Steel Trade Bodies React to Global Forum on Steel Excess Capacity

SEATTLE (Scrap Monster): The world steel associations including the European Steel Association (EUROFER) and the American Iron and Steel Institute (AISI) have reacted to the recommendations made recently by the ministerial-level meeting of the Global Forum on Steel Excess Capacity.

The report released by the G20 Global Forum proposes principles and recommendations which call for countries to dismantle market subsidies and other government support measures and share data and information with other countries. Further, it urges members of the Global Forum to enhance transparency through regular exchange of information for review, analysis and assessment at each meeting.

In its reaction, AISI president and CEO, Thomas J. Gibson stated that the measures outlined in the Global Forum report will help to ensure a level-playing field between private sector steel producers and state-owned enterprises. Further, he stated that promises alone will not solve the problem and that concrete actions by governments are required. The US is one of the markets worst affected by dumping of unfairly traded imports of steel products from other countries, Gibson noted. Meantime, he also appreciated the commitments of the US government to address the global steel overcapacity crisis.

Axel Eggert, Director general of EUROFER congratulated the German Presidency of the Global Forum, the European Commission and the EU member states for developing a comprehensive policy inventory for steel. The agreement is a significant step forward as all market distorting policies and practices beyond WTO rules are targeted. As per estimates, global steel excess capacity had totaled around 740 million tonnes in 2016. The framework represents real political commitment in addressing the root causes of global steel excess capacity, Eggert added.