These capacity imbalances translate into an intent, through the use of aggressively priced exports, to dominate and potentially take over our market.
Global excess capacity is one of the biggest challenges facing stainless steel producers, with much of that capacity artificially sustained by market-distorting policies and practices. And the problem is growing. According to the International Stainless Steel Forum (ISSF), China’s stainless steel melting capacity grew from 3 million metric tons in 2005 to more than 30 million metric tons in 2019 – far in excess of their internal consumption. These capacity imbalances translate into an intent, through the use of aggressively priced exports, to dominate and potentially take over our market.
SSINA strongly supports the administration’s efforts – unilaterally and bilaterally – to address policies that contribute to excess steel capacity and production, including subsidies, border measures on steel and steelmaking raw materials, and other trade-distorting practices. At the multilateral level, we appreciate the leadership of the U.S. government as part of the Global Forum on Steel Excess Capacity. The Forum, which includes representatives of G20 and OECD nations, was established in 2016 to work toward a “collective response” to the problem of global steel overcapacity. SSINA strongly encourages the continuation of the Forum, including the development and implementation of policies to address the root causes driving the massive build-up in steel capacity. We cannot meaningfully nor sustainably reduce illegally-traded imports without addressing structural global excess capacity.