The US and Brazil will soon work together in an attempt to mitigate the effects of the overcapacity crisis affecting the global steel market, caused mainly by the surplus of steel from China.
The joint move was proposed by the US government, a Brazilian media report said, citing the Brazilian minister of the development, industry and foreign trade (MDIC), Armando Monteiro.
Monteiro said there’s a “huge concern” regarding the crisis in the two countries, which involves the glut of steel, a strong decline in demand for steel globally, and as a result, “a boom of protectionist measures everywhere to protect the domestic markets.”
Monteiro said Michael Froman, the US Trade Representative, urged a “global coordination” to avoid a worsening of the situation.