OECD: Ongoing war of aggression by Russia risks further downturn in global steel markets
by David Fleschen
At its 93rd session held on 13-14 March 2023, the OECD Steel Committee expressed its deep concern about Russia’s aggression against Ukraine and its impact on global steel markets, contributing to a continued stagnation in world steel trade, disruptions in raw material markets, and increased market uncertainty. Delegates agreed that the Committee stands ready to support Ukraine – a long-standing member of the Committee – in the reconstruction and decarbonisation of its steel industry. The consequences of the war are reverberating internationally through the steel supply chain, and have led to an increasing number of export restrictions on steelmaking raw materials such as scrap.
These developments are compounding the already poor steel market conditions being caused by a plethora of concurrent factors including increased cost pressures on steel producers and ever-growing excess steelmaking capacity. Responding to these challenges, the Committee launched a Global Steel Supply Chain Observatory, aimed at assisting members and industries with real-time monitoring of raw material markets and related policy measures, providing a platform for finding solutions and reducing risks and vulnerabilities. The Committee also discussed its role and ambitious work programme on steel decarbonisation, and how its mandate of ensuring a level playing field and open markets can support this fundamental industry transformation that is occurring via different instruments and at various speeds worldwide.
Source and Photo: OECD