MEPS’s global steel production and capacity round-up

MEPS’s steelmaking capacity round-up detailed AcelorMittal’s delayed decarbonisation projects in Germany and trade defence developments in the United Kingdom, EU and Taiwan, this month.

The monthly summary, provided below, brings together steelmaking capacity developments previously featured 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.

Europe

ArcelorMittal

ArcelorMittal has placed the decarbonisation plans for its Bremen and Eisenhüttenstadt plants in Germany on hold.

The project, originally scheduled to begin construction in June 2025, aimed to replace traditional blast furnaces with DRI and EAF equipment.

However, the steelmaker has now determined that the economic case for the transformation was unviable, despite receiving EUR1.3 billion in financial support from the German federal government and regional authorities.

In stating the reasons for its decision, ArcelorMittal said that green hydrogen is not yet a viable fuel source, while natural gas-based DRI production is not competitive as an interim solution.

ArcelorMittal has reaffirmed its commitment to reducing the carbon footprint of its operations but acknowledges that meeting its 2030 carbon emissions target is becoming increasingly unlikely.

Separately, ArcelorMittal has confirmed that it will sell its operations in Bosnia and Herzegovina, including the Zenica steel mill and Prijedor iron ore mine, to Bosnia-based Pavgord Group. Net of sale proceeds, the company anticipates recording a USD200 million accounting loss in the transaction. The deal is expected to be finalised in quarter three.

Trade Defence – Europe

The European Commission has opened consultation to guide new legislation that will replace the EU’s steel safeguard mechanism, which is due to expire on June 30, 2026.

The consultation is being launched amid concerns over global steelmaking overcapacity and the effect of recent US tariff increases, which could see increasing steel exports diverted to the EU.

It will remain open until August 18, 2025, and the Commission is inviting input from across the steel supply chain. A legislative proposal is expected to be published by the Commission later in quarter three.

Separately, the UK government is reviewing its steel safeguard system. The UK consultation, open until August 7, 2025, aims to develop a replacement scheme tailored to the needs of its domestic market.

UK trade defence

The UK government has launched a formal call for evidence to determine a replacement for current steel safeguard measures, which are due to expire in June 2026.

Stakeholders are invited to provide data on production, imports, and the impact of safeguards, as well as views on how to protect the domestic industry after expiry of the current measures. Their input will guide future trade policy decisions. Submissions must be made via an online survey by August 7.

Tata Steel UK

After several months of preparatory work, Tata Steel UK has broken ground on the new EAF development at its site in Port Talbot, South Wales.

The GBP1.25 billion facility will have an annual production capacity of 3.2 million tonnes and is expected to begin operations in late 2027 or early 2028.

Once commissioned, the EAF is projected to reduce carbon emissions by around 90% compared with the blast furnaces that previously operated at the site.

Acerinox

Acerinox’s quarter two financial results showed an 9% year-on-year increase in revenues, to EUR1.08 billion, for its stainless steel division.

During the reporting period, the division produced 480,000 tonnes of stainless steel, a year-on-year increase of 25%.

Total group revenues amounted to EUR3.1bn in the first six months of this year, an increase of 10% year-on-year.

However, its net financial debt, of EUR1.2bn, increased by EUR27m quarter-on-quarter, in its April-June reporting period due, primarily, to the effect of the depreciation of the US dollar.

North America

Trade defence – Canada

The Canadian government has confirmed that it is imposing a new 50% tariff on above-quota steel imports as part of its newly introduced trade defence measures.

Quarterly quotas apply to five categories – flat, long, pipe and tube, semi-finished, and stainless steels – under the new legislation, implemented from June 27. There are limits on the amount of quota usage any one country can utilise.

The measures will initially be imposed for one year – expiring on June 26, 2026 – unless otherwise amended by Canadian authorities. Countries with which the nation has trade deals, such as the United States, Mexico, South Korea and EU member states, will be exempt from this order.

An additional 25% tariff will be applied to imports of steel that has been “melted and poured” in China.

Algoma Steel

The first of two new EAFs at Algoma Steel’s Sault Ste. Marie facility in Ontario, Canada, has entered service following 10 days of testing.

The company broke ground on the project in November 2021 and Algoma Steel expects to commission the second furnace before the end of this year.

When completed the two furnaces will have a combined annual production capacity of up to 3.7 million short tons and are expected to reduce the emissions produced at the site by up to 70%.

Steel produced by Algoma’s new EAFs will bear the company’s new Volta branding, denoting its production via the low emissions route.

East Asia

Trade defence – Taiwan

Taiwan’s Ministry of Finance has confirmed the imposition of preliminary antidumping duties on hot rolled coils originating from China.

Material from Baoshan Iron and Steel, Baosteel Zhanjiang Iron and Steel, and Shanghai Meishan Iron and Steel will receive a lower rate of 16.9%, with all other Chinese manufacturers or exporters receiving a rate of 20.15%.

The measures will apply for an initial period of four months. This will allow time for an investigation to determine the level of definitive duties.

Trade Defence: Japan

Japanese authorities have begun an antidumping investigation covering stainless cold rolled coils and sheets sourced from China and Taiwan.

The year-long investigation was launched following a complaint from Nippon Steel in May, which claimed that imported products were being sold in Japan at prices 20-50% lower than in China and 3-20% cheaper than in Taiwan.

JFE Steel

Japan’s JFE Steel Bars and Shapes is set to replace the EAF at its Mizushima Works in Kurashiki, Okayama Prefecture.

Danieli, which will conduct the installation of the new EAF on behalf of JFE Steel, stated that on completion of the work the new furnace “will be one of the largest EAFs in the world, in terms of tapping capacity”.

JFE’s old EAF had been in service for 30 years. Its replacement is expected to be commissioned in spring 2028.

Fujian Tsingtuo Special Steel

Tsingtuo Special Steel has commissioned an integrated stainless steel plate line at its Ningde facility in Fujian province.

The company has stated that by integrating hot rolling, hot charging, hot annealing, online finishing and surface treatment the new equipment will use 30% less energy than traditional methods.

The USD280 million project was first announced in January 2024. It has an annual production capacity of up to one million tonnes of plate, with widths up to 3,500mm.

Fujian Hongwang

Fujian Hongwang is set to commission a bright annealing line at its facility in Fu’an, Fujian province, following the installation of an annealing furnace.

It plans to commission the line, which has capacity to process up to 250,000 tonnes of 400-series stainless steel flat products per year, during August. The company is also working to increase its cold rolling capacity with a new continuous rolling line, which it expects to commission in the second half of 2026.