The world's largest nations need to work together to find an answer for the global over supply of steel, German Chancellor Angela Merkel said today.
Germany takes over the presidency of the G20 group of the world's leading economies next month and Merkel said in her weekly podcast she would push for a collective solution to the excess steel capacity.
An east/west divide has developed regarding steel production with European and US leaders desperate for China to cut production. Merkel said that the global overproduction was causing jobs losses and the west has accused China of dumping its cheap steel onto foreign markets, putting western operations under extreme financial pressure.
"For example, at the G20 summit in China, we discussed in a very open manner overproduction in the steel sector, which is resulting in people in the steel industry losing their jobs," Merkel said in her weekly podcast, according to reports by Reuters.
"We must solve this problem together, so that we don't have a situation where one country wreaks damage on other countries," Merkel said.
G20 leaders pledged to resolve the global over supply in September at a summit in China. The steel industry will hope that Merkel intends to drive these pledges forward, following today's comments.