Gareth Stace, director of UK Steel, said: “Chinese government policies have contributed to significant global excess capacity in steel, unfair trade and distortions in steel trade flows around the world.
“If the G7 leaders fail to address or halt market distortions it will mean subsidised and state-supported enterprises surviving at the expense of efficient companies operating in environments with minimal government support.
“That’s why we are urging leaders at the summit in Japan to discuss the need to maintain effective remedial measures, consistent with their World Trade Organisation rights and obligations, against exports from countries in which market economy conditions do not prevail.”
UK Steel and seven other steel bodies said: “Steel producers in the G7 nations, and elsewhere around the world, highly appreciate intergovernmental attempts so far to cope with the global overcapacity issue, and urge their governments to take urgent action to address this global problem, building upon the work program outlined by high-level government representatives in Brussels in mid-April to address the overcapacity and adjustment challenges facing the steel industry.”
However, they warned: “It is critical that all major steel-producing nations participate in efforts to eliminate trade-distorting policies that are contributing to the current steel crisis."
The trade associations are UK Steel, the Steel Manufacturers Association, the American Iron and Steel Institute, the Japan Iron and Steel Federation, Eurofer (the European Steel Association), Canadian Steel Producers Association, the Committee on Pipe and Tube Imports, and the Specialty Steel Industry of North America.
