Why the world needs to cut back on production capacity of steel plants

China's contention that the goal of curbing overcapacity in steel has been achieved is only partially true and doesn't bode well for India

China was the only voice of dissonance at the recent Tokyo conclave of Global Forum on Steel Excess Capacity (GFSEC), where it remained inflexible in its demand for its dissolution. Beijing’s stand is based on the specious ground that in the three years since the constitution of GFSEC, the Chinese steel industry has undergone some radical transformation and the goal of curbing overcapacity that periodically causes global steel prices to fall, eroding the margins of steelmakers everywhere, is largely achieved.

One doesn’t have to look beyond China, which alone makes more than half the world’s steel, for an appreciation of