Global Steel Trade Associations Call For Boosted Efforts to Address Rising Steel Crisis

SEATTLE (Scrap Monster): The confederation of steel industry associations across the Americas, Europe, Asia and Africa have urged governments of various countries to boost their efforts in the Global Forum on Steel Excess Capacity (GFSEC), in order to more effectively address the growing steel crisis situation.

The steel trade associations expressed serious concerns about the recent increase in steel overcapacity, especially at a time when steel demand has hit the bottom due to Covid-19 pandemic-related crisis. This is contrary to the trend that persisted for the past three years, when overcapacity had witnessed gradual decline.

The uneven recovery in steel production across the world poses risks of destabilization of international steel markets, the associations noted.

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The governments should develop stronger disciplines on industrial subsidies and other support measures that contribute to excess capacity. It also called for upholding effective trade remedies in order to ensure a level-playing field. It highlighted the need for increased transparency in works, through development of open communication and information to the public.

Also, the governments of the region should communicate to G-20 leaders on the need for additional efforts required to curb overcapacity woes. The non-participating governments should resume active participation in the efforts undertaken by the GFSEC.