 The global steel industry is poised for significant expansion, with the Organization for Economic Cooperation and Development (OECD) projecting a 6.7 per cent increase in steel production capacity between 2025 and 2027, amounting to an additional 165 million metric tons. This growth is predominantly driven by Asian economies, particularly China and India, which are expected to contribute nearly 60 per cent of the new capacity.Â
Despite this substantial capacity expansion, the OECD forecasts only a modest annual growth in global steel demand of 0.7 per cent through 2030. This disparity raises concerns about potential overcapacity, with projections indicating that excess steel capacity could reach 721 million metric tons by 2027. Such an imbalance threatens market stability, employment, and the viability of even highly competitive steel producers. The OECD emphasizes the need for urgent international cooperation to address the challenges posed by this impending overcapacity. Recommendations include implementing structural reforms to eliminate market-distorting subsidies, enhancing transparency in government support measures, and fostering effective international coordination to ensure a level playing field in the global steel market.
