BERLIN Nov 26 The G20 group of leading
economies must find a solution to excess capacity in the global
steel industry, German Chancellor Angela Merkel said on
Saturday, adding that overproduction in some countries was
causing job losses elsewhere.
Merkel said Germany, which takes over the G20 presidency
next month, would push for a collective solution for the
worldwide glut that has dampened steel prices for years and
raised tensions between China and other major producers.
European and U.S. leaders have pressed China to accelerate
capacity cuts, blaming its big exports for slumping prices and
accusing it of dumping cheap steel in foreign markets.
"For example, at the G20 summit in China, we discussed in a
very open manner overproduction in the steel sector, which is
resulting in people in the steel industry losing their jobs,"
Merkel said in her weekly podcast.
"We must solve this problem together, so that we don't have
a situation where one country wreaks damage on other countries,"
China has vowed to cut capacity by 45 million tonnes this
year, though it said in August it was behind on that target.
Last month, the European Union set provisional import duties
on two types of steel entering the bloc from China to counter
what it said were unfairly low prices. The measure was
criticised by Beijing, which accused the bloc of engaging in
Some 5,000 jobs have been axed in the British steel industry
in the past year as it struggles to compete with cheap Chinese
imports and high energy costs.
G20 leaders pledged at a summit in China in September to
work together to address excess steel capacity that has punished
the global industry with low prices for years.
(Reporting by Joseph Nasr; Editing by Helen Popper)