Last week in Berlin, 30 countries – including China and the United States – met to make commitments on reducing excess capacity in their steel sectors.
The governments announced six “policy solutions” to address the problems of excess capacity, including setting targets for reducing crude steel capacity, refraining from “providing market-distorting subsidies,” removing measures that distort competition, promoting market-based approaches to resource allocation, facilitating the restructuring of the steel industry, and encouraging more open information-sharing on structural changes taking place. The group did not impose specific nor binding targets for these goals, causing the U.S. Administration and U.S. industry groups (such as the United Steel Workers and the American Iron and Steel Institute) to publicly express concerns that the Forum may not result in real progress on addressing excess capacity, and ISRI also believes there will be no impact felt in the recycling industry. The Forum’s participants will prepare a report next year for the G20 leaders that gives an account of progress made in individual countries towards meeting these policy goals.
Please contact Adina Renee Adler if you have any questions.