Heidi Brock, President & CEO, the Aluminum Association addresses overcapacity issue during Aluminum Week 2016

On October 26, 2016, during the opening session of Aluminum Week 2016, organised by China Nonferrous Metals Industry Association, at Nanning City, Guangxi, China, Heidi Brock, President & CEO of the Aluminum Association made an address as the representative of the U.S. aluminium producers.

She started her address referring to the significance of a globally integrated aluminium industry and the quick expansion of aluminium industry around the world along with the growing demand. She called for better co-operation among global aluminium producers to benefit from this record growth in aluminium.

For that purpose, she said, aluminium producers around the world must have a few key common goals:

    Agree to play by the same set of rules on global trade;
    Encourage negotiations between our respective governments to address shared challenges;
    Increase  transparency in the marketplace including shared language and definitions;
    Commit to the highest environmental standards including enforceable CO2 emissions targets.

She said that forums like CNIA’s annual Aluminum Week offer opportunities to start meaningful dialogue for increased cooperation and understanding between respective industries. She reiterates that making the right decisions today would benefit not only U.S. producers but producers around the world including China.

She also reiterated her concerns about the global aluminum overcapacity impacting the market. She drew attention to how smelters were closing in the U.S. U.S. primary aluminum production is at its lowest level since the 1950s cutting employment by more than half. 

Chinese production has continued to grow and now accounts for well over half the world’s output. She drew attention to government subsidies in China which affecting the global free trade concept.

She urged the overcapacity issue to be jointly addressed by the U.S. and Chinese, and other governments. She also expressed her concern that thought the U.S. downstream segment continues to perform well these issues might easily weaken the downstream industry tomorrow.

She appreciated the CNIA for sending a delegation to Washington, D.C. at the end of last month to testify before our International Trade Commission. Industry representatives from around the world including Canada, the European Union and Russia all attended the hearing which proves that overcapacity is a matter of global concern.

She called for keeping aluminium on the agenda of bilateral trade negotiations between the two countries and urged the CNIA and all of you here to join us in supporting this ongoing bilateral dialogue.

She also applauded the recent news out of the China State Council banning new capacity for any industries facing serious oversupply – including aluminium.

She suggested convening a joint committee, with the participation of the respective governments, to discuss our common definitions for describing the critical area of production and capacity.  Definitional data and tracking methods must also be consistent in the area of CO2 emissions which brings me to my third and final point.  

She urged the forum to collectively commit to the following principles:

1.  Global Dialogue. 

2.  Improved Understanding 

3.  Production Excellence

For the U.S. industry, and for many aluminium producers around the world, these issues require urgent and immediate attention. She said it’s the right time for China to join the community of global aluminum producers committed to a sustainable future for this industry.

By working together, she said, they can collectively contribute to make the great aluminium industry a sustainable industry.

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