AISI welcomes GFSEC agreement to reduce excess capacity

The American Iron and Steel Institute (AISI), along with fifteen other steel industry associations from around the world, welcomed the agreement of most members of the Global Steel Overcapacity Forum (GFSEC) to continue their work to reduce excess steel capacity. The associations also called on dissenting members to reconsider their position as soon as possible.

Metals industry groups praised the leadership of the Japanese government over the past year for making significant progress at the forum. They hoped the Forum's recommendations would translate into action, especially at a time when global steel oversupply and market-disruptive policies pose a huge threat to the industry. The groups noted that they are pleased that the vast majority of Forum members have committed themselves to making meaningful efforts to address the global steel surplus.

The groups called on governments in steel economies around the world to redouble their efforts to address the problem by removing support measures that lead to overcapacity and by imposing strict rules to limit overcapacity in their respective countries.

According to the latest OECD estimates, the global steel surplus capacity today stands at nearly 440 million metric tons. It has grown by almost 6.5% over last year.