Steel industry associations the world over have repeatedly called on global governments to participate in the Global Forum on Steel Excess Capacity (GFSEC). 

 

They’re concerned about the recent increase in steel overcapacity stemming from sunken demand, which itself is a consequence of the COVID-19 pandemic and its impact on the construction, infrastructure, oil and gas, and automobiles industries. The regional disparity in steelmaking recovery is a factor that could lead to the “destabilization of the international steel market,” read a joint press release from US, European, Asian and African steel associations. 

 

The agencies are urging international leaders to avoid subsidizing the industry because it leads to excess capacity and distortion. Moreover, they also believe that trade remedies and forecasted demand will play a crucial role solving the overcapacity problem. 

 

The associations involved include the American Iron and Steel Institute, EUROFER, Japan Iron and Steel Federation, Alacero and Brazil Steel Institute, among others.     

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