OECD Steel Committee sees tentative and vulnerable recovery amid excess capacity and market distortions | WPN World People News

A modest recovery is under way in the global steel market but structural imbalances remain acute amid sluggish demand growth expected in the long-term demand, the OECD Steel Committee said at the end of its meeting this week. The Committee reiterated the urgency of reducing excess capacity and called for the removal of market distortions created by direct and indirect government subsidies and other support. Steel markets should remain as open and free of distortion as possible, it said.

The Committee also expressed concerns about the high level of trade frictions and stressed the need to fight protectionism, including all unfair trade practices, and recognised the role of legitimate trade defense instruments.

The OECD Steel Committee has 25 members (Austria, Belgium, Canada, the Czech Republic, Finland, France, Germany, Hungary, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, Poland, Portugal, the Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Turkey, the UK, the US and the EU).

In addition, four associates (Brazil, Romania, Russia and Ukraine) and seven participants (Argentina, Bulgaria, Egypt, India, Malaysia, South Africa and Chinese Taipei) bring their perspectives to the Committee’s work. Australia, Chile, China, Colombia, Kazakhstan and the Philippines also participate in some Steel Committee meetings.

OECD Steel Committee members, associates and participants account for around 45% of global production and 75% of global exports of steel.

Working with over 100 countries, the OECD is a global policy forum that promotes policies to improve the economic and social well-being of people around the world.

Source: Organization for Economic Co-operation and Development