Steel industry associations in the Americas, Europe, Africa and Asia are urging their governments to intensify efforts to confront and solve the issue of excess capacity in the global steel sector.
Apparently, current methods just don’t seem to be working effectively!
The 19 associations involved released a statement, urging their various governments into action including implementing “strong rules and remedies that reduce excess capacity, its impact and causes.”
Just get some strong rules going! Sounds like a simple fix, right?
The solution becomes more complicated as the unexpected growth of new steelmaking facilities have contributed to trade tensions and have aroused some concern. Wherever could those be? The steel industries concurrently agree that the systems in place aren’t working and that “efforts by the governments to eliminate practices that lead to excess capacity should be doubled.” And they also praised a September statement from the Organization for Economic Cooperation and Development that expressed concern over the recent capacity expansions.
In the statement the associations said they’re “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.” That means these industries want these global organizations to keep talking about fixes to the overcapacity problem.
But let’s be clear about where the overcapacity problem starts and stops: In China.