Economy

Steel Groups Call for Action to Cut Global Excess Capacity

Written by Sandy Williams

October 23, 2020

Steel associations from around the globe called on steel-producing economies to intensify their work in the Global Forum on Steel Excess Capacity.

Recent increases in steel overcapacity have reversed a three-year declining trend and are of “tremendous concern” during a pandemic where steel demand is severely depressed. The associations urge participating countries in the Global Forum to renew their commitment and take stronger measures toward transparency and policy to stem the risk of potential destabilization of the international steel markets.

The associations recommend that members of the Forum:

  • Develop stronger disciplines on industrial subsidies and other support measures that contribute to excess capacity and distort markets;
  • Uphold effective trade remedies to ensure a level playing field driven by market forces and fair trade;
  • Deepen the analysis of the drivers of steel capacity expansions to expose subsidized or non-market driven investments;
  • Make a reliable forecast for steel demand in the markets where investments are to be made;
  • Add value to the transparency work by developing open communication and information to the public; and
  • Communicate to G20 Leaders on the need for expanded efforts to address the growing steel excess capacity crisis.

The steel associations also call for non-participating governments (notably China) to become active in the GFSEC’s work.

“Effectively addressing the global steel crisis is in the interest of all economies, steel producers, and steel consumers worldwide, and requires the active engagement of all G20 economies.”

The steel groups include: AISI, EUROFER, CSPA, CANACERO, SMA, Alacero, Brazil Steel Institute, JISF, Russian Steel, Turkish Steel Producers Association, ESTA, AMME, SAISI, KOSA, Ukrmetalurgprom, SINA, CPTI, CFSBI, SEIFSA and Acero Argentino.

Sandy Williams

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