OECD raises alarm as planned steel plants are set to worsen glut
Chinese mills are adding millions of tonnes of new high-end capacity, just as demand for metal sheets in China evaporates as economic growth slows
Paris — The global steel industry could face a new supply glut if certain countries, which already contribute to overcapacity in the sector, bring on new steelmaking plants, the Organisation for Economic Co-operation and Development (OECD) steel committee said. A global oversupply of steel had eased after 2015, when excess capacity triggered shutdowns, bankruptcies and job cuts in the sector while setting the stage for US import tariffs. The committee, made up of representatives from 24 OECD countries and the EU, said on Wednesday that steelmaking capacity was nearly unchanged in 2018 after easing in 2017 and 2016. But it still far exceeded demand by 425.5-million tonnes amid low growth prospects for the global economy and the steel market, which look set to persist in 2019, the OECD committee said. “Many new investments continue to take place around the world and others are in the planning stages, including in regions where excess capacity is most prevalent,” the committee said aft...
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