium, this situation not only significantly distorts international trade flows affecting all countries but also undermines global stability.
The three associations released a joint letter at the recent G-20 summit calling for the creation of a Global Forum to address global aluminum overcapacity.
China's state-sponsored support is contributing to an unsustainable structural overcapacity that will impact growth and contribute to heightened instability until it is addressed.
The aluminum producers mention that last year's G-20 resulted in the creation of a Global Forum on steel excess capacity in order to increase information sharing and cooperation.
The say now is the time to recognize the excess capacity which negatively impacts the competitiveness of the global aluminum industry and they urge G-20 leaders to provide a collective response to the aluminum sector by creating a Global Forum on aluminum excess capacity.
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