Brussels — The European Steel Association (Eurofer) has welcomed the Global Forum on Steel Excess Capacity. The Global Forum includes G20 countries and members of the Organisation for Economic Cooperation and Development (OECD). It is to report to G20 ministers on an annual basis within a three-year, renewable mandate.
“The Global Forum will be an opportunity for major steel-producing economies to come together and rationally discuss the policies that create excess steel capacity and the damage it causes”, said Axel Eggert, Director General of Eurofer. “Eurofer and its members, which account for basically all of Europe’s steel production, are happy to be able to contribute to this forum.”
The Global Forum came about as the result of calls at the September 2016 G20 in China. Bringing together over 30 economies – the entire G20 and certain members of the OECD – the forum is the first global platform of its kind expressly created to address steel issues. Axel Eggert commented: “We very much appreciate the support, engagement and perseverance of President Juncker and the European Commission’s trade services in seeking to tackle the issue at a global level.”
China is the main source of steel overcapacity globally, having increased its share of global steel production through state planning from around 15 percent to 50 percent in just 15 years. However, China is not alone: Iran also intends to increase capacity by 40 million tonnes in order target third country markets – even as G20 governments are discussing how to address the existing 700 million tonnes of existing global overcapacity.
“The EU steel industry has worked hard and has reduced its steelmaking capacity by many millions of tonnes in recent years. However, for every tonne the European steel industry has painfully shed, several more tonnes have been created in third countries – without care for the ability of their domestic markets to absorb the steel produced. Dumping in more open markets, such as the EU, is the inevitable consequence”, concluded Axel Eggert.
Source: European Steel Association (Eurofer)