The OECD Steel Outlook 2026 sounds an alarm over expanding global steel excess capacity. According to the report, worldwide steelmaking capacity will expand far faster than steel demand over 2026–2028. Global excess steel capacity is forecast to climb to 745 million tonnes by 2028, the highest level in a decade. The total capacity addition in this three-year window may reach 138.8 million tonnes, while global steel demand will only increase by roughly 34 million tonnes. As a result, the global capacity utilisation rate is expected to drop from 76% in 2025 to below 74% in 2028. Lower utilisation rates squeeze mill profit margins and intensify unfair competition in international steel trade. The report notes that new steel capacity additions are concentrated in several emerging economies. Weak demand growth, rising energy costs and regional conflicts create extra headwinds for steel producers. OECD ministers called for coordinated international action to tackle the structural overcapacity crisis and create a level playing field for global steelmakers.