The Organisation for Economic Co-operation and Development released its 2026 Global Steel Industry Outlook Report, issuing a serious warning on the prominent overcapacity issue in the steel sector. The report predicts that the global steel overcapacity will reach 745 million tons by 2028, far exceeding the actual market demand. At present, the global steel output is 319 million tons lower than the total production capacity. From now to 2028, the world will add about 139 million tons of new steel capacity, a 5.7% increase compared with the level in 2025. However, the annual growth rate of global steel demand is only about 0.9%, which cannot digest the newly increased capacity. The report also mentions that many newly built steel projects are supported by local government subsidies, which disrupt the fair competition order of the international steel market and may trigger more trade frictions.