OECD steel meeting seeks solution to global steel woes

To address the challenges of excess capacity facing the global steel industry, high-level government officials from nearly 30 countries and international organizations in charge of steel-related industrial and trade policies met here on Monday.

The meeting was co-organized by the Organisation for Economic Co-operation and Development (OECD) and Belgian authorities with an aim to improve the economic viability of the global steel industry and help reduce trade frictions amongst trading partners.

"The excess capacity problem currently facing the steel sector is a universal one for all steel-producing countries in the world. It is a common challenge that needs to be confronted by all countries together," according to a position paper released by the Chinese delegation during the meeting.

The Chinese delegation blamed notable economic slowdown, sluggish recovery, and decline in infrastructure construction, industrial development and household consumption since the onset of international financial crisis in 2008 for excess capacity in the steel and some other industries.

"The shared problem needs to be tackled with shared efforts," the paper says, adding it is incorrect to blame international trade for the difficulties facing the steel industry.

China champions "free and open international trade for the steel industry," it notes.

"Frequent use of trade remedy measures and other import-restrictive measures is not addressing the root cause of global steel overcapacity, and is detrimental to the division of labor, cooperation, and sensible layout of the global steel industry," the paper reads.

The Chinese delegation attending the symposium believes "it is all the more important for countries to avoid taking any trade restrictive measures."

The position paper also outlines China's achievements and plans in cutting its overcapacity.

As a major producer, consumer, and trader of steel, China shut down outdated facilities with total production capacity of over 90 million tons from 2011 to 2015.

In the coming five years, China will further reduce crude steel capacity by 100 million to 150 million tons, according to the paper.

China believes countries need to work on both the supply side and the demand side, and vigorously expand the demand to tackle excess capacity.

"China's Belt and Road Initiative set out a vision to strengthen connectivity and infrastructure development of countries along the route. This has fuelled their demand for steel, and delivered win-win outcomes through social and economic development," the position paper reads. Endit