Steelmaking Nations Address Overcapacity

Government delegates from steelmaking nations agreed at a Paris conference to consult with producers on reducing overcapacity and to reconvene in December.

Overcapacity is dogging the world market for steel, government and industry representatives agreed in a statement at the end of the conference sponsored by the Organization for Economic Cooperation and Development.

The world produced 10% more steel than it consumed in 2000, according to the Brussels-based International Iron and Steel Institute, a research group funded by steel companies from 39 countries.

Benchmark steel prices have dropped by more than a third in the last year because demand fell with slowing economies.

The U.S., which has 20 steelmakers in bankruptcy protection, has called for an international agreement to cut excess capacity and may impose tariffs or quotas on imported steel if a government investigation finds the domestic industry has been hurt by steel from abroad.