The Organization of Economic Cooperation and Development (OECD) held the 83rd Session of the OECD Steel Committee on September 28-29 in Paris.
The two-day Committee meeting was spent reviewing steel production and consumption data: while global growth remains strong and steel market conditions improved moderately in 2017 (with production growth at 4.3 percent), it is uncertain if this recovery is sustainable given slow demand growth and global policies insecurities that affect international trade, global financial markets, and overall investment conditions. Global steelmaking capacity is slowly declining, but excess capacity remains very high and continues to be a major challenge to the global steel industry. Although no fingers were pointed, there was a common thread of disquiet about China’s excess capacity.
Earlier in the week, the government-to-government Global Forum on Excess Capacity was held; participants said it was a useful exchange of information on production, and they are preparing policy recommendations to be presented to G20 leaders in November.
Although ISRI attended the Committee meeting through an affiliation with the Business and Industry Advisory Committee (BIAC) to the OECD, the time spent with the U.S. government and industry delegation was invaluable to gaining their perspectives as the official discussion proceeded – mainly pessimism as China’s excess capacity (although in slight decline) continues to unfairly skew the market. China was noticeably absent from the weeklong discussions.
Please contact Adina Renee Adler with any questions.