The Organisation for Economic Co-operation and Development (OECD) Steel Committee warned of growing steel overcapacity, driven mainly by a sharp increase in low-priced steel exports, and estimated that it could reach 721 million tons by 2027.
In particular, it was highlighted that China’s steel exports doubled since 2020, reaching 118 million tons in 2024, while its imports have fallen by almost 80%. This scenario carries a direct impact on global trade due to the oversupply of Chinese manufacturers. By producing exponentially more than its domestic market needs, products and manufactures, such as steel, flood the rest of the world with disproportionate subsidies.
The Committee identified economies where steel capacity is growing rapidly, such as China, as one of the structural causes of the current crisis. Significant Chinese subsidies in 2024, including subsidies, tax incentives, differential electricity prices and below-market loans to steel companies in China and other countries, will exacerbate steel overcapacity problems and pose additional challenges to international trade and industry stability.
Faced with this scenario, they reiterated the need to strengthen international cooperation to address the current challenges where governments, experts and industry players can exchange best practices, discuss public policy tools and advance solutions to ensure fair competition.
To read the full statement of the Chairman of the OECD Steel Committee, Ulf Zumkley,