19 global steel associations speak out on overcapacity

Nineteen steel industry associations in the Americas, Europe, Africa and Asia are calling for the governments of steelmaking economies to take a stand on 'persistent global excess capacity' in the steel sector.

The 19 associations in question want strong rules and remedies that reduce excess capacity, its impact and its causes and have emphasised that governments should use all available mechanisms and negotiation forums at their disposable, including the G20 Global Forum on Steel excess capacity.

The chief demands from the associations are as follows:-

1. Ensure the reduction of excess capacity.

2. Eliminate market-distorting subsidies and other support measures that contribute to excess capacity.

3. Uphold effective trade remedies to ensure a level playing-field driven by market forces.

4. Support stronger international rules against subsidies and preferences to state-controlled enterprises.

5. Enhance transparency and co-operation.

6. Create robust mechanisms to facilitate the exit of inefficient firms.

A statement released by industry groups (all of whom are listed below) stated: "We are grateful for the efforts made to date by the G20 and OECD governments to address excess capacity, and to support a level playing field at the G20 Global Forum on Steel Excess Capacity and OECD Steel Committee. Unfortunately, effective reductions in capacity and concrete actions to remove government measures that distort markets, including raw materials markets , have not been adequate to date. Efforts by governments to eliminate practices that lead to excess capacity should be redoubled. We are hopeful that the diligent efforts of Japan, the current G20 Chair, are successful in extending the G20 Global Forum on Steel Excess Capacity beyond 2019, and we urge all G20 and OECD steelmaking economies to pursue vigorous means to obtain substantive results on the critical problem of steel excess capacity."

The 19 steel associations behind the statement are:-

• Steel Manufacturers Association (SMA).

• American Iron and Steel Institute (AISI).

• EUROFER (European Steel Association).

• Canadian Steel Producers Association (CSPA).

• CANACERO (The Mexican Steel Association).

• Alacero (The Latin American Steel Association).

• Brazil Steel Institute.

• Turkish Steel Producers Association.

• Republican Association of Mining and Metallurgical Enterprises (AMME).

• The Japan Iron and Steel Federation (JISF).

• European Steel Tub Association (ESTA).

• Korea Iron and Steel Association (KOSA).

• Speciality Steel Industry of North America (SSINA).

• South African Iron and Steel Institute (SAISI).

• The Cold Formed Steel Bar Institute (CFSBI).

• Association of Enterprise UKRMETALURGPROM (Ukraine).

• Russian Steel Association.

• Indian Steel Association.

• The Committee on Pipe and Tube Imports (CPTI).