MEPS’s global steel production and capacity round-up

Nippon Steel’s decarbonisation in Japan, the start of production at Hybar’s new Arkansas rebar plant and China’s rising stainless steel production are detailed in MEPS’s latest global steel capacity round-up.

The monthly summary of steelmaking capacity developments detailed in MEPS’s European Steel Review, International Steel Review and Stainless Steel Review. Contact MEPS for details of how to subscribe to these monthly publications, which provide steel prices and indices, market commentaries and six-month steel price forecasts.

North America

ArcelorMittal

ArcelorMittal has acquired the Alabama-based AM/NS Calvert joint venture that it previously operated in partnership with Nippon Steel.

The Japanese steelmaker chose to sell its 50% stake in the facility to ArcelorMittal for a nominal USD1 fee to alleviate any antitrust concerns following its acquisition of US Steel.

As part of the agreement ArcelorMittal also received USD0.9 billion in cash support and loan forgiveness from Nippon Steel.

The site, which has been operating since 2010, has been renamed ArcelorMittal Calvert. It has an annual flat rolled steel production capacity of 5.3m tonnes.

Hybar

Arkansas-based rebar producer Hybar has produced the first bars at its 700,000 short ton per year capacity greenfield site in Osceola.

The USD1 billion facility, which has been under construction since August 2023, can produce straight rebar in US imperial bar sizes #3 to #18. Spools weighing up to eight tonnes can also be produced in sizes #3 to #8.

With construction of the Osceola site completed, the company is now considering whether to expand its operations with at least one new facility. Potential sites in South Carolina, Georgia, Idaho and Washington are under consideration.

Cleveland-Cliffs

Cleveland-Cliffs has commissioned a USD150 million vertical stainless bright annealing line at its Coshocton Works facility in Ohio.

The new line, which has been designed to serve the automotive and white goods markets, employs a 100% hydrogen atmosphere to eliminate the need for traditional acid-based processing.

It also features a hydrogen recovery system, enabling a 50:50 blend of recycled and new hydrogen, enhancing sustainability. Cleveland-Cliffs acquired the Coshocton site as part of its purchase of AK Steel in 2020.

Europe

ArcelorMittal

ArcelorMittal Distribución Iberia has confirmed that it is constructing a new service and distribution centre at its Villaverde plant, in Madrid.

The facility will consolidate operations from the company’s Getafe and Coslada centres and will be equipped with four saws for cutting long products, two saws with drills, an oxy-fuel table, and a shot-blasting and painting line.

ArcelorMittal Distribución Iberia has stated that it expects a “significant improvement in delivery times” when the site becomes operational from quarter one 2026.

Celsa

Spanish investment fund CriteriaCaixa has reversed its earlier decision to take a 20% stake in steelmaker Celsa.

The company’s board of directors has cited the difficult financial situation both in the steel industry and in wider markets as reasons for the decision. Its earlier offer was worth close to EUR350 million.

ThyssenKrupp

Germany-based thyssenkrupp Steel has launched trial operations of the new continuous casting line at its Bruckhausen site, in Duisburg.

Scheduled for full commissioning in the coming weeks, continuous casting line 4 features advanced automation and casting technology to deliver high-precision, high-quality slabs, the company said.

The new equipment replaces the former casting rolling line and integrates with a fully modernised hot strip mill, including a new preliminary line and walking beam furnaces.

East Asia

Yangjiang Hongwang Industrial

Hongwang Holding Group subsidiary Yangjiang Hongwang Industrial has confirmed plans to increase the cold rolling capacity at its facility in Guangdong province, China.

The project will increase output by 400,000 tonnes per year, taking the site’s total annual stainless cold rolled coil production to 1.6 million tonnes per year.

The investment includes upgrades to both an existing four-stand direct rolling, annealing and pickling line, as well as the three-stand continuous rolling and annealing unit.

Production

Data published by worldstainless shows that global stainless steel melt shop output increased by 6.2% year-on-year, to 15.55 million tonnes, in the first three months of 2025.

Steelmakers in China increased their output by 11.2%, to 9.62m tonnes, during the period. This was the highest year-on-year growth recorded for any region.

Mills in Japan, Taiwan and India melted a combined 1.78 million tonnes, down by 3.3% year-on-year. The output of Europe and the United States rose by 2.9% and 8.6%, respectively, reaching 1.61m and 0.55m tonnes.

The total melt shop output of the other regions assessed by worldstainless declined by 4.5% year-on-year, to 1.98m tonnes.

Nippon Steel

Japan’s Nippon Steel plans to invest JPY868.7 billion (USD6.02bn) to transition its steel production to EAF technology at three key sites.

The company intends to construct a new EAF with an expected annual output of up to two million tonnes at its Kyushu Works. Nippon will also modernise a 500,000 tonnes annual capacity EAF at its Setouchi Works and a 400,000 tonnes annual capacity EAF at its Yamaguchi Works. The projects are expected to be completed in 2029.

Nippon’s investment will be supported by JPY251.4bn (USD1.74bn) in funding secured from the Japanese government which was earmarked for carbon reduction initiatives.