The ASI has called on the global community to broaden efforts to address excess capacity in downstream steel consuming industries.
In a keynote address via video link to the OECD’s Global Forum on Steel Excess Capacity (GFSEC) ministerial meeting in Gqeberha, South Africa, ASI chief executive Mark Cain said a surge in very low-priced imported steel into Australia was devastating the Australian industry.
An ASI-initiated Safeguard application is being finalised in an attempt to provide relief for the local industry, but a concerted international response was needed to address global overcapacity.
“One conclusion from this experience is that even if meaningful reductions can be made in the excess capacity for crude steel production, and we clearly need to continue to strive for that outcome, this may not solve the fundamental overcapacity,” Mark told the international meeting of Trade ministers on October 10.
Australia is the current chair of the GFSEC, with Australia’s Assistant Minister for Foreign Affairs and Trade Matt Thistlethwaite chairing the meeting.
Ministers at the meeting agreed to develop the key elements of a framework policy by June 2026. See the full Ministerial Statement. Global steel excess capacity is expected to rise from 601 million tonnes in 2024 to 721 million tonnes by 2027, reaching its highest level in a decade and exceeding the combined production of countries participating in the meeting. Ongoing information on global excess capacity is available from the GFSEC Steel Excess Capacity Monitoring Bulletin
The ASI is the peak body for the Australian steel industry, representing 700 companies and 7,000 members. Steel generates 100,000 jobs and $30b in annual revenue in Australia.
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For more information on this press release, please contact ASI marketing and communications manager Steven Andrew on 0473 480 964 or [email protected]
