Global steel forum sets 2026 framework deadline as US ups pressure on excess capacity

The ministers set a deadline to agree on key elements by June 2026. They also agreed to more closely track non‑market practices and circumvention as well as financing that fuels new capacity.

The forum projects that excess steel capacity will jump from 601 million metric tons (mt) in 2024 to 721 million mt by 2027. That’s the highest level in a decade. It’s also well above the combined output of GFSEC participants and poses a growing threat to North American producers.

The forum flagged rising indirect steel trade and circumvention. It encouraged members to share “melt and pour” data. And it suggested they align with North American calls for better, better enforcement, and movement toward market-based supply chains.

US groups push for swift action

US steel associations backed work on a comprehensive framework and stronger monitoring. They also endorsed a tougher line on trade and urged swift follow‑through.

“Addressing the massive global excess capacity in steel … is one of the most critical issues facing the American steel industry today,” said Kevin Dempsey, president and CEO of the American Iron and Steel Institute (AISI).

“Existing international trade rules have proved inadequate to discipline the policies and practices that have caused the global steel crisis,” he added.

Philip K. Bell, president of the Steel Manufacturers Association (SMA), agreed. Government-driven overcapacity in China’s steel industry poses a threat to American industry, he said.

SMA pressed for immediate action and enforcement. The group warned of more layoffs and plant closures worldwide if other countries don’t take more decisive steps to rein in excess capacity.

“It’s time for action, not talk,” Bell said. “A strong global framework to stop unfair overproduction and hold bad actors accountable is essential.”

SMA and AISI are lobbying groups that represent domestic steel interests.