Mytilineos: The aluminium is being destroyed worldwide by the chinese practices

The aluminium is being destroyed worldwide by the chinese practices, considers the president of the… Group Mytilineos Evangelos Mytilineos.
If the European Commission granted market economy treatment (MET) in China the consequences for the aluminium sector in the EU will be huge, according to representatives of the industry.
Last month the Commission said it would focus on new measures to deal with the chinese dumping and illegal subsidies, but will not decide if the economy of China is designated a market economy.
The status of a market economy is controversial, because, if granted, the trading partners should treat communist China as an equal free market with regard to the resolution of disputes.
Gerd Götz, director general of the European Aluminium association, said recently that the crisis of the steel in the EU has turned the debate to the SEA of China and distract the attention of Brussels from other european industries, such as the aluminium sector, which could have the same luck.
“If the EU grant to the China SEA, will put at risk the jobs of 80,000 workers in europe in the aluminum industry,” he warned, adding that opening the door to China – regardless of the mitigating measures would jeopardise the long-term future of the EU industry”.
China argues that when it joined the World Trade Organisation (WTO) in 2001, the promised regime change until the end of 2016. However, the 28 countries of the European Union oppose the move as they consider that it is exempt Beijing from a long series of disputes as the disputes for the steel and solar panels.
The Commission announced last week (4 August) that it would introduce retroactive anti-dumping duties on imports of steel products from China and Russia.
“In the wake of the global crisis steel, the Commission applies trade defence instruments for the restoration of equal conditions of competition between EU and foreign producers,” said the Commission in a communication.
The case of the aluminium
The european aluminium industry supports that the overcapacity of China in the primary aluminium is five times the size of the total EU production.
China is stepping up the production in the entire value chain, including semi-manufacturing, where exports to the EU increased by 21% in 2015 and by 17% in 2014.
The chinese share of world production of primary aluminium has increased from approximately 10% to over 50% in just a decade.
The chinese government subsidizes systematically strategic sectors such as steel and aluminium, solar panels, and bicycle, added Götz.
“The state supported foundries aluminium allow Chinese producers to sell at artificially low prices, to the detriment of EU companies that compete in a fair manner and follow the rules of the EU. The EU should, therefore, not to proceed with the administration of the SEA up to China to really become a market economy”.
“Out of touch with reality”
Evangelos Mytilineos, chairman and ceo of Mytilineos A. E., agreed with the Götz. The Mytilineos said that as was the case with steel, the aluminum is destroyed at a global level by the chinese practices.
“There is absolutely no doubt that the chinese aluminium market is out of touch with reality […] has nothing to do with the real world, has nothing to do with the actual production cost of the hardware, nothing to do with the sales prices, nothing to do with the markets”, he noted.
The Mytilineos said that aluminum has had consistently high growth rates in the last few years and is expected to remain in high demand for the next ten years.
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