The OECD Committee on the Steel Industry warns that the global overcapacity crisis in the steel industry is growing

According to the statement made by the Chairman of the OECD Steel Committee, Cheryl Grunweg, after its 99th session on March 23-24, 2026 in Paris, which was attended by 288 government officials and industry representatives from 42 delegations, global steel markets are under new strain as overcapacity continues to expand, Chinese exports are reaching record levels and demand remains low, raising serious concerns about the long-term sustainability of the sector.

Global steel demand remains under pressure

The OECD Steel Committee said global steel demand has been declining for four consecutive years, with a decline exceeding two percent in 2025. Although a moderate recovery is expected in 2026, the outlook remains uncertain, especially due to the geopolitical risks associated with the Middle East.

Steel demand in China is expected to continue its structural decline, albeit at a slower pace than the estimated 6.5 percent drop recorded in 2025. Meanwhile, in the OECD region, only a partial recovery is forecast after a 1.5 percent decline last year. In contrast, emerging regions such as India, Southeast Asia, and the MENA region continue to show relatively stronger growth potential.

Global overcapacity reaches record levels

Global excess steel production capacity increased to 640 million tons in 2025, exceeding total OECD steel production by more than 200 million tons, according to OECD Steel