At the Global Forum on Iron and Steel Excess Capacity (GFSEC) ministerial meeting held recently in Gqeberha, South Africa, ministers and senior representatives from 29 participating countries discussed the worsening global iron and steel crisis and the distortions caused by excess capacity, reaffirming their shared commitment to a solution The ongoing and worsening global problem of overcapacity in the iron and steel industry.
Global overcapacity reached an estimated 601 million tonnes in 2024 and is forecast to rise to 721 million tonnes by 2027, ministers said. The Forum noted that this trend undermines market stability, threatens fair competition and delays efforts to decarbonize the steel industry.
Ministers stressed that addressing global steel overcapacity remains critical to ensuring sustainable growth, market competition and long-term viability global steel industry.
New coordinated framework for policy action
Ministers agreed to develop a new coordinated framework for policy action against non-market measures that promote excess capacity. The framework will be developed by a working group in November 2025 and finalized by June 2026.
GFSEC members are also committed
- to strengthening transparency by sharing data on steel production, melt and pour origins and measures state support
- monitoring of non-market policies and practices, as well as financing
