OECD panel flags excess steel supplies; China exports surge

New Delhi: The steel panel at the Organisation for Economic Co-operation and Development (OECD) has flagged excess supplies of the primary infrastructure alloy as Chinese producers continue to flood the global markets, with excess worldwide capacity likely to surpass 680 million tonnes.

"Concerns are intensifying amid a continued surge in Chinese steel exports, which have increased by a further 10% this year, reaching new record levels after doubling between 2020-2024," the committee said in a statement.

Chinese steel manufacturers have intensified their exports as domestic demand for steel declines, leading to depressed financial conditions for steel producers globally.


"The structural decline in Chinese steel demand is pushing its domestic steel producers to export record volumes of steel rather than undertake market-oriented reforms and remove such capacity, thereby reshaping international trade flows," according to the committee's statement.

In August, the Directorate General of Trade Remedies (DGTR) under the Commerce Ministry, India, recommended a final imposition of safeguard duty on certain flat steel imports, with the trade body suggesting a staggered rate of 12%, 11.5% and 11% for the next three years.

However, the steel industry has raised concerns about the quantum of safeguard duty being inadequate to check imports. The steel players have sought a safeguard duty of 25% to restrict imports from China effectively.