MEPS’s global steel production and capacity round-up

Aperam’s acquisition of Universal Stainless, China’s production growth and the restart of Poland's Huta Czestochowa steelworks are among the developments reported in January's global steel capacity round up from MEPS International.

The monthly summary of the steel sector’s most changes to steelmaking operations and trade defence measures draws on article first published in the January editions of MEPS’s European Steel Review, International Steel Review and Stainless Steel Review.

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Europe

Huta Czestochowa  

Poland's Huta Czestochowa steelworks has resumed production after a 15-month suspension.   

The plant, which is currently leased and operated by state-owned coal exporter Weglokoks, was restarted on January 20 after a programme of equipment testing.   

The Huta Czestochowa facility includes an EAF with an annual production capacity of 700,000 tonnes and a plate mill capable of producing up to 1.2 million tonnes of steel plate per year. However, Weglokoks is targeting a monthly output of 20,000 tonnes in February, rising to 45,000 tonnes by May.   

Huta Czestochowa is viewed as a strategic asset for Poland’s defence and offshore wind sectors. It is due to be auctioned by the Polish government in February, with Weglokoks given the right of first refusal. The starting price is USD55 million.  

British Steel  

British Steel is now operating two blast furnaces at its Scunthorpe site after refiring its Queen Anne furnace.   

The furnace was shut down last year due to production issues encountered following a shift to the use of imported coking coal after the closure of the site’s coke ovens in 2023.  

The company has confirmed that the two furnaces will now remain online indefinitely as it has made no final decisions with regards to the number and location of EAFs included in its decarbonisation plans.   

British Steel is currently studying a range of options, including the development of one or two EAFs at Scunthorpe or the development of one EAF at each of its Scunthorpe and Teesside sites.  

Thyssenkrupp  

Thyssenkrupp Steel has completed upgrades to its walking beam furnace in Hot Strip Mill 1 at its Duisburg-Bruckhausen facility.   

The furnace’s new design reduces surface defects and allows for more uniform temperature distribution during the reheating process for slabs.  

Thyssenkrupp expects the new equipment to increase the quality of electrical steel produced at the site.  

Van Merksteijn  

Netherlands-based Van Merksteijn has informed customers of its intention to merge with Germany’s Badische Stahlwerke.  

The merger would create a new joint holding group named Reinforcing Steel Europe. The deal is expected to be finalised in the first half of 2025. The two companies process wire rod and rebar products for the construction industry.  

Trade Defence  

The European Commission has confirmed that provisional antidumping duties will be applied to Chinese-origin tin mill products.   

Duties ranging from 14.1% to 62.6% will be applied to the material following the conclusion of an investigation launched in May 2024. The investigation was prompted by a complaint from the European Steel Association (Eurofer) which contained evidence that these products were being dumped in the European market.  

Network Steel  

Spanish steel processor Network Steel has agreed to purchase thyssenkrupp’s Galmed coil processing plant located in Sagunto, near Valencia, according to local reports.   

Thyssenkrupp announced in November 2023 that it would shutter the plant due to a lack of demand for galvanised products in Spain and in other parts of Southern Europe.  

The facility has capacity to process up to 450,000 tonnes of automotive grade hot dipped galvanised coil per year.

North America

Aperam  

Luxembourg-headquartered Aperam has confirmed the completion of its acquisition of United States-based Universal Stainless.   

Its announcement followed a meeting of shareholders held by Universal Stainless on January 15. Around 99% of shareholders’ votes supported the merger, representing 68% of the company's total outstanding shares.   

The deal, which values the company at USD539 million, has cleared all necessary regulatory checks.   

Aperam expects to achieve annual synergies and cost savings totalling USD30m after taking ownership of Universal Stainless. Founded in 1994 and based in Bridgeville, Pennsylvania, the business produces and sells semi-finished and finished specialty steels, including stainless steel, nickel alloys, tool steel, and other alloyed steels.

Asia

China 

Chinese steelmakers produced 39.44 million tonnes of stainless steel in 2024. 

Data published by the Stainless Steel Council, part of the China Iron and Steel Association, confirmed the figure, which represents a 7.5% increase on 2024’s output. Of this total, 20.29m tonnes was 300 series, 7.17m tonnes was 400 series and 11.56m tonnes was 200 series. The remaining 400,000 tonnes were duplex grades.   

China imported 1.88 million tonnes of stainless steel in 2024, down 9.3% year-on-year, while exports increased by 21.9% year-on-year to 5.04m tonnes. 

South Korea  

The South Korean authorities have confirmed that provisional antidumping duties ranging from 3.66% to 11.37% are to be applied to cold rolled stainless coil imports from Vietnam.   

In a separate announcement it was confirmed that the South Korean Trade Commission has recommended that an antidumping duty rate of 21.62% should be applied to Chinese-origin stainless steel plate.  

HBIS Group  

China’s HBIS Group has commissioned a new single-strand continuous slab caster at its hydrogen-based DRI and EAF steelmaking facility in Xuanhua, Zhangjiakou city, Hebei province.   

The caster has an annual production capacity of up to 1.5 million tonnes, including ultra-low carbon, low-alloy and stainless steel grades that will be supplied primarily to the automotive industry. It produces slabs with thicknesses of 250-300mm and widths of 900-1,900mm.  

The company has also ordered a fourth two-strand continuous slab caster to be constructed at its Tanggang plant in Laoting, Tangshan province. The unit will be capable of producing up to 2.4 million tonnes of slabs per year, when commissioned later this year. This follows the installation of Tanggang’s third slab caster in November 2023, with two earlier units completed in 2020.  

Tangshan Donghua  

Donghua Steel has begun the construction of two 110-tonne EAFs at its facility in Tangshan province, China.   

The EAFs will have an expected annual output of 1.65 million tonnes and work is scheduled to be completed by the end of 2025. This project follows the commissioning of a 150-tonne converter, two ladle refining furnaces, and a 12-strand billet caster in late 2024, as part of the company’s capacity replacement scheme.