Paris (Reuters) – the global steel industry could face a new round of overcapacity if some countries with overcapacity continue to build new mills, the OECD steel Committee said.
Global steel overcapacity has eased since 2015 as the industry has had to respond aggressively with closures, bankruptcies and job cuts.
The OECD steel committee, which comprises 24 OECD member countries and the European Union, said on Wednesday there had been no significant increase in steel capacity in 2018 after a slight contraction in global steel capacity in 2016 and 2017.
But the committee said the world still had a surplus of 425.5 million tonnes of steel capacity compared with demand amid a gloomy outlook for the global economy and steel market.
The oecd committee has called on countries to quickly remove subsidies and other support measures across the Steel industry as agreed during a meeting of the Global Forum on Steel Overcapacity in China.
The BBS was launched by the group of 20 leading economies in 2016 to tackle overcapacity and state subsidies that have led to overcapacity and trade tensions.
Post time: Mar-29-2019