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Global Forum on Steel Excess Capacity members have been engaging industry and key stakeholders in their exchanges since the establishment of the GFSEC in 2016.

 

Over the past years, several open events have been organised with the participation of steel industry representatives around the world.

Thematic stakeholder events in 2020

Emergent trends affecting steel excess capacity: The impacts of Covid-19 and the move towards a circular economy

Stakeholder focus event, 7 July 2020

 

The impacts of Covid-19 on global steel markets and long-term factors with implications for steel demand and excess capacity were the focus topics of the GFSEC stakeholder event in July 2020. The event attracted more than 130 participants, including representatives from steel associations, steel experts, and government officials from around the world.

 

Session 1. The Covid-19 pandemic: impacts on steel markets and excess capacity

The Covid-19 pandemic is leading to a sharp decline in steel demand around the world, and to an increase in excess capacity. While there are many different views and open questions about the speed of the eventual recovery, it may take quite some time for steel demand to fully recover, highlighting the urgency of continuing to address the excess capacity problem facing the global steel industry. This session fostered open discussion between industry stakeholders and government officials including on the impacts of Covid-19 on steel markets and the expected recovery path, policy responses to the crisis, and the longer-term effects that the crisis may have on excess capacity and the overall health of the global steel industry. 

Presentations

 

Session 2. The longer term: circular economy trends and other long-term factors with implications for future steel demand and excess capacity

Over the longer term, there are many uncertainties about possible behavioural changes resulting from the Covid-19 pandemic that could alter how people move, work and consume, all of which might accelerate longer-term trends, including the move towards the circular economy. Steel – an infinitely recyclable material – is expected to play a crucial role in the circular economy, which provides a comprehensive framework to reduce waste and to design products in a way to be reused, remanufactured and recycled, eventually accelerating the decoupling of economic growth and material inputs. This decoupling will have implications for how much steel society will use in the future and how much steelmaking capacity is needed to meet that future demand. This session enabled substantive discussion on the move towards a circular economy and the implications for steel demand and excess capacity in the steel sector.

Presentations

 

Session 3. Key messages from industry and wrap-up

New sources of steel demand and steel market developments in the ASEAN region

Stakeholder focus event, March 2020 (postponed)

 

While Covid-19 and consequent measures led to a postponement of the March 2020 events, the materials developed for the GFSEC stakeholder event and the open session are available below (materials will continue to be added on a regular basis). Stakeholder presentations do not necessarily reflect the views of the GFSEC or its members.


New sources of steel demand

Significant changes in consumer preferences and rapid technological advances are changing the business environment for the steel industry in a major way. An already cyclical industry now needs to adapt to structural changes in steel demand, as society calls on the industry to produce different and better types of steel products to meet its needs.

To learn more:


Steel market developments in ASEAN economies and future prospects: growth, risks and way forward

Southeast Asian economies have become increasingly important for the global steel industry. Steel demand in the six major economies of the Association of Southeast Asian Nations (the so-called ASEAN-6, i.e. Indonesia, Malaysia, Singapore, Thailand, Philippines, and Vietnam) amounted to 91 million tonnes in 2018, up by 22% in a matter of five years. Today, steel demand in the ASEAN-6 exceeds that of Africa, the CIS, the Middle East, and South America.

To learn more:

Other exchanges between industry and the GFSEC

Steel industry representatives have regularly participated in GFSEC meetings where they share their experiences with steel industry restructuring and adjustment, exchange views on the market situation in their respective economies and the future outlook for the steel sector, and outline key lessons to prevent the re-emergence of excess capacity in the future. Some of their contributions are available below. Additional materials will be added as they become available. Stakeholder presentations do not necessarily reflect the views of the GFSEC or its members. 

American Iron and Steel Institute


Eurofer

 
Japan Iron and Steel Federation


Turkish Steel Producers Association

 


worldsteel

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Steel industry associations

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What stakeholders are saying

16 Steel Industry Groups Welcome Agreement to Continue International Work to Reduce Global Steel Overcapacity
November 2019

"Governments of steelmaking economies worldwide must redouble their efforts to address this persistent global excess capacity in the steel sector, eliminating the support measures that cause it, and implementing strong rules and remedies that reduce excess capacity. We call on governments to continue the work on the issue of steel excess capacity without delay.

"We appreciate the leadership of the Government of Japan in the past year to make meaningful progress in the Forum, and its conclusions as Chair. Recognizing the severe impacts that global steel overcapacity and market distorting policies in the steel sector around the world are continuing to have on our industry, we have urged the continuation of the work of the Forum to ensure its recommendations are turned into action. We are pleased that it is the will of a large majority of members to pursue meaningful efforts on the issue of steel excess capacity on the same basis as the work of the Forum over the past three years."

Statement by 19 steel associations
October 2019

"We are grateful for the efforts made to date by the G20 and OECD governments to address excess capacity, and to support a level playing field at the G20 Global Forum on Steel Excess Capacity and OECD Steel Committee.

"Unfortunately, effective reductions in capacity and concrete actions to remove government measures that distort markets, including raw materials markets, have not been adequate to date. Efforts by governments to eliminate practices that lead to excess capacity should be redoubled.

"We are hopeful that the diligent efforts of Japan, the current G20 Chair, are successful in extending the G20 Global Forum on Steel Excess Capacity beyond 2019, and we urge all G20 and OECD steelmaking economies to pursue all vigorous means to obtain substantive results on the critical problem of steel excess capacity."

The European Steel Association (EUROFER)
March 2019

“Continued international work on excess capacity and related government support measures would contribute to the sustainability of our global industry...”

“GFSEC’s work has already produced results, such as detailed statistics on steel capacity and production around the world and has instigated work to cut excess capacity where it is needed most...”

“In a world where global overcapacity is still very much present – and with proliferating trade distortions – there is a greater need than ever for the GFSEC.”

Kosei Shindo
Worldsteel Chairman, 2017-2018

“Under the initiative of this forum chaired by Germany and Argentina and with the accumulated efforts of each country, the transparency of the steel supply-demand environment has improved in the past two years following the establishment of the Global Forum. The multilateral approach by the Global Forum to exchange information on crude steel capacity developments and government policies affecting excess capacity, including market-distorting subsidies and other government support measures, have been effective to date. I highly appreciate that the Ministerial meetings held in September 2018 agreed to them.”