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Malcolm Turnbull and Barack Obama discuss global glut in steel Malcolm Turnbull and Barack Obama discuss global glut in steel
(4 months later)
Barack Obama and the Australian prime minister, Malcolm Turnbull, have discussed by telephone the global glut in steel supply, which many blame on chronic overcapacity at Chinese producers of the construction material.Barack Obama and the Australian prime minister, Malcolm Turnbull, have discussed by telephone the global glut in steel supply, which many blame on chronic overcapacity at Chinese producers of the construction material.
China’s steel production hit a record high this year as rising prices, and profits, encouraged mills that had been shut or suspended to resume output.China’s steel production hit a record high this year as rising prices, and profits, encouraged mills that had been shut or suspended to resume output.
“The two leaders ... discussed the need to work together to address the global glut in steel,” the White House said in a statement, adding that the conversation covered a wide range of economic and defence issues.“The two leaders ... discussed the need to work together to address the global glut in steel,” the White House said in a statement, adding that the conversation covered a wide range of economic and defence issues.
China, the world’s top steel producer and exporter, is also the fifth-largest importer of steel, buying an equivalent of 13.57m tonnes of crude steel last year.China, the world’s top steel producer and exporter, is also the fifth-largest importer of steel, buying an equivalent of 13.57m tonnes of crude steel last year.
Related: Labor plans boost in use of Australian steel for government projects
Last month China and other major steel producers failed to agree on measures to tackle the overcapacity crisis, prompting the US, the EU and others to call for urgent action.Last month China and other major steel producers failed to agree on measures to tackle the overcapacity crisis, prompting the US, the EU and others to call for urgent action.
China plans to shed 100m-150m tonnes of domestic crude steel capacity in the next five years in an attempt to help tackle huge capacity overhangs that have saddled domestic firms with losses and debts.China plans to shed 100m-150m tonnes of domestic crude steel capacity in the next five years in an attempt to help tackle huge capacity overhangs that have saddled domestic firms with losses and debts.
Turnbull said he had raised the issue with top Chinese officials and that while he welcomed their commitment, more than “strong intentions” were needed.Turnbull said he had raised the issue with top Chinese officials and that while he welcomed their commitment, more than “strong intentions” were needed.
“Now, the president and I have agreed that Australia and the US will intensify our collaboration to ensure that the overproduction of steel is addressed,” the prime minister told reporters in Melbourne.“Now, the president and I have agreed that Australia and the US will intensify our collaboration to ensure that the overproduction of steel is addressed,” the prime minister told reporters in Melbourne.
“We need to address this issue because it is important that the viability of steel makers in our country, and in the US and other nations, is preserved and not undermined by the exporting or the dumping of very cheap steel made in places where it is being produced at way below the real cost.”“We need to address this issue because it is important that the viability of steel makers in our country, and in the US and other nations, is preserved and not undermined by the exporting or the dumping of very cheap steel made in places where it is being produced at way below the real cost.”
Chinese officials have said they are already taking sufficient steps to curb capacity, while state news said blaming the country for the global steel industry crisis was a lazy excuse for protectionism that would be counter-productive.Chinese officials have said they are already taking sufficient steps to curb capacity, while state news said blaming the country for the global steel industry crisis was a lazy excuse for protectionism that would be counter-productive.