West alarmed as global steel capacity set to jump 165 mt by 2027

Excess capacity of that size will inevitably lower the capacity utilisation rate to 70 per cent from 78-79 per cent now

Steelmaking countries in the West are miffed at the prospect of global steel capacity rising by a hefty 165 million tonnes (mt) during 2025–27 when the industry is already confronting poor demand and low metal prices. One common fear is that, with such big new capacity coming on stream, the mills will be constrained to further limit production.

 

Anthony de Carvalho, steel division head at Organization for Economic Co-operation and Development (OECD), warns that the emergence of a significant difference between capacity and demand will contribute to financial stress for the industry, including the most efficient steelmakers. The global surplus