OECD committee urges subsidy halt

Jul 03, 2013 | 01:31 PM | Keith Nuthall

Tags  OECD, steel, overcapacity, China capacity, Risaburo Nezu, steel committee, Keith Nuthall

PARIS — The chairman of the influential steel committee of the Organization for Economic Cooperation and Development (OECD) has told steelmaking countries to ease off subsidizing the sector to fight overcapacity.

"Excess capacity is one of the biggest challenges facing the steel industry today," Risaburo Nezu said in a statement released after a two-day meeting of the committee in Paris that wrapped up July 2. "Open markets for steel are crucial for the health of the industry."

A "high level of excess capacity is a major cause of the industry’s weak financial performance and is threatening the viability of many firms," Nezu said, citing statistics underlining a moderate revival for the sector, based mainly on rebounding demand in China. "With investment projects continuing to increase in a number of economies, while steel consumption growth is anticipated to remain moderate, the global imbalance will continue to pose risks for the industry for the foreseeable future."....

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