The group, which wrapped up its biannual meeting last week, issued a cautionary joint statement, noting with concern that a number of planned capacity increases are based on expectations of rising future demand. 

“This creates a significant risk of further exacerbating the excess capacity situation should expected demand not materialize. The (steel committee) underscored that the need to engage with all relevant stakeholders to foster better understanding of these developments and their risks is as paramount as ever,” it said. 

It also called for heightened awareness of cross-border investment activity by state-owned enterprises, saying that “the potential for such investments to be driven by non-market considerations can further aggravate excess capacity globally.”