The Organization for Economic Co-operation and Development (OECD) Steel Committee discussed risks to the steel market outlook and responses, including a steel crisis caused by rising energy costs and excess capacity. In addition, the global steel industry is at increasing risk of recession, primarily due to the ongoing war in Ukraine.

At the same time, the sharp drop in steel prices and the soaring energy costs due to the war in Ukraine has put considerable pressure on steel producers' profitability. As a result, weak steel demand coupled with further increases in steelmaking capacity was expected to increase over the next few years.

With overcapacity expected to increase over the next few years, weak steel demand coupled with further increases in steelmaking capacity, the OECD discussed avoiding subsidies and other measures to stimulate steel production and restrictive trade policies on raw materials to prevent oversupply.