Global steelmakers urge China to cut capacity

Ten steel industry associations from around the world have called upon China to join the discussion on when industry overcapacity and subsidies after criticism that China – the world’s biggest steel producer and consumer – was not throwing its weight behind the discussions.

Associations representing steelmakers from the United States, Canada, Mexico, Latin America, Brazil, Europe and Turkey have asked China to participate in future talks to address the world’s steel crisis.

“While we were disappointed that the Chinese government was unwilling at this time to join with other governments in a program of actions to address the global steel overcapacity problem, we are encouraged by the support of governments of eight major steelmaking countries and regions to recommend steps to address excess capacity in the steel sector,” the American Iron and Steel Institute and other trade associations said in the statement.

The governments of the United States, Canada, Mexico, the European Union, Japan, Switzerland, Turkey and the Republic of Korea met in Brussels last month under the aegis of the OECD to discuss the estimated 700 million tons of global overcapacity that bedeviled the steel industry.

They concluded that “while the challenges facing the industry arise from many factors, such as structural and cyclical economic developments, government support measures have contributed to significant excess capacity, unfair trade, and distortions in steel trade flows.”

“We did not expect to solve the crisis in one meeting; however, we did hope that the governments of all major steel producing nations would be able to make commitments on a set of principles and agree to work together to help address the crisis,” they said in a statement. “Despite consensus among many countries who participated, China’s lack of support prevented a broad agreement on these commitments.”

 

 

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