On the 26th, the third ministerial meeting of the Global Forum on Overcapacity of Steel was held in Tokyo, Japan. Li Chenggang, Assistant Minister of the Ministry of Commerce of China, was invited to attend the meeting.
The Chinese side said that China’s steel has the largest capacity and the most outstanding contribution. China participates in the forum with sincerity and cooperation. It is the only member of the forum to set the goal of de-capacity and take the initiative to take practical measures to increase production capacity. Since 2016, China has reduced its steel production capacity by more than 150 million tons. To this end, China has only placed 280,000 steel workers, exceeding the total number of steel jobs in the United States, Europe and Japan. At present, the situation of China’s steel market has improved significantly, and the utilization rate of crude steel capacity has returned to a reasonable range of more than 80%, which has made great contributions to the healthy development of the global steel industry.
The Chinese side emphasized that China’s steel production mainly meets the needs of the domestic market. Although China’s steel production capacity and production account for half of the world’s total, China’s steel consumption is also close to half of the world’s. Currently, 93% of production is used to meet the needs of the domestic market. Steel exports account for only 7% of production, without impacting the international market. Overcapacity is a common challenge facing the world. The root cause of overcapacity in this round of steel is the global economic recession and the decline in steel demand caused by the 2008 international financial crisis. Overcapacity is a universal, cyclical, and structural problem in economic development. All parties should objectively, historically and fairly view the global steel overcapacity problem in the context of the financial crisis, and should follow the principle of “global challenges, collective response” and jointly take measures to deal with them.
The Chinese government’s measures to support the development of the steel industry are in line with WTO rules, without distorting the market, and without causing overcapacity. Judging from the policy measures shared by the members of the forum, these support measures of the Chinese side have also been taken or are being taken by many members.
The Chinese side believes that there are sufficient reasons and reasons for the end of the forum. The forum’s job responsibilities document stipulates that the forum has a term of three years and can be extended on the basis of consensus among all members. The G20 Osaka Summit did not authorize the forum to be postponed, nor did the ministerial meeting reach a consensus on the extension of the forum. Therefore, the expiration of the forum naturally ends.
China regrets that the forum failed to reach a consensus on the ministerial report. Despite this, China is willing to conduct exchanges and cooperation with relevant parties in an open manner. After the forum is over, the steel industry issues can be discussed through the industry’s existing channels.
Post time: Oct-28-2019