OECD concerns on steel market impact during COVID-19

The OECD Steel Committee expressed grave concern at its meeting recently over the deterioration in steel market conditions related to the COVID-19 crisis. 
The latest OECD data show that global steelmaking capacity could increase to 2,455.8 million metric tonnes (mmt) in 2020. While the gap between global capacity and production narrowed from 2016 to 2019, it is likely to widen to as much as 700 mmt this year due to overall capacity increases and production decreases resulting from COVID-19. The Steel Committee noted that new steelmaking capacities due to come into operation in the Middle East and Asia this year are set to exacerbate excess capacity.
During a virtual four-day meeting, the Committee also reiterated the need for further capacity reductions in relevant economies, including by facilitating the exit of inefficient producers and by supporting workers affected by plant closures.
OECD Steel Committee members, associates, and participants account for around 42% of global steel production in 2019.
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