North American Steel Producers Applaud Governments' Call for Effective and Immediate Commitments to Address Global Steel Excess Capacity


Contact: Lisa Harrison (AISI)     202-452-7115     lharrison@steel.org

April 13, 2016

Steel groups in Canada, Mexico and the United States today expressed strong support for the statement issued this week by NAFTA-country governments calling for “strong and immediate commitments by governments of all major steel-producing countries to address the problem of global excess capacity.”

Representatives of the American Iron and Steel Institute (AISI), the Steel Manufacturers Association (SMA), the Canadian Steel Producers Association (CSPA), CANACERO (the Mexican steel association), the Committee on Pipe and Tube Imports (CPTI) and the Specialty Steel Industry of North America (SSINA) applauded the governments’ action as a key outcome of the North American Steel Trade Committee meeting last week in Mexico City, where the groups and governments discussed the steel overcapacity situation.

The groups said that the global steel industry continues to experience significant levels of overcapacity, estimated by the Organization for Economic Cooperation and Development (OECD) at 700 million metric tons, representing almost one-third of world steel capacity. This overcapacity, which is a result of foreign governments’ support of their steel industries, has distorted the global market and resulted in high levels of steel imports into the NAFTA region.

“One of the most serious consequences from the glut of global steelmaking capacity has been very high levels of offshore imports into North America in recent years. As demand has softened in other parts of the world, particularly in China, our region remains one of the only regions where the steel trade balance is negative and the deficit is increasing. Action must be taken to address the injury being caused by these imports, many of which are dumped and/or subsidized,” the groups stated.

They noted that last year, non-NAFTA finished imports captured 22 percent of the North American market, up from 21 percent in 2014, while raw steel production in the region declined by 9.3 percent. Imports are capturing market share and costing thousands of jobs throughout the steelmaking supply chain in the United States, Canada and Mexico.

The OECD will conduct a High-Level Symposium on Excess Capacity and Structural Adjustment in the Steel Sector, which will take place in Brussels on April 18. This meeting presents a critical opportunity to continue to address the global steel overcapacity crisis.

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CONTACTS:
AISI – Lisa Harrison, lharrison@steel.org
SMA – Phil Bell, bell@steelnet.org
CSPA – Joe Galimberti, j.galimberti@canadiansteel.ca
CPTI - Tamara Browne, tbrowne@schagrinassociates.com
Canacero - Salvador Quesada, squesada@canacero.mx
SSINA – Skip Harquist, DHartquist@KelleyDrye.com

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