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Steel Industry’s Overcapacity Could Trigger Sharp Downturn, Says OECD
09/27/2021 - During its 90th session, the Organisation for Economic Co-operation and Development (OECD)’s Steel Committee warned of potential future downturns if the growth in steel demand slows.
The committee held its most recent meeting on 22–24 September 2021, where it discussed in detail the global steel industry and its future.
Concerning to the committee was the global steel capacity-production gap, which it estimates at 478 million metric tons (based on June 2021 information).
According to a statement by Ulf Zumkley, chairman of the OECD Steel Committee, the committee discussed policy approaches that may help to ensure a “level playing field for a healthy global steel industry” and noted the need to better understand the extent of trade circumvention.
While the market recovers from the impact of the COVID-19 pandemic, the committee noted that many steel producers are still facing “challenging financial conditions.”
Read the full statement here.
