Steel associations across the globe urge action on China’s new steel policy
Ten steel associations from the Americas and Europe have called local governments to take “urgent” actions against China’s new steel policy, the trade groups said in a joint letter Tuesday.
According to the document, “there’s a strong consensus against the rising tide of exports from state-owned, supported or controlled steel industries.” The statement is a clear reference to China, “whose massive and increasing overcapacity in an era of slowing growth has already destabilized the global steel market and trade flows.”
The document follows a joint letter submitted by eight steel associations in April this year, which urged Chinese government to end subsidies on steel products.
The new letter was signed by the following steel groups: Latin America Steel Association (Alacero); The American Iron and Steel Institute (AISI); Mexico’s Iron and Steel Industry Chamber (Canacero); Brazil Steel Institute (IABr); the Canadian Steel Producers Association (CSPA); the European Steel Association (Eurofer); the Steel Manufacturers Association (SMA); the Committee on Pipe and Tube Imports (CPTI); the Specialty Steel Industry of North America (SSINA) and the Turkish Steel Producers Association.
The document said recent reports shared at an OECD meeting in Paris made it evident that “a new normal has taken hold, characterized by slowed growth” with “all regions suffering from a dramatic increase in unfair steel imports that is fueled by massive global overcapacity.”
“Immediate and effective action is urgent,” the document said.
Regarding China’s new steel policy, the ten associations said China does not meet the test of being a market economy.
“The existence of overcapacity itself, estimated at up to 425 million mt, and the lack of an effective policy to reduce it are evidence that China is still a top-down state-driven economy.”