World Steel Association: "G20 Countries Must Collaborate to Resolve Steel Supply Surplus"

[Asia Economy Reporter Hwang Yoon-joo] The Korea Iron & Steel Association, along with major steel associations and organizations from the Americas, Europe, Asia, and Africa, argued that there is a need to coordinate subsidy policies among countries to resolve the global steel oversupply issue. They also emphasized that China, which withdrew from the forum, should return and jointly discuss the oversupply problem.

The Korea Iron & Steel Association announced on the 23rd that it plans to release a joint statement with major global steel associations before the ministerial-level meeting of the Steel Global Forum on the 26th, containing these points.

The major associations expressed concern over the severe contraction in steel demand caused by the worldwide spread of the novel coronavirus infection (COVID-19), noting that this has weakened the efforts and effects to normalize oversupply over the three years since the forum's establishment.

They also reaffirmed that global macroeconomic recovery and imbalances in steel production are key factors destabilizing the world steel market, and resolved to continuously monitor steel production status based on the policy standards and recommendations agreed upon by forum member countries in the Berlin ministerial meeting report.

Furthermore, the main text emphasized that the forum's transparency and related policies are becoming increasingly important to resolve the chronic oversupply issue, presenting a resolution containing seven points to member countries.

The resolution includes ▲ establishing strong regulations related to national industrial subsidies and other supports that cause market disruption and oversupply ▲ fostering a market-driven competitive environment and fair trade through effective trade remedy measures ▲ disclosing investments influenced by non-market factors or subsidies through analysis of factors expanding steel production capacity ▲ announcing reliable steel demand forecasts related to investment regions ▲ enhancing transparency of forum operations through information sharing and open discussions ▲ emphasizing to G20 leaders the seriousness of steel oversupply and the need for responsive efforts, among others.

In particular, the resolution urged the return of China and other countries that withdrew from the forum, reiterating the importance of active participation by all G20 countries.

This content was produced with the assistance of AI translation services.