China Steel Subsidies ‘Distort’ Global Market: OECD

China's subsidies to the steel sector distort the world market as producers cannot match conditions, be to the OECD.

China steel subsidies ‘distort’ global market: OECD

China's subsidies to the steel sector "distort" the world market and hinder investment in a decarbonization of this industry, said the Organisation for Economic Cooperation and Development (OECD) in a report this Tuesday. China is the world's largest steel producer, with more than 1,000 million tons in 2024, and the fall in domestic demand forced its producers to seek markets abroad.

Government support for China's steel industry leads to market distortions because it is artificially produced at low cost and overcapacity is generated, said the Organization for Economic Cooperation and Development (OECD). In Panorama del Steel 2025, the agency said that "China's subsidy rate is ten times higher than that of OECD countries. In addition, there are loans below the market and measures include subsidized energy prices, direct subsi…

China is the largest global steel producer