Other countries, including India, Italy, South Korea and Taiwan, have also been cited as contributing to the global steel glut. Gonçalves said that each country had its own set of subsidies and problems that "create the massive problem of dumping steel in the international market."
Similarly to the oil industry, however, despite a slump in demand, some producers have been slow to cut production in a bid to support prices and in 2015, the OECD forecast that global nominal steelmaking capacity is projected to increase to 2.36 billion tons by 2017, up from 2.16 billion tons in 2013.
In addition, it said that non-OECD economies (such as China) are expected to lead the capacity expansion in the global steel industry, with their share of world capacity expected to increase to 71.4 percent by 2017.
There aren't signs that global steel production is slowing in the immediate term.
While world crude steel production was 385.7 million tons (Mt) in the first three months of 2016, down 3.6 percent compared to the same period in 2015, according to the World Steel Association, China's crude steel production for March 2016 was 70.7 Mt, an increase of 2.9 percent compared to March 2015. India's crude steel production was 8.1 Mt in March 2016, up by 3.4 percent on March 2015.
"Just based on the numbers, China is by far the largest problem," Gonçalves said, accusing China of not abiding by the rules of international trade. "You can't call yourself competitive if your competitiveness is based on cheating the international rules of trade. Trade without fairness is not trade, it's war."