Posted on 23 Oct 2020
Global steelmakers associations have joined forces to issue a statement requesting governments to intensify their work in the Global Forum on Steel Excess Capacity (GFSEC).
In a letter seen by Kallanish, the associations confirmed that at a time when coronavirus is impacting global demand, overcapacity is projected to resume growth after four years of reduction from 2016-2019.
“The associations noted the uneven state of recovery in macro-economic conditions and steel production across the world and are particularly concerned about a risk of potential destabilisation of international steel markets,” the letter explains.
Last month the OECD said overcapacity is expected to resume growth in 2020, reaching 700 million tonnes globally, up by over 40mt on last year.
The letter is signed by steelmakers associations across Europe, North America, Asia, Latin America and Turkey. It does not include the Chinese and Indian associations. The signatory associations, however, state that they call “…on non-participating governments to resume active participation in the GFSEC’s work.”
“Effectively addressing the global steel crisis is in the interest of all economies, steel producers, and steel consumers worldwide, and requires the active engagement of all G20 economies,” they conclude.
Source:Kallanish
