Global steelmaking capacity continues to expand despite weak demand, threatening to push prices lower and distort competition.
Steel is a critical material for a wide range of industries, from construction and manufacturing to electric vehicles and data centres.
The OECD says government subsidies are a major driver of global overcapacity, with much of the increase in steelmaking capacity over the past two decades taking place outside OECD countries, often with state support.
In 2024, the median Chinese steel firm received subsidies equivalent to 15 times those received by producers elsewhere, relative to total assets, according to the OECD.
At the same time, Chinese steelmakers exported a record 131 million tonnes of steel in 2025, a 153% increase from 2020 and more than the European Union's total steel production that year.
