The Organization for Economic Co-operation and Development (OECD) has warned that global markets are being burdened by overcapacity in the steel sector, with the Paris-based organization saying in a report that such overcapacity continues to rise worldwide.
The trend is attributed to higher subsidies in some non-OECD economies, including China, the report published on Thursday said.
Last year, Chinese manufacturers exported 131 million metric tons of steel - more than the total amount produced across the entire European Union in the same year, the report said.
Chinese manufacturers received significantly higher subsidies than producers in other countries.
The OECD estimates that global overcapacity will reach 745 million tons by 2028 - some 300 million tons more than the total amount of steel currently produced across the entire OECD area.
OECD Secretary General Mathias Cormann called for stronger international cooperation and a level playing field for steel producers: "Excess steel capacity creates problems for everyone. It distorts global markets. It hurts economic security and resilience. And it discourages innovation and sustainability."