5 Sep 2016

Excess steel production in G20 leaders' sights

9:13 pm on 5 September 2016

The G20 country leaders meeting in China say they are likely to recommend the establishment of a global forum to help cut excess steel production.

no caption

Steel producers in New Zealand and Australia have accused China of producing too much steel and dumping it on the global market. Photo: 123rf.com

Chinese steel companies have recently been accused of dumping steel products in markets including New Zealand, as productions outstrips demand in the global steel market.

Leaders of the world's largest 20 economies are wrapping up their two-day summit in Hangzhou later today.

A draft statement recommends a global forum to tackle excess steel production.

European countries have in recent months put pressure on China, accusing it of producing too much steel in state companies and dumping it on the global market.

The impact has also been felt on steel producers in Australia.

Prime Minister Malcolm Turnbull said Chinese leaders had assured him they were working to reform the state sector and cut back on excess capacity.

Concern about 'massive oversupply' of Chinese steel in NZ

In New Zealand, Pacific Steel - which is understood to have laid an anti-dumping complaint against China - wants the government to take a stronger stance on the "massive over-supply" of steel from China.

The government has been embroiled in a controversy over its response to apparent threats of trade retaliation from China if such complaints were investigated.

Last month, Pacific Steel general manager Robin Davies told RNZ steel dumping was happening in New Zealand, and that could have a drastic impact on the domestic industry.

"If you look at all members of the World Trade Organisation, Australia, Canada, the EU, large parts of Asia, have all brought trade remedies for anti-dumping and countervailing duties on steel to date.

"New Zealand is just about the only country that hasn't.

"There's a massive oversupply from China which has driven that process, and we are very concerned from a New Zealand steel point of view that there is steel dumped and subsidised at this time."


Get the RNZ app

for ad-free news and current affairs