State control said distorting aluminum market

Mar 19, 2014 | 07:15 PM | Michael Cowden

Tags  Aluminum Extruders Council, AEC, Wiley Rein, Robert E. DeFrancesco III, trade petition, duties, state-owned enterprises, China primary aluminum

CORAL GABLES, Fla. — State-owned entities account for a significant amount of global primary aluminum production, leading to market distortions downstream, according to a trade attorney.

State-owned companies don’t make decisions based on market forces but instead—particularly in China—prioritize goals such as employment, Robert E. DeFrancesco III, partner at Washington-based law firm Wiley Rein LLP, said March 19 at the Aluminum Extruders Council’s annual meeting in Coral Gables.

“We see factors at play in their decisions as to investments and expansions in capacity that do not relate in any way to demand forces,” he said. “This obviously has a distortive effect on trade flows both at the level of production where they are and downstream products.”....





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