87th Session of the OECD Steel Committee - Chair's Statement | WPN World People News

At its 87th session on 26-27 September 2019, the OECD Steel Committee held in-depth discussions on challenges facing the global steel industry and policy approaches to encourage adjustment and ensure a level playing field in the sector. Key issues of discussion included global and regional steel market conditions and future outlook, steel trade policy developments, steelmaking capacity investments and trends in excess capacity, and policies to encourage restructuring and better market functioning in the steel industry. The Committee also discussed ways to enhance its ongoing work on mergers and acquisitions, barriers to exit and state enterprises in the steel sector, and agreed on the next steps of its subsidies work.

Delegates of the Steel Committee:

•expressed grave concerns about the deterioration of steel market conditions and the unexpected growth in global steelmaking capacity in the first half of 2019, despite the global demand conditions for steel and the downside risks to the outlook for the global economy and global steel markets;

•noted with deep concern increases in steelmaking capacity, and reiterated the need for further capacity reductions in relevant jurisdictions, including by facilitating the exit of inefficient producers and by supporting workers affected by plant closures;

•stressed that government interventions, market distorting support measures and resulting excess capacity have contributed to significant distortions in steel trade flows, that are affecting steel-producing economies and contributing to trade tensions;

•noted with concern certain border and behind-the-border measures, that are distorting steel markets and steel trade, not least affecting raw materials;

•discussed future work on consolidation and state enterprises in the steel sector, expressing concerns about the increasing cross-border activity of state enterprises; and

•urged members to extend the Global Forum on Steel Excess Capacity on its current basis.

Source: Organisation for Economic Co-operation and Development