Global overcapacity challenges remain in steel and other industries

A recent report by the OECD warned that overcapacity outside China is affecting the recovery of the global steel industry. International observers believe that overcapacity in steel and other industries is a global issue. In the past two years, China reduced its production capacity and helped the world's steel and other industries recover from the downturn caused by overcapacity. In the future, all countries should continue to strengthen communication and cooperation so that they can collectively cope with the challenge of overcapacity .

According to a report released by the OECD Steel Council, the global steelmaking capacity in the first half of 2017 was 2.36 billion tons, down slightly by 0.6% from 2.37 billion tons in the same period of 2016. Among them, the Middle East, South America, in addition to the European Union and other European countries and other regions of steel production increased significantly. The steel council chairman Lisen Toptone admitted: "Excess capacity is alarmingly high."

The report predicts that from 2017 to 2019, the global steel production capacity will be nearly 40 million tons, of which the Middle East will add about 23 million tons.

Alistair Ramsay, head of metals market research firm in the United States, said any increase in steel production in any region could pose a clear risk to future steel pricing and profits.