13 A pricetak er industry operating in a truly global mark etplace Europe s metals ecosystem operates in a truly global mark et The nonferrous metals industry is the only basic materials sector that sees consolidated global price setting for most of its products with the L ondon Metal Ex change LME being a crucial pricing instrument These global price setting dynamics mean that EU producers cannot pass on unilateral regional costs such as EU regulatory costs to its customers without losing mark et share Alongside internationally set prices Europe has a signifcant import dependency for all metals ores and concentrates including 100 import reliance for several specialty metals and rare earths 16 Europe also imports far more primary metal than it e xports There is strong evidence for major stateaid interventions and support in metals production outside of the EU in particular in China As an e xample a recent OECD report concluded that 85 of subsidies in the aluminium sector went to 5 Chinese companies Such actions have resulted in e x cess capacities in China for aluminium silicon and several other metals at the same time as European production has stalled e g over 30 of Europe s primary aluminium production capacity has been idled since 2008 China s mark et dominance for nonferrous metals share 2016 Production of NonFerrous Metals EU vs China Millions of tonnes share change 20082016 Source T aube 2017 Source British Geological Survey 16 European Commission Critical R aw Materials factsheet 17 OECD Measuring distortions in international mark ets the aluminium value chain 2019 1990 50 40 30 20 10 2017 China To tal EU To ta l Aluminium 54 44 35 Copper 15 42 L ead 5 30 Nick el 15 46 Zinc 13 48 Cobalt 13 MET ALS IN A CLIMA TE NEUTRAL EUROPE A 2050 BL UEPRINT 13