The global steel industry has called on governments to take action against China’s new steel policy, Steel Adjustment Policy, as well as overcapacity, announced nonprofit steel organisation Latin American Steel Association (Alacero) in June.

The association said there was a strong opposition to the rising tide of exports from State-owned, supported or controlled steel industries, such as that of China, which was demonstrated at the meeting of the Organisation for Economic Cooperation and Development’s (OECD’s) steel committee in May, in Paris, France.

At the meeting, the reports shared by national steel industry associations from Asia, the Americas and Europe revealed a similar pattern – slowed growth in their respective steel industries, with all regions suffering from a dramatic increase in unfair steel imports fuelled by massive global overcapacity.

Alacero says China is the primary country responsible for the world’s steel oversupply, with massive and increasing overcapacity of steel in a period of slowing growth. The association says China has destabilised the global steel market and trade flows.

Joint comments about China’s steel policy submitted by eight steel trade associations, representing the US, Canada, Mexico, Latin America and Europe, expressed concern about the country's policy, as it continues to reflect a “top-down, State-dominated approach to reforming the steel industry”.

The OECD steel committee took note of the urgency of these concerns, as reflected in the closing statement issued by chairperson Risaburo Nezu, which stated that structural challenges must be addressed urgently in view of the new period of low steel demand growth and rising exports.

The statement adds that failure to address or stop market distortions will result in subsidised and State-supported enterprises surviving at the expense of private and efficient companies operating in environments with minimal government support.