In a new report on the world’s excess steelmaking capacity, the OECD said that nominal capacity stood at 2.23 billion metric tons at the end of 2018. While that represents a decline of about 0.3% over 2017 and follows an ongoing deceleration in capacity growth, capacity growth could speed back up.

According to the OECD, 87.8 million tons of new capacity is being built now and there are plans for an additional 22.4 million metric tons’ worth.

“Should these projects be realized, global steelmaking capacity could increase by approximately 4% to 5% between 2019 and 2021 in the absence of closures. In the context of global excess capacity, it will be important for policymakers to continue closely monitoring investments and closures that take place in the steel industry,” the OECD said. 

The biggest jump in capacity could occur in Asia, where 53.4 million metric tons of gross capacity additions currently underway and 10 million metric tons in the planning stages, the OECD said.

“Several capacity investments are also taking place in the Middle East region, where investment projects amounting to 25.1 million metric tons of capacity are currently underway, and due for completion in the next three years,” the OECD said.