Navigating the Steel Transition amid Global Excess Capacity

The global steel industry is at a crossroads, facing the two interconnected challenges of addressing excess capacity and preparing for a low-emissions future. These two challenges are mutually reinforcing. Excess capacity affects the pace at which low-emission capacity adjustments take place, reduces companies’ ability to invest in low-emission capacity and R&D and alters market price signals. Conversely, policies promoting the adoption of low-emission technologies can help steer capacity toward