MEPS’s global steel production and capacity round-up

The UK government took control of British Steel’s Scunthorpe operations and Jindal Stainless vowed to strengthen India’s “self-reliance in stainless steel manufacturing” as the importance of domestic steelmaking made headlines across the world, this month.

Both developments feature in MEPS International’s monthly global steelmaking capacity round-up, which compiles announcements from steelmakers across the world. This month’s summary features content previously featured in MEPS’s April editions of its European Steel Review, International Steel Review and Stainless Steel Review publications.

These monthly Reviews also provide steel prices and indices, reports on key steel markets and six-month steel price forecasts. Contact MEPS for details of how to subscribe.

Europe

British Steel

The UK government has taken control of British Steel’s Scunthorpe operations.

The step was taken after the company, which owned by China’s Jingye Group, announced plans to shut down its two remaining blast furnaces and steelmaking operations.

British Steel cited daily losses of GBP700,000 per day as it opened consultation on the planned closure on March 27. Long products producer, British Steel, attributed the unsustainable financial position to challenging market conditions, tariffs, and mounting environmental costs.

In response, Parliament passed emergency legislation which grants Business Secretary, Jonathan Reynolds, powers to intervene and assume control of domestic steelmakers.

The Jingye Group remains the owner of British Steel despite the change, which included the appointment of a new interim chief executive and chief commercial officer for the steelmaker.

Celsa

Equipment manufacturer SMS has been contracted by Spanish long product manufacturer Celsa to modernise EAF No.2 at its Castellbisbal site, near Barcelona.

The work, planned for November 2025, includes the installation of an automated slag removal system that will improve operational safety while also increasing the furnace yield.

Separately, Celsa confirms that it has reached an agreement with investment firm CriteriaCaixa to sell a 20% stake in its business. The deal is expected to be finalised in the coming weeks.

UK trade defence

The UK Trade Remedies Authority (TRA) will conduct a full review of the safeguard measures applied to imports of finished steel products entering the United Kingdom.

The review was prompted by evidence submitted by UK Steel, a trade association that represents the domestic industry. It claimed that there has been a significant change in circumstances since the safeguards were first implemented.

UK Steel’s submission noted that the quotas of certain categories of steel (namely categories 4, 7 and 13) are being “dominated and exhausted by individual countries”. 

The TRA had announced the start of a review into the UK safeguard measures’ developing nation exemptions, in March.

Fagersta Stainless

Fagersta Stainless has awarded Danieli a contract to install a new bar-in-coil line at its facility in Sweden.

The new equipment set to be installed for Fagersta – part of the Marcegaglia Group – is scheduled for commissioning in quarter one of 2026. It will produce not only rounds but also squares and hexagons, starting from 8.5mm and 8.8mm diameter in one tonne coils.

The line will have an initial capacity to produce up to 35 one-tonne coils per hour, with a future potential to produce two-tonne coils at a rate of 50 tonnes per hour. Integration of the new equipment into the Fagersta site’s existing hot rolled bar and wire rod operation will enhance the company’s product range and improve energy efficiency.

Asia

Jindal Stainless

Jindal Stainless has had its plans to build a four million tonne per year capacity stainless steel plant in Maharashtra approved by the region’s government.

The Indian steelmaker will invest around INR400 billion (USD4.7bn) in the project, which will take 10 years to complete and is expected to create 15,000 jobs.

Jindal Stainless managing director Abhyuday Jindal said that the new facility would enhance the company’s product portfolio, catering to emerging industries such as the hydrogen, nuclear energy, defence, mobility, infrastructure and process industries.

He added that the new plant would strengthen India’s “self-reliance in stainless steel manufacturing”.

A recent report published by the Indian Stainless Steel Development Association revealed ambitious plans to grow India’s stainless steel production capacity from its current 6.6-6.8m tonnes. It said that the country would target production capacity of 9.3-9.5m tonnes by 2030, rising to 12.5-12.7m tonnes by 2040 and 19-20m tonnes by 2047.

Hongyi New Materials

Hongyi New Materials, a subsidiary of Jinhai Huihuang Group, is set to increase its stainless steel processing capacity by one million tonnes per year with the development of a new facility in Wuzhou, China.

The new facility will include two 1,050mm wide continuous rolling mills and three pickling and annealing lines. The site will primarily produce 2B stainless steel.

Hongyi New Materials’ USD340 million project is scheduled for completion in August 2025.

Posco

Posco Holdings has confirmed plans to divest its USD320 million stake in Nippon Steel, bringing an end to a 25-year cross-shareholding relationship.

The decision is part of Posco’s broader strategy to streamline operations and improve financial efficiency. It follows Nippon Steel’s announcement, last September, of its divestment from Posco.

Both companies have described the move as a mutual agreement, while affirming that their strategic cooperation will continue.

Yuxin Iron & Steel

China’s Yuxin Iron & Steel has issued equipment manufacturer Danieli the final acceptance certificate for the newly installed EAF at its facility in Huzhen, Zhejiang province.

The 140-tonne furnace has an annual production capacity of up to 1.1 million tonnes. The project also included the construction of two 140-tonne ladle furnaces.

Jiangsu Shagang

Jiangsu Shagang has recommissioned blast furnace No.4 at its Zhangjiagang plant following the conclusion of a four-month maintenance period.

The furnace was upgraded with the replacement of its bosh, belly, and lower stack. Its coolers were also replaced, with the aim of prolonging its service life. Blast furnace No.4 has a capacity of up to 4.5 million tonnes per year.

North America

Hyundai Steel

Hyundai Motor Group has confirmed that its affiliate company Hyundai Steel, will construct a new EAF-based steel mill in Louisiana.

The new facility will have an annual production capacity of up to 2.7 million tonnes. It will recycle steel scrap sourced from the local region to produce steel sheets for its automotive plants in Alabama and Georgia.

Hyundai’s steel mill development forms part of the carmaker’s plan to invest up to USD21 billion into enhancing its wider US operations.