Global forum formed to reduce overcapacity
The United States government and others, including the European Union, are amping up the volume on the rhetoric in an effort to get China to reduce its overcapacity and overproduction of steel. It’s a move the domestic steel industry has been pushing for and its leaders have expressed gratitude for the additional pressure being placed on the People’s Republic. Now the question becomes whether all the talk will do any good.
It all started in July of last year when the issue of China’s steel industry was raised at a meeting of the G20, representing the world’s largest economies. From there, the G20 countries were joined by several others—all steel-producing countries and members of the Organization for Economic Cooperation and Development (OECD)—to form a 30-country group called the Global Forum on Steel Excess Capacity. The forum, which will report annually to the G20 ministers, is supposed to facilitate market-driven solutions to decrease excess capacity in the global steel market.
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