But there’s (finally) some good news — the International Trade Commission is going to investigate.
We’ve written quite a bit about the devastating impact of the steel import crisis (and unfortunately, there was more bad news on Wednesday).
The steel industry, however, isn’t the only sector that’s been hit hard by China’s overcapacity. The aluminum industry also is struggling under the weight of dumped imports. As with steel, China heavily subsidizes its aluminum producers (who also don’t have to follow labor and environmental standards like U.S. companies do).
And since China can’t use all the aluminum it makes, it dumps it into the U.S. market at rock-bottom prices.
Chinese aluminum exports soared to $23.8 billion in 2015 (compared to $6.2 billion in 2005). Prices have fallen 40 percent, according to the Wall Street Journal. Only four aluminum smelters are expected to remain operational in the United States by the end of the year — down from 23 in 2000.
But now the International Trade Commission (ITC) is taking an important first step toward leveling the playing field for American aluminum workers and companies.
On Wednesday, the ITC announced that it officially launched an investigation into the global conditions impacting the U.S. aluminum industry, including trade trends, government policies and capacity increases. It plans to hold a hearing on what it finds by Sept. 29, and will deliver its official report to the House Ways and Means Committee by June 24, 2017.
The announcement comes after United Steelworkers and Century Aluminum Co., lobbied the U.S. government for an investigation into the aluminum industry. The Steelworkers also have asked the government to file a complaint with the World Trade Organization.
Our friends at The Aluminum Association applauded the ITC investigation:
“For U.S. producers, overcapacity, particularly in China, is of paramount concern to the aluminum industry. While the demand for aluminum is growing globally, and is particularly strong in North America, the Aluminum Association is concerned about growing overcapacity in China and questionable trading practices. Aluminum producers in the United States have been hurt by these practices, and have urged the U.S. government to investigate these issues.”
The Alliance for American Manufacturing and The Aluminum Association are both members of the newly formed Manufacturers for Trade Enforcement, a coalition that is opposed to the automatic granting of market economy status for China at the end of 2016.