Global Steel, China Steel

Industries have industry associations. Nine of those for steel jointly claim:

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Estimates from the OECD Steel Committee indicate that there is almost 700 million metric tons of excess steel capacity globally today. China’s overwhelmingly state-owned and state-supported steel industry has an overcapacity ranging from 336 to 425 million metric tons and it is expected to grow in the coming years. This situation, together with a declining steel consumption, has resulted in record levels of steel exports from China to the rest of the world in 2014 – and which are on track to exceed 100 million metric tons this year.

What does this say of the nature of the industry? Why large swings in prices? Is this a Bertrand market with occasional price wars?

Additional query: what was the ECSC?

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