MEPS analysis: Global steel capacity developments and trade defence measures intensify

MEPS International’s December steel production and capacity round-up points to continued structural change in global steelmaking, with capacity adjustments in Europe, new stainless investments in China and a clear tightening of trade defence measures across several key importing regions.

In Europe, Thyssenkrupp Steel has agreed a far-reaching collective restructuring package with the IG Metall trade union covering its Duisburg operations. The programme enables immediate implementation and foresees the reduction or outsourcing of around 11,000 jobs, equivalent to roughly 40% of the site’s workforce. Crude steel shipment capacity is to be cut from around 11.5 million tonnes to about 9 million tonnes per year. Funding for the restructuring has been secured through to 2030. Despite the scale of the measures, Thyssenkrupp confirmed that construction of its direct reduction (DRI) plant in Duisburg will continue as planned, even as talks with India’s Jindal Group over a potential acquisition of the steel business remain ongoing.

ArcelorMittal is pressing ahead with targeted upgrades at several European sites. In Germany, the group has completed the modernisation of the reversing cold mill at Eisenhüttenstadt, improving strip cleanliness, surface quality and process control to support higher-quality silicon steel production, while also reducing emissions through improved extraction and filtration. In France, the first three lines of a EUR 500 million electrical steel project at Mardyck, near Dunkirk, are scheduled to start up by year-end, lifting capacity to 155,000 tonnes per year. A second construction phase is already under way, with a total of five new lines planned by 2027. In Spain, ArcelorMittal is temporarily halting a coating line at Avilés for upgrades, while efforts continue to restart blast furnace B at the nearby Gijón plant following maintenance.

In Asia, Chinese stainless producers continue to expand processing capacity. Guangdong Baojia Technology is moving ahead with commissioning a large stainless steel processing complex in Jieyang after receiving environmental approval. The site will be capable of producing up to 600,000 tonnes per year of stainless coils across the 200, 300 and 400 series, alongside 400,000 tonnes of slitting capacity. Separately, Zhaoqing Hongwang Metal Industry plans to lift stainless cold rolling output at its Guangdong facility through upgrades and the addition of a new bright annealing line, with start-up expected in early 2026.

MEPS also highlights a clear escalation in trade defence activity. South Korea has opened a new antidumping investigation into Chinese-origin coated steel products and launched a sunset review of existing duties on Chinese steel beams. Taiwan has confirmed five-year antidumping duties on certain Chinese hot rolled coil and plate products, replacing provisional measures imposed earlier in the year. In North America, Canada is tightening protection for its domestic steel industry by sharply reducing tariff-rate quotas from late December 2025, while also introducing “Buy Canadian” requirements for large federal construction and defence projects.

Source: MEPS, Photo: Fotolia