OECD'S STEEL COMMITTEE CALLS FOR IMMEDIATE ACTION ABOUT EXCESS OF STEEL CAPACITY

Immediate action is needed to address the challenge of excess global steel capacity, according to industry and government officials at the OECD's Steel Committee meeting in Paris on 30 November and 1 December 2015.

The Committee:

·        called for immediate action to address the excess capacity challenge and its effects in the steel sector;

·        in cooperation with all actors concerned, members expressed their intention to organise a High-Level meeting on how best to address that challenge and mitigate these effects in the first half of 2016;

·        exchanged views on past experiences with restructuring in the steel industry and their relevance for the current steel crisis;

·        exchanged views on the sluggish growth of the global steel market, the weak financial health of steelmaking companies, and expressed concerns about the economic and social implications of a further deterioration of the outlook;

·        discussed new information on public support measures for new steelmaking capacity and agreed to continue examining government interventions;

·        expressed concerns about mounting frictions in steel trade;

·        discussed the importance of innovation for the long-term performance of the steel industry, and agreed to examine policy settings which  encourage more efficient allocation of resources in the sector; and

·        released a document on environmental innovations in steel and highlighted the importance of continuing to pursue innovation to help mitigate climate change by reducing greenhouse gas emissions.