OECD Steel Committee: Global overcapacity hits record levels as China’s exports surge
At the 98th session of the OECD Steel Committee, held in Paris on 4-5 November 2025, a total of 249 government and industry representatives from 43 delegations gathered to discuss the structural challenges of the global steel market and potential policy responses. The meeting warned that rising overcapacity and non-market practices are once again destabilizing international trade.
In a joint statement, Committee Vice-Chairs Sheryl Groeneweg and Lieven Top noted that China’s steel exports have increased by 10% this year, reaching record levels. They emphasized that this surge has negatively affected producers and workers in market-based economies, weakening the financial performance of companies. The statement also revealed that around one-fifth of planned low-carbon steel projects worldwide have been suspended due to unfavorable market conditions and unfair competition.
According to OECD data, global steel overcapacity could exceed 680 million tons in 2025. Global crude steel production capacity has been rising for seven consecutive years and is expected to reach 2.547 billion tons by the end of the year. With additional projects scheduled to come online by 2028, the figure could climb to 2.656 billion tons. Most capacity expansions are concentrated in Asia and the Middle East, particularly in India and ASEAN countries.
Delegates highlighted that non-market measures—including energy subsidies, tax exemptions, low-interest loans, and preferential treatment for state-owned enterprises—are distorting competition and allowing inefficient plants to remain operational. The OECD’s monitoring report identified China, the Middle East–North Africa (MENA) region, and Southeast Asia as the areas where such practices are most prevalent. The Committee stated that these policies “distort market signals and discourage private investment.”
Trade distortions linked to overcapacity persist despite existing safeguard measures, the report noted. Chinese producers have reportedly increased exports of semi-finished and low value-added steel products to circumvent trade restrictions on finished goods, leaving Asian, African, and Latin American markets increasingly exposed.
Participants agreed on the need for more coordinated global action under the Global Forum on Steel Excess Capacity (GFSEC) framework. Referring to the resolutions adopted at the October GFSEC Ministerial Meeting, the Committee reaffirmed the goal of establishing a joint policy framework by June 2026 to address the structural roots of the global steel crisis. It also stressed that reducing excess capacity would not only restore market stability but also accelerate investments in low-carbon steel technologies.
Steel Derivatives issue highlighted at FFDM’s 18th convention in Paris
EUROMETAL had the pleasure of participating in the 18th Convention of the FFDM (Fédération française de la distribution et de la transformation des métaux), held on Thursday, 25 September 2025, in Paris at the Tour MGEN Auditorium.
Under the theme “Tempête géopolitique : garder le cap” (“Geopolitical storm: staying on course”), the convention brought together over 200 participants from across the French metals value chain, including distributors, processors, industry leaders, economists, and policymakers.
During the official keynote address, FFDM President Laurent Noirclerc gave special attention to EUROMETAL’s recent initiative to identify steel derivative products flooding the European market — often bypassing safeguard measures, undermining ecological objectives, and ultimately threatening the integrity of the EU distribution chain. His endorsement reinforces the growing recognition that derivative imports are a critical blind spot in current EU trade and environmental regulations.
The day featured a series of high-level presentations, including insights from:
- Sylvie Bermann, former French Ambassador to China, the UK, and Russia, on the shifting global order.
- Arnaud Montebourg, former French Minister of Economy, on reindustrialisation and “Made in France” strategy.
- Philippe Dessertine, economist, on new paths to growth amid uncertainty.
- Experts from the French Building Federation (FFB) and Allianz Trade provided outlooks on construction and global risk.
The event concluded with a networking cruise along the Seine aboard the Paquebot des Yachts de Paris, fostering further exchange between participants.
