Eliminate government interference in steel production. That is the message from steel associations around the world to the Chinese government.

Eight national and regional associations – including the American Iron and Steel Institute (AISI) and the European Steel Association (EUROFER) – have jointly expressed their concern over China’s recently published Adjustment Policy 2015 which, it is claimed, fails to address the root causes of the country’s current overcapacity problem. Instead, it allows for the continuity of governmental control and financial support for the steel industry and continues to reflect a top-down and state-dominated approach to industry reforms.

According to Alacero (the Latin American Steel Association) the Adjustment Policy 2015 maintains an environment where market forces do not apply.

The basic message to the Chinese is eliminate government interference and subsidies and let market forces dictate industry outcomes.