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Severstal Billionaire Proposes WTO as Route to Steel Cuts

Alexey Mordashov, who has lost about $1.4 billion of his fortune in a year from a slump in steelmaker OAO Severstal’s shares, says countries need to agree on global cuts in output to save the industry from itself.

Intervention coordinated at forums such as the World Trade Organization or Organization for Economic Cooperation and Development would rein in excess production that’s kept prices low, according to Mordashov. Producers are caught in a bind as they can’t afford to give up on investments in capacity planned before the economic crisis, even as weak prices lead to losses.