The European Steel Association (EUROFER) has stated that the European Union, along with the 29 members of the Global Forum on Steel Excess Capacity (GFSEC), has called upon G20 leaders to address the massive global excess capacity in steel production. EUROFER said it welcomes the guidance and leadership of the EU and the European Commission in the Global Forum on Steel Excess Capacity.
Despite the global excess steel capacity, new steelmaking capacity is coming online, EUROFER noted, adding that excess capacity leads to collapsing prices, costing jobs, undermining investment, and unnecessarily harming the environment.
In Europe, steel demand fell 25 percent in the second quarter this year, and production was, at the peak of the restrictions, halved compared to normal levels. Meanwhile, other regions continued to produce steel and continued capacity buildups – volumes, EUROFER said, which will almost certainly target the EU’s open market once demand again picks up. Only the EU has significantly reduced capacity over the past decade, cutting over 22 million mt, EUROFER said.
Steel industries around the world have commended the commitments taken by the members of the steel forum to create transparency in the regional market and capacity evolutions and review capacity increases. India, Saudi Arabia and China have refused to continue their support for the forum, as SteelOrbis understands.