The Global Forum on Steel Excess Capacity (GFSEC) has warned that global excess steel capacity will increase from 601 million tons in 2024 to 721 million tons by 2027 — the highest level in a decade.
GFSEC members have committed for the first time to tackling the root causes of overcapacity through a joint framework program, to be developed by June 2026.
In H1 2025, excess capacity grew 5.6% y-o-y, driven mainly by China, Iran, and Egypt. Global steel exports rose 3% y-o-y, with Chinese exports lifting import penetration among non-GFSEC partners from 28.1% to 31%.
GFSEC actions will include:
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Stronger monitoring of non-market policies.
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Greater transparency and knowledge-sharing.
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Outreach to non-member producers to encourage cooperation.
China has also announced measures to ban new steelmaking capacity and curb output, while shifting toward high-quality steel production.
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