G20 trade ministers agree to tackle global steel overcapacity

G20 trade ministers reached an agreement on Sunday to tackle steel overcapacity, according to Gao Hucheng, China's commerce minister.

They stated that excess capacity of steel and other industries is a global issue, and agreed to "strengthen communication, deepen cooperation, and take effective measures to deal with such a challenge", Gao said at a news conference of the G20 Trade Ministers Meeting in Shanghai.

China accounts for almost half of world steel production, while more than 80 percent of its iron ore depends on imports. Last year, the country exported 120 million metric tons of steel at a value of $61.2 billion, and imported 956 million tons of iron ore at a value of $57.2 billion.