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OECD Steel Committee Gravely Concerned about Impact of COVID19 on Steel Market

Steel News - Published on Wed, 30 Sep 2020

Image Source: COVID19 OECD Steel Overcapacity
The OECD Steel Committee has expressed grave concern at its meeting this week over the deterioration in steel market conditions related to the COVID-19 crisis. The slump in demand caused by the global pandemic comes as steel production and inventories continue to grow in China. The Committee also noted with concern that the difficult market conditions were causing significant job losses in the industry. The latest OECD data show that global steelmaking capacity could increase to 2,455.8 million tonnes in 2020. While the gap between global capacity and production narrowed from 2016 to 2019, it is likely to widen to as much as 700 million tonnes this year due to overall capacity increases and production decreases resulting from COVID-19. The Steel Committee noted that new steelmaking capacities due to come into operation in the Middle East and Asia this year are set to exacerbate excess capacity.

During a virtual four-day meeting, the Committee also reiterated the need for further capacity reductions in relevant economies, including by facilitating the exit of inefficient producers and by supporting workers affected by plant closures.

The OECD Steel Committee has 25 members (Austria, Belgium, Canada, the Czech Republic, Finland, France, Germany, Hungary, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, Poland, Portugal, the Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Turkey, the UK, the US and the EU). In addition, five associates (Brazil, Kazakhstan, Romania, Russia and Ukraine) and seven participants (Argentina, Bulgaria, Egypt, India, Malaysia, South Africa and Chinese Taipei) bring their perspectives to the Committee’s work. A number of other economies also participate in some Steel Committee meetings as invitees.

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Posted By : Yogender Pancholi on Wed, 30 Sep 2020
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