OECD express deep concern on steel market deterioration
02 April 2021
The OECD Steel Committee expressed deep concern as it met over the deterioration in steel market conditions related to the COVID-19 crisis, and agreed to accelerate work to build a comprehensive database of government support provided to steel producers in major steel-producing economies.
The latest OECD data show that global steelmaking capacity increased to 2,453.2 million metric tonnes (mmt) in 2020, and the gap between global capacity and production widened to 625.4 mmt. Global demand is likely to only partially recover in the near term, with the level of demand for finished steel in 2021 expected to remain below pre-pandemic levels in most countries.
During a virtual four-day meeting, the Committee discussed the state of its work on building a database of subsidies in the steel sector. Members agreed to resume collecting subsidy data on the steel-producing jurisdictions, including those where recent data on increasing production has raised concerns about potential government support. This marks a further step towards improving transparency on support measures and will feed into future work examining the impact of these measures on global steel markets.