The OECD Steel Committee in Paris has voiced concern regarding the global development of the steel market, referencing the fact that the problem of global steel overcapacities is still unsolved. According to calculations by the OECD, the sum was more than the joint steel production of India, North and South America, the EU, Japan and Turkey.
The Organisation for Economic Cooperation and Development (OECD) expects overcapacities to significantly increase over the next three years. By 2026, new capacities of around 158 million tons could be put into operation, according to a report by Tobias Aldenhoff, head of economic and trade policies at the German Steel Association (Wirtschaftsvereinigung Stahl).
In his opinion, the reports by the OECD prove that the pressure in the international markets will increase as a consequence. China alone has increased its steel exports in 2023 by 40% compared to the previous year. The Chinese export figures are approaching the peak values of 2016.
Aldenhoff says that the important thing is the OECD’s realisation that its members’ commercial and political instruments to combat unfair competition need to be strengthened. This also includes increased action against the circumvention of trade measures.
The OECD Steel Committee is seen as a unique forum where governments can come together. In Paris, more than 350 government representatives and steel experts met to deal with the current challenges of the steel industry and to find political solutions to increase openness and transparency on the steel markets. Through its work to decrease steel policies that distort the market and to foster structural changes, the OECD wants to do its part to ensure a strong and sustainable steel industry that continues to contribute to increasing economic wealth across the whole world.
Another item on the agenda at the Paris conference was the transition to a decarbonised steel industry and what that requires. Other current topics included the effects of subsidies on the development of global steel capacities and whether government-owned companies distort global steel markets. Another issue was how to avoid conflicts within the international steel trade.
Source: WV Stahl/OECD
