JISF Welcomes the Agreement at the Ministerial Meeting of the Global Forum on Steel Excess Capacity

Ｄｅｃ1,2017
Kosei Shindo
Chairman
    The Japan Iron and Steel Federation

The Japan Iron and Steel Federation (JISF) welcomes the agreement on six guiding principles for concrete policy solutions to address the issue of global excess capacity in the steel sector at the Ministerial Meeting of the Global Forum on Steel Excess Capacity, held on 30 November 2017 in Berlin. The principles provide a basis for specific actions for the elimination of government support measures that distort steel markets and for ensuring a level playing field among steel enterprises of all types of ownership.

The causes of excess capacity problem are additional steel plants that do not reflect market principles and government support measures that distort steel markets. Steel excess capacity has been lowering prices, increasing protectionism and creating other problems worldwide. These issues are having a significant impact on the steel industry as well as on several downstream industries.

Under the leadership of the Japanese government, participants at the May 2016 G7 Ise-Shima Summit in Japan recognized that excess capacity in the steel sector is a global problem. The Leaders’ Communique at the subsequent G20 Hangzhou Summit in China included a call for the formation of a Global Forum on excess capacity in the steel sector.

The agreement at the Ministerial Meeting covers 33 countries and regions. This includes China, the United States and Russia, which are major steel producing countries, as well as India and Indonesia, where steel production is expected to increase. JISF is grateful and appreciative of the leadership and commitment of the Japanese government on the agreement at the Ministerial Meeting.

The Japanese steel industry believes that steady progress with implementing the six guiding principles and the concrete policy solutions will be vital to resolving the issue of global excess capacity in the steel sector. The Japanese steel industry strongly hopes that the Japanese government will conduct effective reviews and other activities concerning measures to end this problem.

JISF will continue to cooperate in every way possible to resolve steel excess capacity issues while remaining in step with the policies and goals of the Japanese government..