MEPS’s global steel production and capacity round-up

Jindal Steel’s bid to acquire Thyssenkrupp Steel Europe, the widening scope of US Section 232 tariffs and confirmation of the January 1 implementation of EU CBAM taxes all feature in this month’s MEPS steelmaking capacity round-up.

The monthly summary features MEPS’s articles on steel industry developments, which were previously featured in the September editions of the 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

Thyssenkrupp

Thyssenkrupp has received a non-binding bid to acquire its European steel operations from Indian steelmaker Jindal Steel International.

Thyssenkrupp said that its board would examine the offer for Thyssenkrupp Steel Europe closely in a statement issued following Jindal’s bid on September 16.

In a separate statement, Jindal said that it would invest EUR2 billion to realise the development of the DRI facility at Thyssenkrupp’s Duisburg site and create additional EAF capacity. The steelmaker said that it has “a clear vision for decarbonisation as well as competitive steel production in Germany”.

Jindal’s offer comes just two months after Thyssenkrupp reached a cost-cutting agreement with German trade union IG Metall. The plan includes a reduction in working hours, lower bonuses, potential for job cuts, and plant closures which would reduce crude steel capacity from 11.7 to 8.7-9m tonnes.

EU CBAM

The European Commission has confirmed that the start date for the CBAM definitive period will remain unchanged, at January 1, 2026.

This follows lobbying from steel industry trade bodies which suggested that importers would require more time to comply with the new rules.

In a separate note, the Commission has also launched three consultations to gather feedback on a range of potential CBAM alterations.

The Commission’s consultation document says that industry stakeholders have until September 25 to share their views on: rules on the alignment of the EU’s CBAM and ETS schemes; third-country carbon pricing; and the methodology for determining embedded emissions and default values during the definitive period.

Marcegaglia

Marcegaglia has awarded equipment manufacturer Danieli a contract to supply equipment for its EUR800 million flat steel minimill project in Fos-sur-Mer, southern France.

The facility will have capacity to produce 2.1m tonnes per year of stainless and carbon steel hot rolled coil, providing around 30% of Marcegaglia’s hot rolled coil production requirements.

Included in the new development will be an EAF with continuous scrap charging, twin-ladle refining, vacuum degassing and a combined Steckel and five-stand hot strip mill. This will enable both flexible production and reduced emissions, Marcegaglia says.

The steelmaker plans to break ground on the project in 2026, following its acquisition of the Fos-sur-Mer site from Ascometal last year. Commissioning is planned for 2028.

AFV Beltrame

AFV Beltrame Stahl Gerlafingen has completed the upgrade of its wire rod mill in Gerlafingen, northwestern Switzerland.

The revamped mill is designed to produce 600,000 tonnes per year of rebar in diameters ranging from 6mm to 20mm and wire rod in sizes between 5.5mm and 20mm.

The upgrades are designed to eliminate vibration-related shutdowns, improve coil formation and enable higher production speeds. It also integrates real-time tension monitoring, enhancing process stability, yield and overall product quality.

North America

Section 232 tariffs

The US government has opened a second window in which industry stakeholders can apply for derivative steel products to added to its Section 232 import tariff regime.

Inclusion requests must be submitted to the Bureau of Industry and Security before September 29 and should include product details and tariff classifications. After the window closes, requests accepted by the Bureau will be posted for a two-week public comment period, followed by a 60-day review before final determinations are published.

In the first review window over 400 products were added. Only 60 applications were denied, mostly due to overlap with existing tariffs.

Vinton Steel

Vinton Steel has broken ground on the expansion project at its long product facility in El Paso, Texas.

The new equipment will include a 45 short ton capacity EAF, alongside a ladle furnace, continuous casting unit and a fully automated material handling system. This will increase the company’s annual production capacity from 250,000 short tons to 400,000 short tons.

As part of the project, Vinton Steel has recently awarded a contract to Tenova to deliver a state-of-the-art walking hearth reheating furnace.

The company will invest close to USD250 million in upgrading the El Paso site. It expects the new equipment to enter service in the first half of 2027.

Asia

Guangqing Metal Technology

Guangqing Metal Technology has submitted plans for a USD35 million project to upgrade its steelmaking operations to regional authorities.

The development will see the company, based near Yangjiang, Guangdong province, supplement existing EAFs, in steelmaking plants 1 and 2, with new alloy melting furnaces capable of processing ferronickel, ferrochrome, cast iron and other alloy materials. This will raise the company’s annual melting capacity to 870,000 tonnes.

In addition, a single-strand slab continuous caster will be installed, enabling production of 400,000 tonnes per year of 400-series stainless steel slabs.

The project aims to improve operational efficiency and reduce energy consumption. It is scheduled for completion in March 2026.

Hongyi New Materials

Hongyi New Materials, part of Jinhai Huihuang Group, has commissioned the first stage of its stainless steel processing facility near Wuzhou City, Guanxi province.

The plant can now produce up to 450,000 tonnes per year of 2B surface finish stainless steel.

The site’s newly installed equipment includes a 1,050mm, 18-high, six-roller continuous rolling line and a continuous annealing and pickling line. A second stage will add a further rolling unit and two additional annealing and pickling lines, increasing capacity to one million tonnes per year.

Yangzhou Hengrun

Yangzhou Hengrun Ocean Heavy Industry has commissioned a two million tonnes per year capacity cold rolling and pickling line at its site in Jiangsu province, China.

The new line will produce cold rolled coil with thicknesses between 0.4mm and 0.6mm for application in new energy vehicle components, precision pipes and high-end construction.

The privately owned company is also building two continuous hot dipped galvanising lines and two colour coating lines, scheduled for commissioning in quarter four of this year.

Production

Stainless

Global stainless steel production increased by 3.1% year-on-year to 16.4 million tonnes in quarter two of 2025, according to the latest figures released by worldstainless.

Chinese steelmakers accounted for almost two-thirds of the total, producing 10.5m tonnes. This represented a 9.6% increase on the April-June period of last year. Mills in the rest of Asia also increased output by 4.1% year-on-year, producing a combined 3.5m tonnes.

Production volumes in the United States increased to 0.6m tonnes, an increase of 7.8% year-on-year.

European steelmakers were the only group recording a year-on-year decline in production. Their output of 1.5m tonnes was 5.1% below the figure for quarter two of 2024.