Paris, March 27 (Reuters) - The OECD Steel Committee said that if some countries with excess capacity continue to build new steel mills, the global steel industry may face a new round of excess capacity.
Due to overcapacity, the steel industry has to take radical measures such as shutdown, bankruptcy and layoffs. Since 2015, the global steel overcapacity has eased.
The OECD Steel Commission, composed of 24 OECD member countries and the European Union, said on Wednesday that global steel production has not increased significantly in 2018 since it contracted slightly in 2016 and 2017.
However, the Commission said that global steel production capacity remained 425.5 million tons surplus to demand in the face of a gloomy global economy and a sluggish steel market outlook.
The OECD Committee calls on countries to quickly eliminate subsidies and other support measures for the steel industry, as agreed at the Global Forum on Steel Overcapacity.
The forum was launched by the Group of 20 (G20) in 2016 to address overcapacity and state subsidies that lead to overcapacity and trade tensions.
Just like you, 70% customers choose long-term cooperation with BBN steel not only for our good product and service quality, good reputation in the international market, but also for our experienced one-stop raw material supply and further steel processing!
