AISI Welcomes New Framework to Tackle Global Steel Overcapacity

Steel News  |  2026-10-01 03:15:10   |   By

AISI emphasized that effective implementation would be essential to achieving meaningful improvements in global steel market conditions.

SEATTLE (Scrap Monster): The American Iron and Steel Institute (AISI) has welcomed a new international agreement aimed at curbing excess steel production, eliminating market-distorting subsidies, and strengthening enforcement against unfair trade practices.

Kevin Dempsey, AISI President and CEO, praised U.S. leadership in securing the Comprehensive Framework for Joint Action, adopted by members of the Global Forum on Steel Excess Capacity (GFSEC). The agreement seeks to address mounting concerns over global steel oversupply, he noted.

Dempsey commended Ambassador Greer and the Trump administration for advancing international cooperation to tackle subsidized steel exports, particularly from China and other non-market economies. Also, he highlighted the administration’s use of Section 232 tariffs and other trade measures to support domestic steelmakers.

The newly adopted framework calls on participating governments to pursue measures against subsidies and other policies that distort international steel markets. It also seeks to strengthen safeguards against the circumvention of existing trade restrictions.

AISI emphasized that effective implementation would be essential to achieving meaningful improvements in global steel market conditions. It urged GFSEC members to formulate concrete policy actions in support of the objectives.

As per the Organization for Economic Cooperation and Development (OECD) estimates, global steel overcapacity could climb to 745 million metric tons by 2028, compared with more than 640 million metric tons in 2025.