Eurometaux Introducing the Non-Ferrous Metals Industry. Guy Thiran, Director General, Eurometaux

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1 Eurometaux Introducing the Non-Ferrous Metals Industry Guy Thiran, Director General, Eurometaux 8 th November 2018

2 Today, we will go through the following Who we are: Key facts on the nonferrous metals industry Why we matter: Our role in a sustainable society Our key messages Pg.2

3 1. Who we are

4 Europe s non-ferrous metals industry United 900+ facilities 500,000 direct jobs 120 bn annual turnover 1/5 global production Number of facilities per country

5 Our membership 20 Companies 11 National Associations 6 EU Commodity Associations 9 Associate Members Pg.5

6 EU non-ferrous metals exports to China In 2017, the EU exported to China Aluminium: 305 Kt Copper: Kt Nickel: 37 Kt Lead: 11Kt Zinc: 152 Kt Pg.6

7 Chinese non-ferrous metals exports to EU In 2017, China exported to the EU Aluminium: 781 Kt Copper: 84 Kt Nickel: 9 Kt Lead: 2 Kt Zinc: 11 Kt Pg.7

8 In thousand tonnes Chinese metals production has increased significantly in the last decade vs EU Non-ferrous metals refined production % since Consistent levels EU China World Bureau of Metals Statistics Pg.8

9 Increased Chinese production for all metals = overcapacities in several sectors: 50% share of global production 45% share of global production 80% share of global production 50% share of global production +40% in 10 years +10% in 10 years +5% in 10 years +15% in 10 years 77% utilisation rate 60% utilisation rate 50% utilisation rate 64% utilisation rate Will other sectors follow? 35% share of global production +15% in 10 years 30% share of 80% share of global production global production +15% in 10 years +10% in 10 years Pg.9 Source: Analysis of market distortions in the Chinese non-ferrous metals industry Think!Desk Research & Consulting (2017)

10 EU-China Aluminium trade flows ( , tonnes) Large increase in China exports to EU % since % since EU exports to China EU imports from China Source: Eurostat, Chapter 76 Pg.10

11 EU-China Copper trade flows ( , tonnes) EU exports to China EU imports from China Source: Eurostat, Chapter 74 Pg.11

12 300, EU-China Zinc trade flows ( , tonnes) 250, , , , , EU exports to China EU imports from China Source: Eurostat, Chapter 79 Pg.12

13 EU-China Lead trade flows ( , tonnes) EU exports to China EU imports from China Source: Eurostat, Chapter 78 Pg.13

14 40, EU-China Nickel trade flows ( , tonnes) 35, , , , , , , EU exports to China EU imports from China Source: Eurostat, Chapter 75 Pg.14

15 2. Our role in a Sustainable Society

16 Towards a green (sustainable) economy ETS Competitiveness Innovation Resource efficiency Product policies and methodologies Circular Economy Free European Product Policy has the objective of ensuring that consumer and fair goods/products produced, GPP Metals imported in the or EU used in Europe have an acceptable trade Sustainability Footprint Sustainable (carbon intensity, Economy resource intensity, toxicity, water intensity, Ecodesign cost and benefits balance, ) through their entire life cycle Investment Non-toxic environment Low Carbon Economy Chemicals management Product Environmental Footprint EU today the world tomorrow? Pg.16

17 How will the EU Society look like tomorrow? EU policy is designing a European society that will be: - Decarbonised - Circular - Non Toxic EU has become the regulatory model of the world Today Europe, tomorrow the Rest of the World HOW TO MAKE EU METALS INDUSTRY VALUE CHAIN WIN? Pg.17

18 Metals with Ambition: A horizontal initiative to answer 2050 questions A united metals industry A common low-carbon narrative A showcase for industry activity Pg.18

19 The metals industry Why should you care? Metals are a key enabler of the low-carbon transition According to the World Bank, tomorrow s lowcarbon technologies will be MORE metals intensive - demand rises sharply in a 2 C scenario +300% 2050 metals demand increase +200% 2050 metals demand increase +1000% 2050 metals demand increase Pg.19

20 Example Metals as the key enablers for Europe s low-carbon transport Example: Clean mobility is driven by metals & alloys Signalling cables (charging) Electric Vehicle Battery Lightweighting + Pg.20

21 European metals industry: efficiency leaders 53% 48% 60% 35% Reduction in CO2 emissions or energy intensity since 1990 Crucially, we re now reaching scientific limits of what s possible Pg.21

22 Metals recycling = Big sustainability opportunity Base metals Technology metals >95% buildings >60% packaging >90% automotive <35% E-waste recycled properly in Europe (2015) For every 1 tonne of e-waste Europe recycles, 2 tonnes are a lost opportunity Pg.22

23 Our Sustainability: wider than climate change & circular economy Low CO2 footprint Circular Economy Responsible sourcing Safe use of chemicals Emissions to air and water Pg.23

24 3. Our key messages

25 Non-ferrous metals are commodities operating in a global market + Metals are priced globally by London Metals Exchange (or other mechanisms) European Producers cannot pass on extra regulatory costs Importance of FREE and FAIR Trade internationally Level Playing Fields to avoid unfair competition! Pg.25

26 Conclusion Big challenges but also big opportunities! The Low-carbon transition is a major opportunity for the non-ferrous metals industry and we are ready to contribute Recycling is in the DNA of the NFM industry - Good performance but big improvements possible WTO free and fair Trade rules must be respected Eurometaux leads the joint efforts to demonstrate that the metals industry in Europe is a part of the SOLUTION Pg.26

27 THANK YOU Avenue de Broqueville 12 B-1150 Brussels Tel: +32 (2)