industry associations in the Americas, Europe, Africa, and Asia are calling
for the governments of steelmaking economies to step up efforts to
effectively tackle persistent global excess capacity in the steel sector,
including by quickly implementing strong rules and remedies that reduce
excess capacity, its impact, and its causes.
The industry groups
emphasized that governments should use all available mechanisms and
negotiation forums, including the G20 Global Forum on Steel Excess Capacity,
to do the following:
reduction of excess capacity.
market-distorting subsidies and other support measures that contribute to
trade remedies to ensure a level playing-field driven by market forces.
international rules against subsidies and preferences to state-controlled
transparency and cooperation.
--And create robust
mechanisms to facilitate the exit of inefficient firms.
The industry groups
commended the Sept. 30 statement by Ulf Zumkley, chair of the Organization
for Economic Cooperation and Development’s (OECD) Steel Committee, which
expressed grave concerns about the unexpected growth of new steelmaking
facilities in 2019, exacerbating global excess capacity and contributing to
trade tensions. Participants in the OECD Steel Committee reiterated the need
for further capacity reductions in relevant steel-producing economies and
urged members to extend the G20 Global Forum on Steel Excess Capacity past
its current expiration in 2019.
“We are grateful
for the efforts made to date by the G20 and OECD governments to address
excess capacity, and to support a playing field at the G20 Global Forum on
Steel Excess Capacity and OECD Steel Committee,” the industry groups said.
“Unfortunately, effective reductions in capacity and concrete actions to
remove government measures that distort markets, including raw materials
markets, have not been adequate to date. Efforts by governments to eliminate
practices that lead to excess capacity should be redoubled. We are hopeful
that the diligent efforts of Japan, the current G20 Chair, are successful in
extending the G20 Global Forum on Steel Excess Capacity beyond 2019, and we
urge all G20 and OECD steelmaking economies to pursue all vigorous means to
obtain substantive results on the critical problem of steel excess
The steel industry
groups issuing the call for urgent action include representatives of the
Association (SMA), American Iron and Steel Institute (AISI), EUROFER
(European Steel Association), Canadian Steel Producers Association (CSPA),
CANACERO (the Mexican Steel Association), Alacero (the Latin American Steel
Association), Brazil Steel Institute, Turkish Steel Producers Association,
Republican Association of Mining and Metallurgical Enterprises (AMME), The
Japan Iron and Steel Federation (JISF), European Steel Tube Association (ESTA),
Korea Iron and Steel Association (KOSA), Specialty Steel Industry of North
America (SSINA), South African Iron and Steel Institute (SAISI), The Cold
Formed Steel Bar Institute (CFSBI), Association of Enterprises
UKRMETALURGPROM (Ukraine), Russian Steel Association, Indian Steel
Association, and The Committee on Pipe and Tube Imports (CPTI).