According to the report from the Organization for Economic Co-operation and Development (OECD), the non-market factor from government subsidy caused global aluminum capacity oversupply and it became a worry for global aluminum competition, also the government subsidy pulled down the aluminum price.
The report showed that in the past 15 years, the biggest change for global aluminum industry was that China became the largest aluminum production country, which accounted for more than 50% aluminum production in the world. The report also indicated that China and Middle-East countries were the major places that received government subsidy.
Between 2013-2017, the total subsidy from government for the top 17 aluminum manufactures were US$70 billion, especially the top 5 manufactures received 85% for total subsidy and most of them had aluminum smelting capacity.
Government subsidy leads aluminum production oversupply & price falling
10 Jan 2019 15:27 reported by Alex Lo
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