At the ministerial meeting of the Global Forum on Steel Excess Capacity (GFSEC) held recently in Gqeberha, South Africa, ministers and senior representatives from 29 participating countries discussed the worsening global steel crisis and the distortions caused by excess capacity, reaffirming their shared commitment to address the persistent and worsening global steel overcapacity problem.
According to the ministerial statement, global excess capacity reached an estimated 601 million mt in 2024 and is projected to rise to 721 million mt by 2027. The forum noted that this trend undermines market stability, threatens fair competition, and delays the steel industry’s decarbonization efforts.
The ministers underlined that addressing global steel overcapacity remains critical to ensuring sustainable growth, market-based competition, and the long-term viability of the global steel industry.
New coordinated framework for policy action
Ministers agreed to develop a new coordinated framework for policy action against non-market measures contributing to excess capacity. The framework will be drafted by the working group in November 2025 and finalized by June 2026.
GFSEC members are also committed to,
- strengthening transparency through the exchange of data on steel production, “melt and pour” origins, and state support measures,
- monitoring non-market policies and practices, as well as financing projects in the steel sector,
- information and awareness-raising activities with steel-producing countries regarding joining the global forum through the launch of a new GFSEC data and visualization platform.
Members have agreed to continue close cooperation with the OECD and have invited additional countries to join the forum to reinforce collective efforts against steel market distortions.
