The European Steelmaker’s Association (Eurofer) has supported the reactivation of the Global Forum on Steel Excess Capacity (GFSEC), calling the latter’s work vital to mapping global steel overcapacity.
The GFSEC is a framework that studies pre-conditions to implement capacity reductions world-wide.
According to a press statement by Eurofer, the European steel industry reduced its production capacity in the past 10 years by over 22mn mt while other regions focused on new installations such as unrequired export-based capacity. The association, therefore, approached GFSEC with a request to continue its mandate as the expiration date neared, joining a similar call made by several other nations.
On July 7, at the Global Forum’s stakeholder conference representatives of the global steel industry apprised the audience about the severe impact of COVID-19 on the steel industry. Many economically developed and developing countries have been experiencing major demand downtrends between 10pc-11pc they said during the conference.
The pandemic has caused a 6pc drop in steel demand globally, leading to economic crisis worldwide.
According to the Eurofer release European markets experienced a sudden drop in demand which has damaged EU steel production, by 28pc since mid-March.