Government and industry representatives from China, OECD Member states, Brazil, India and the Russian Federation held a ground-breaking workshop on steel markets, trade and structural adjustment in Shanghai on 10/11th May.
The issues considered included a detailed exchange of views on the global steel market situation and focused on recent developments of demand, trade, production, capacity and prices in countries participating in the OECD Steel Committee and in China. Developments in other areas such as the Russian Federation, Latin America and South East Asia were also taken into account.
The Workshop discussed selected steel policy developments in OECD and other steel producing countries. In particular discussions concentrated on China steel trade policies, the development of China's steel industry, and the potential impact of its accession into the WTO. Furthermore participants exchanged views and clarified the restructuring of their steel industries and addressed the environmental impact of steel making and highlighted efforts to facilitate the implementation of cleaner, energy-efficient production technologies.
While no effort was made during the meeting to reach formal consensus, participants, inter alia:
noted that global steel demand reached record levels in 2000; but despite the excellent global performance, market conditions deteriorated during the second half of the year and prices for many steel products declined dramatically. In 2001, while steel consumption is expected to decline, lower steel production and reduced inventories may lead to a recovery in prices for steel products and better performance for steel companies this year as long as trade remains fair and unrestricted;
recognised that, while the legal frameworks for international steel trade have become more liberal, there is increasing use of trade remedies world-wide and that the underlying causes of trade frictions should be addressed and multilateral solutions sought;
were informed about the implementation and reform of China's foreign trade policy and noted that accession of China to the WTO goes much beyond the reduction of tariffs and will greatly affect the trade and development of the steel industry in China. Participants in particular welcomed the positive attitude the Chinese industry in taking in order to cope with the changes and challenges of the country's accession;
took note of the developments of the Chinese steel industry in the late nineties and the reform targets established under the 10th Five Year Plan. There was agreement that restructuring of the steel industry remains an issue in most parts of the world. It was highlighted that successful restructuring puts an industry in a more competitive position and able to undertake the changes that are required without needing state support;
agreed that energy conservation, waste reduction, recycling and the move towards cleaner production technologies are priority objectives of the steel industries in China and the OECD area and voiced concern that future environmental improvements may only be achieved at a slower pace.
OECD Delegations encouraged the Chinese Delegation to continue its efforts to seek observership in the OECD Steel Committee as of the most appropriate means to intensify co-operation. In addition, participants stressed the importance of bilateral contacts between government and industry representatives of OECD Member countries and China. Furthermore, participants agreed to hold a similar workshop on issues of common concern in the not too distant future in order to strengthen such dialogue and co-operation.
The co-chairmen of the workshop, Mr. Wu Xichun, the leader of the Chinese Delegation, and Mr. Hans Colliander, the chairman of the OECD Steel Committee, both expressed their satisfaction with the success of the two day meetings.
