Industrial leaders want global aluminium overcapacity forumStaff Writer | June 5, 2018
The national aluminium associations' leaders from Canada, the United States, Europe and Japan held an exceptional meeting of the aluminium industry from the G7 member countries on June 3rd and 4th in Montreal, and called for a Global Multilateral and Governmental Forum on Aluminium Overcapacity.
Industry In Québec, the aluminium industry generates nearly 30 000 jobs
Global demand for aluminium is growing and will require market-based growth in primary smelter production, recycling and semi-fabricated aluminium products.
Subsidized overcapacity and other market-distorting behaviour, though, is undermining the sustainable growth of the global aluminium industry for both primary and downstream aluminium producers.
To initiate such process, the attendees of the Montreal Aluminium Summit defined a Roadmap to a sustainable global aluminium market that will be shared with the G7, and ultimately the G20 countries.
The Roadmap identifies China as a dominant player in aluminium production.
As China grows its overwhelming share of the market by adding new capacity upstream and downstream, enabled by state subsidies, discriminatory duties on raw metal and support programmes of all forms, it progressively undermines existing privately-owned competition, while inhibiting market-driven expansion outside the country.
To ensure a sustainable solution to the issues around market fundamentals, it is vital that the chosen pathway be inclusive of the whole value chain.
Criteria have been identified for any solution to be sustainable over the long term.
It must be market driven, multilateral, based on multistakeholder engagement, be transparent and reliable, be comprehensive, enable monitoring and be accountable.
The clear solution emerging from the Summit is a Global Multilateral and Governmental Forum on Aluminium Overcapacity based on a robust international monitoring system.
The national aluminium associations' leaders therefore urge the G7 leaders to formally request the G20 to create this Forum and immediately establish an international monitoring system.
The Aluminium Association of Canada, The Aluminum Association, European Aluminium and the Japan Aluminium Association stand ready to support G7, G20, the OECD and other international institutions with knowledge, data and commitment to permanently resolve the global aluminium overcapacity.
In 2017, Québec aluminum exports stood at $8 billion. Exports to the United States alone totalled nearly $7 billion.
In Québec, the aluminium industry generates nearly 30 000 jobs, nearly 7 000 of them in the primary industry.
On May 31, 2018, the U.S. government levied a 10% tariff on aluminum and a 25% tariff on steel exported to the United States by Canada, Mexico and the European Union. ■