Excess steelmaking capacity represents an existential threat to steelmakers in the United States and around the world.
Overcapacity is expected to reach a record 745 million tons by 2028. To put that in perspective: steelmakers in the United States, the world’s No. 3 steelmaking nation, made 81.5 million tons last year.
But a Ministerial Statement and a Comprehensive Framework for Joint Action (the “Milwaukee Framework”) adopted today by the G20 Ministerial Meeting of the Global Forum on Excess Steel Capacity (GFSEC) in Milwaukee are a step in the right direction. They identify concrete actions that national governments can take to address the impact and root causes of global steel excess capacity.
SMA President and CEO Philip K. Bell, CAE, representing American steelmakers at the Milwaukee meeting, shared the U.S. perspective on global steel trade with trade policy officials from around the world.
“United States steel trade policy, anchored by Section 232 tariffs, has fundamentally transformed the American steel industry,” Bell said. “The Trump administration created the stable, predictable market environment that domestic producers need to invest, expand, and compete.”
Bell went on to say, ” The results are undeniable. American steel production is surging, imports of unfairly traded steel have collapsed, and more than $40 billion in private capital is being deployed across greenfield mills, brownfield modernizations, process optimization and strategically rationalized capacity to build the most modern, competitive steel industry in U.S. history.”
“SMA supports the work of Ambassador Greer, the Office of the United States Trade Representative and the OECD on the creation of a comprehensive framework to address steel excess capacity. This is a major milestone coming on the 10th anniversary of the forum and a testament to America’s diplomatic and market leadership to address global excess steel capacity.”
