World governments agree there's too much steel capacity: 700 million tons

“We are encouraged by the support of many governments who, through this statement, recognize the severe impacts that global steel overcapacity and market-distorting government subsidies and other interventionist policies are causing,” American Iron and Steel Institute President and CEO Thomas Gibson said.

In the United States, more than 13,000 steel industry workers have lost their jobs in the last year, and steel producers continue to suffer from high levels of unfairly traded imports, Gibson said.

Representatives of the eight countries said excess capacity must be eliminated along with the government subsidies that encourage plants that don’t need to be built or that are run at a loss.

Gibson chastised China, which produced a record 70 million tons of steel in March, for failing to cooperate.

“To succeed in cutting the glut of imports caused by overcapacity, we also need China’s constructive participation,” Gibson said.

Other countries are imitating the Chinese model, perpetuating the overcapacity problem, he said.

Gibson did say it was still a positive development to see an agreement to develop a better system of monitoring steel capacity and developing longer-term forecasts for steel demand.

“While we were disappointed and frustrated with China’s unwillingness to move forward and take action during the global steel discussions this week, we are pleased that many other of the world’s steelmaking countries have agreed to move forward with plans to work together to eliminate market-distorting government subsidies and other policies adversely impacting the global steel industry,” Gibson said.