GENERAL NEWS
Steel excess capacity hits global markets
Global steel excess capacity continues to grow, driven by increasing subsidies in some major non-OECD steel-producing economies, while efforts to restore fair competition are increasingly undermined by circumvention of trade measures aimed at levelling the playing field, according to a new OECD( Organisation for Economic Co-operation and Development) report. Working with over 100 countries, the OECD is a global policy forum.
The‘ OECD Steel Outlook 2026’ projects global steel excess capacity to reach 745- million tonnes by 2028, exceeding the OECD’ s current steel production by 319 million tonnes. Planned capacity additions of up to 139- million tonnes through 2028 represent a 5.7 % increase from 2025 levels, while demand growth is expected to remain subdued at around 0.9 % per year.
“ Most new capacity is being added outside the OECD, often with government support. In 2024, the median Chinese steel firm received 15 times more in subsidies, relative to their total assets, than producers elsewhere, up from ten times in 2023. Chinese steelmakers exported a record 131 million tonnes in 2025, a 153 % increase from 2020 and more than the European Union’ s total steel production in 2025,” commented the OECD.
“ Excess steel capacity creates problems for everyone. It distorts global markets and hurts economic security and resilience. It also discourages innovation and sustainability,” OECD Secretary-General, Mathias Cormann, said.“ We need to tackle the root causes, including harmful subsidies and other non-market practices. That means stronger international cooperation. A level playing field for steel producers everywhere.”
The Outlook identifies trade patterns that indicate growing circumvention of trade measures, such as anti-dumping and countervailing duties on certain Chinese steel products. Exports of products like hot-rolled plates and hot-rolled wide coils from China to Southeast Asian countries have increased sharply, alongside increased exports of the same products from Southeast Asia to OECD markets.
Image: Shutterstock. com.
“ The report also highlights a 300 % increase in China’ s exports of semi-finished steel to Southeast Asia in 2025. This suggests that such products may be processed in third countries before being re-exported to OECD markets, potentially bypassing current trade measures,” commented the OECD.
The report also outlines growing pressures on raw material supplies. No steel-producing country is fully self-sufficient in the inputs required by its steel industry, and export restrictions on key raw materials for steelmaking are expanding worldwide, with 42 countries now restricting scrap exports. Rising energy costs linked to the conflict in the Middle East are adding further strain, as energy can account for up to 40 % of steel production costs. These pressures are weighing on investment decisions across the industry, with several lower-emissions steelmaking projects now postponed.
The OECD Steel Committee and the Global Forum on Steel Excess Capacity are developing a comprehensive framework for joint action on steel, working with 28 major steel-producing economies. n
www
. oecd. org
AI, robotics, automation and energy
A total of 110,000 international visitors took part in Hannover Messe( Hanover, Germany), a leading trade fair for the manufacturing industry, from 20-24 April 2026. Around 40 per cent of visitors were from outside Germany. The countries contributing the most visitors were China; Brazil; the United States; Japan and South Korea. The‘ Partner Country’ this year was Brazil.
“ HANNOVER MESSE this year clearly demonstrated that artificial intelligence, robotics, automation and energy infrastructure are at the heart of the industrial future and are key technologies for transforming industry. Products and solutions that companies presented include AI-supported production systems and tools that can automate processes and predict failures; humanoid robots that have already mastered complex motion sequences and will work in production and service in the future; and new solutions for energy efficiency and grid expansion that pave the way to a carbon-neutral industry,” said show organiser, Deutsche Messe.
German Chancellor, Friedrich Merz; Brazilian President, Lula da Silva; Roland
Image: Deutsche Messe.
Busch( Siemens); Christian Klein( SAP); German Minister of Economics, Katherina Reiche; and Boris Pistorius, Germany’ s Minister of Defence, were at the show. International politicians from Canada’ s Minister of Industry, Mélanie Joly, to Stéphane Séjourné from the European Commission also visited the event.
“ Leading representatives of industry made it clear that Europe is under pressure as a location for doing business. Inflated costs, excessive regulation and geopolitical upheaval are leading to growing uncertainty and are noticeably impacting companies’ competitiveness. Companies are investing in future technologies, driving innovation and opening new markets. Exhibitors reported intensive discussions, specific projects and great international interest,” continued Deutsche Messe.
HANNOVER MESSE 2026 featured an enhanced trade show concept and a new hall plan, new networking formats and masterclasses for exhibitors.
“ HANNOVER MESSE sent an unmistakable signal in terms of content: we urgently need rapid deregulation so that we can assert ourselves as a location amid international competition, especially in the field of industrial AI. Companies have impressively demonstrated the potential of the technology. Now Berlin and Brussels need to eliminate barriers to progress,” said Dr. Gunther Kegel, President of ZVEI( Association of the German Electrical and Digital Industry) and Chairman of the HANNOVER MESSE Exhibitor Advisory Board.
Hannover Messe 2027 will take place from 5-8 April 2027. Spain will be the‘ Partner Country’. n
www. hannovermesse. de / en /
6 | ismr. net | ISMR June 2026