International Steel Mills
September 6, 2016
G20 Forms Global Forum on Excess Steel Capacity
Written by John Packard
The G20 group of nations released their thoughts regarding excess steel capacity and what they are doing to rectify the situation (essentially they are kicking the can to 2017 when they will meet again and hear from an OECD committee on the subject).
China has promised to cut steel production by 45 million metric tons (49.6 million net tons) this year but, they admitted last month that they are behind in reaching that modest goal. In January China promised to remove 100 to 150 million metric tons of steel production by the year 2020 (110 million to 165 million net tons). However, the belief is the Chinese will need to remove 300 million metric tons (330 million net tons) in order to get back to balance capacity with demand.
