The European steelmakers’ association Eurofer has called openly for the mandate of the Global Forum on Steel Excess Capacity (GFSEC) to be extended beyond November, when it is due to expire.
The GFSEC is meeting this week and Eurofer believes the organisation has begun an important process, but its work is not yet completed.
“We call on members of the Global Forum to agree on a continuation of the forum’s mandate beyond November 2019,” says Eurofer director general Axel Eggert in a statement sent to Kallanish. “Continued international work on excess capacity and related government support measures would contribute to the sustainability of our global industry.”
Since its creation in 2016 supported by the leaders of G20, the GFSEC has produced important results such as detailed statistics on global steel capacity and production. It has also initiated a process to cut excess capacity where needed, Eurofer says.
“Global steel overcapacity is still at least 550 million tonnes, according to the OECD,” Eggert emphasises. “We are still very much at the beginning of the process, and there is clearly a need for the GFSEC’s mandate to be extended.”
“Not renewing the mandate of the Global Forum would mean abandoning the global steel industry when it is still at a perilous juncture. Effective multilateral cooperation is needed in order to preserve fair and free trade in this essential sector,” he concludes.
