Oversupply of global steel products and the growth of world trade protectionism have put considerable pressure on Korean steel enterprises, who are still looking for new ways of economic growth.
At a regular meeting in Paris last week, the OECD Steel Commission said that global steel production capacity was about 2.23 billion tons last year, down 0.3% from the previous year.
Although the global steel production capacity has not changed much year on year in terms of figures, it still has a huge surplus of 576 million tons compared with actual demand, which is 19 times the total steel exports of all Korean steel enterprises. Last year, the total export volume of Korean steel enterprises was 30.4 million tons.
The Commission said that despite oversupply, many new investments are still being made globally, and global steel production is expected to grow by 52 million tons in 2018-2020.
Continued oversupply has sent a negative signal to South Korea, the world's fifth largest steel producer. Last year, Korea produced 72 million tons of steel, second only to China, India, Japan and the United States.
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