Question to the Department for Business, Energy and Industrial Strategy:

To ask Her Majesty's Government what assessment they have made of the viability of the global steel market.

The steel industry has changed significantly in recent times. From the peak reached in 2011 to the start of 2016, the price of steel more than halved, driven by excess production capacity at a global level.

Conditions have improved slightly in 2017 and there are signs of recovery in several markets. The World Steel Association forecasts 1.6% growth in global steel demand in 2018 and modest growth in the years to come as the market adjusts to new technologies and demographic changes.

The most recent OECD estimate puts global steel capacity at 2,357 million tonnes, 657 million tonnes in excess of production in 2017. Changes in global capacity are slowly starting to take effect, as OECD data suggests a fall of 0.6% from 2016 to 2017, and an increase in capacity utilisation from 69% to 72% in the same period.

The underlying causes of excess capacity remain, however. The UK is committed to finding a solution to this problem. We have worked though the G20 to agree policy principles to tackle the unfair state support that has led to excess capacity. We now need to see all member countries act swiftly on those proposals.