Press releases » Global Forum on Steel Excess Capacity must "Finish the job it has started", says EUROFER
Global Forum on Steel Excess Capacity must "Finish the job it has started", says EUROFER
Downloads and links
Recent updates
Brussels, 27 March 2019 – Ahead of the Global Forum on Steel Excess Capacity (GFSEC) meeting on 28-29 March, the European Steel Association (EUROFER) calls for the forum’s mandate to be extended, ahead of its expiry in November. The GFSEC has begun an important transparency and policy process, but its work is not yet complete.
“We call on members of the Global Forum to agree on a continuation of the forum’s mandate beyond November 2019”, said Axel Eggert, Director General of EUROFER. “Continued international work on excess capacity and related government support measures would contribute to the sustainability of our global industry.”
The GFSEC was established in late 2016, on the instruction of G20 Leaders. The Forum set out to gather information and report on the evolution of steel supply and demand conditions, steel production capacity, and government policies that lead to global overcapacity, such as subsidies.
“GFSEC’s work has already produced results, such as detailed statistics on steel capacity and production around the world and has instigated work to cut excess capacity where it is needed most”, added Mr Eggert.
However, while progress has been made – notably an agreement in December 2017 on principles and recommendations whereby countries and regions dismantle market-distorting subsidies and other government support measures and share data and information on the process of capacity reduction – this is still the beginning of the process.
“Global steel overcapacity is still at least 550 million tonnes, according to the OECD”, emphasised Mr Eggert. “We are still very much at the beginning of the process, and there is clearly a need for the GFSEC’s mandate to be extended”.
Since the Forum’s first meeting two-and-a-half years ago, momentum has been steadily building; there is currently a clear level of commitment and resolve among the world’s major steel-producing countries to effectively tackle excess steel capacity, including its root causes. This momentum should not be lost, EUROFER believes.
“In a world where global overcapacity is still very much present – and with proliferating trade distortions – there is a greater need than ever for the GFSEC”, concluded Mr Eggert. “Not renewing the mandate of the Global Forum would mean abandoning the global steel industry when it is still at a perilous juncture. Effective multilateral cooperation is needed in order to preserve fair and free trade in this essential sector”.
Contact
Charles de Lusignan, Spokesperson and head of communications, +32 2 738 79 35, (charles@eurofer.be)
About the European Steel Association (EUROFER)
EUROFER AISBL is located in Brussels and was founded in 1976. It represents the entirety of steel production in the European Union. EUROFER members are steel companies and national steel federations throughout the EU. The major steel companies and national steel federations in Switzerland and Turkey are associate members.
About the European steel industry
The European steel industry is a world leader in innovation and environmental sustainability. It has a turnover of around €170 billion and directly employs 330,000 highly-skilled people, producing on average 160 million tonnes of steel per year. More than 500 steel production sites across 22 EU Member States provide direct and indirect employment to millions more European citizens. Closely integrated with Europe’s manufacturing and construction industries, steel is the backbone for development, growth and employment in Europe.
Steel is the most versatile industrial material in the world. The thousands of different grades and types of steel developed by the industry make the modern world possible. Steel is 100% recyclable and therefore is a fundamental part of the circular economy. As a basic engineering material, steel is also an essential factor in the development and deployment of innovative, CO2-mitigating technologies, improving resource efficiency and fostering sustainable development in Europe.
Download files or visit links related to this content
Brussels, 10 September 2024 – The Draghi Report thoroughly identifies the bottlenecks to both the EU industry's decarbonisation and competitiveness. The proposed recommendations for energy-intensive industries, including on energy, trade, carbon leakage, financing and lead markets, should be integrated into the upcoming Clean Industrial Deal and implemented with concrete measures as a matter of urgency. Alignment across different policies is crucial, and should be accompanied by sector-specific initiatives to enable the transition of each industry including steel, asks the European Steel Association.
Brussels, 05 September 2024 – The latest developments in the steel sector and across critical value chains are worrying signs of a steady deterioration, endangering the survival and the transition of steelmakers and their key manufacturing customers in Europe, such as automotive. A Clean Industrial Deal including swift and radical measures in EU industrial, energy and trade policies, is the last chance to ensure Europe’s prosperity and shield European industry from cheap imports driven by third countries’ unfair trade practices, overcapacity and lower climate ambition, urges the European Steel Association.
Brussels, 25 July 2024 – Major indicators in the European steel market show a steeper-than-expected downward trend, further impacting the outlook for this year and the next. Poor demand conditions, driven by ongoing factors such as high energy prices, persistent inflation, economic uncertainty and geopolitical tensions, are exacerbated by a manufacturing crisis affecting the largest steel-using sectors, including construction and automotive. According to EUROFER’s latest Economic and Steel Market Outlook, apparent steel consumption is further deteriorating. After a slump (-3.1%) in the first quarter of 2024, its rebound for the full year has been revised downwards (to +1.4% from +3.2%), as well as for 2025 (+4.1% from +5.6%). Similarly, output in steel-using sectors, after a decline in the first quarter (-1.9%), is projected to experience a deeper-than-expected recession (-1.6% from -1%). A recovery is anticipated only in 2025 (+2.3%). Steel imports continue to show historically high shares (27%).