Global forum established to tackle excess steel production

The Group of 20 and other steel producing countries established the Global Forum on Steel Excess Capacity in an effort to share information and “take effective steps to deal with the root causes of excess capacity,” U.S. Commerce Secretary Pritzker said.    The Group of 20 nations and other steel producing countries have established the Global Forum on Steel Excess Capacity.
   “We encourage the global forum members to move quickly to exchange information and take effective steps to deal with the root causes of excess capacity, including market distorting support measures,” said U.S. Commerce Secretary Penny Pritzker and U.S. Trade Representative Michael Froman in a joint statement.
   “Working with the G20 and interested members of the Organization for Economic Cooperation and Development (OECD), we look forward to upcoming meetings in February to find meaningful and timely solutions that are required to restore healthy market function in the global steel sector,” the officials added.
   A U.S. government delegation led by Paul Piquado, Commerce Department’s assistant secretary for enforcement and compliance, as well as representatives from the Office of the U.S. Trade Representative and State Department, met in Berlin on Dec. 17 with the G20 and OECD. Collectively, they represent more than 30 steel producing countries or 90 percent of worldwide steel production. The forum members selected Germany as chair and China and the United States were appointed as co-chairs.
   “The U.S. steel industry is in a crisis driven in large part by global excess capacity. This global excess capacity has more than doubled from year 2000 to 2014, and continues to expand. The impact of the current crisis on U.S. industry includes price declines, steel plant closures, and over 15,000 jobs lost,” Commerce and USTR said.