Global Steel Forum

by Hans Diederichs

Structural problems in the global steel industry urgently need to be addressed

On the occasion of the meeting of the Global Steel Forum on 7 and 8 July, the German Steel Federation (WV Stahl) warns of considerable risks in international steel foreign trade. "In the wake of the Corona crisis, the distortions in the global steel industry have further intensified. The structural problems must be urgently addressed by the Global Steel Forum. There cannot and must not be a 'business as usual'", explains Hans Jürgen Kerkhoff, President of WV Stahl.

Estimates of the Organization for Economic Cooperation and Development (OECD) indicate that global overcapacities in the steel sector will increase considerably this year and in 2021 as a result of the corona crisis. One of the reasons for this is the severe worldwide slump in demand. In addition, the response to the crisis varies greatly from region to region. In China in particular, for example, production was expanded despite the weak economy and steel capacities were expanded again.

"The G20 Global Steel Forum is more important than ever in the current crisis. At the upcoming G20 meeting in Saudi Arabia, the structural problems in the global steel industry urgently need to be addressed. At the same time, efforts must be intensified to reintegrate China into the work of the Global Forum", Kerkhoff continued. China had left the Global Forum on Steel Excess Capacity last year but is responsible for more than 50 percent of global steel production.

Source: WV Stahl                                     Photo: Fotolia

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