Global Steel Industry Groups Call for Urgent Action On Steel Excess Capacity Crisis

OTTAWA, Oct. 22, 2019 (GLOBE NEWSWIRE) -- Nineteen steel industry associations in the Americas, Europe, Africa and Asia today called for the governments of steelmaking economies to step up efforts to effectively tackle persistent global excess capacity in the steel sector, including by quickly implementing strong rules and remedies that reduce excess capacity, its impact and its causes.  The industry groups emphasized that governments should use all available mechanisms and negotiation forums, including the G20 Global Forum on Steel Excess Capacity, to:

• Ensure the reduction of excess capacity;
• Eliminate market-distorting subsidies and other support measures that contribute to excess capacity;
• Uphold effective trade remedies to ensure a level playing-field driven by market forces;
• Support stronger international rules against subsidies and preferences to state-controlled enterprises;
• Enhance transparency and cooperation; and
• Create robust mechanisms to facilitate the exit of inefficient firms.  

The industry groups commended the September 30, 2019 statement by Ulf Zumkley, Chairman of the Organization for Economic Cooperation and Development's (OECD) Steel Committee, which expressed grave concerns about the unexpected growth of new steelmaking facilities in 2019, exacerbating global excess capacity and contributing to trade tensions.  Participants in the OECD Steel Committee reiterated the need for further capacity reductions in relevant steel-producing economies and urged members to extend the G20 Global Forum on Steel Excess Capacity past its current expiration in 2019.   

"We are grateful for the efforts made to date by the G20 and OECD governments to address excess capacity, and to support a playing field at the G20 Global Forum on Steel Excess Capacity and OECD Steel Committee," the industry groups said.  "Unfortunately, effective reductions in capacity and concrete actions to remove government measures that distort markets, including raw materials markets, have not been adequate to date.  Efforts by governments to eliminate practices that lead to excess capacity should be redoubled.  We are hopeful that the diligent efforts of Japan, the current G20 Chair, are successful in extending the G20 Global Forum on Steel Excess Capacity beyond 2019, and we urge all G20 and OECD steelmaking economies to pursue all vigorous means to obtain substantive results on the critical problem of steel excess capacity." 

The steel industry groups issuing the call for urgent action include representatives of:  Steel Manufacturers Association (SMA), American Iron and Steel Institute (AISI), EUROFER (European Steel Association), Canadian Steel Producers Association (CSPA), CANACERO (the Mexican Steel Association), Alacero (the Latin American Steel Association), Brazil Steel Institute, Turkish Steel Producers Association, Republican Association of Mining and Metallurgical Enterprises (AMME), The Japan Iron and Steel Federation (JISF), European Steel Tube Association (ESTA), Korea Iron and Steel Association (KOSA),  Specialty Steel Industry of North America (SSINA), South African Iron and Steel Institute (SAISI), The Cold Formed Steel Bar Institute (CFSBI),  Association of Enterprises UKRMETALURGPROM (Ukraine),  Russian Steel Association, Indian Steel Association, and The Committee on Pipe and Tube Imports (CPTI).

Contacts:
SMA ? Phil Bell, [email protected], 202.296.1515
AISI ? Lisa Harrison, [email protected], 202.452.7115
CSPA ? Catherine Cobden, [email protected], 613.238.6049
CANACERO ? Salvador Quesada, [email protected],   52 (55) 5448-8162
EUROFER ? Charles de Lusignan, [email protected],  0032 2738 79 35
Alacero ? Fernanda Valente, [email protected], (55 11) 3195-5803
Brazil Steel Institute ? Débora Oliveira, [email protected], 55 (21) 3445-6327 | 6300
JISF ? Shigeru Hagiuda, [email protected], 81 3 3669 4835
Russian Steel ? Maria Simonova, [email protected], 79153226225
CFSBI ? Mark Redding, [email protected], 630.868.1234
Turkish Steel Producers Association ? Veysel Yayan, [email protected], 903124663734
ESTA ? Dominique Richardot, [email protected], 33 1 41 31 56 45
AMME ? Alisher Zholdybayev, [email protected], 7 7172 689 601
SAISI ? Charles Dednam, [email protected], 27 12 380 0900
KOSA ?  Min-Chul Lee, [email protected], 82 02 559 3501
Ukrmetalurgprom (Ukraine) ? Oleksandr Kalenkov, [email protected], 0442790525
SSINA ? Larry Lasoff, [email protected], 202.342.8530
CPTI ? Tamara Browne, [email protected], 202.223.1700
Indian Steel Association ? Arnab Kumar Hazra, [email protected], 919958599032

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/2802f37f-ead7-4f98-9d9b-3acfd7ff3c83