Steel Industry Associations Welcome GFSEC Agreement on Overcapacity Reduction

SEATTLE (Scrap Monster): The American Iron and Steel Institute (AISI) along with fifteen other steel industry associations from across the globe welcomed the agreement by majority members of the Global Forum on Steel Excess Capacity (GFSEC) to continue its work on reducing steel excess capacity. The associations also urged dissenting members to rethink on their position at the earliest.

The steel industry groups appreciated the leadership of the Japanese Government during the past year in making significant progress in the Forum. They hoped that recommendations set forth by the Forum are turned into action, especially at a time when global steel overcapacity and market distorting policies pose huge threat to the industry. The groups noted that they are pleased with the commitment shown by a large majority of Forum members to pursue meaningful efforts in addressing global steel overcapacity.

The groups called upon governments of steelmaking economies around the world to redouble their efforts to address the issue, by eliminating the support measures that lead to creation of overcapacity and also by introducing strong rules to curb excess capacity in respective countries.

As per latest OECD estimates, global steel excess capacity stands at nearly 440 million metric tons as of today. It has surged higher by almost 6.5% from the year before.