MEPS: New steel investments and trade measures reshape global market

Global steelmakers continue to invest in new production capacity, downstream upgrades and decarbonisation projects, while Europe and the UK tighten trade defence measures amid ongoing overcapacity concerns, according to MEPS International’s latest steel industry round-up.

In Europe, ArcelorMittal plans to restart blast furnace No.1 at Fos-sur-Mer in France following a EUR90 million upgrade, while also advancing electrical steel investments in Mardyck and restarting galvanising capacity in Belgium. Marcegaglia has finalised a EUR450 million contract with Danieli for a new steelmaking and hot rolling facility at Fos-sur-Mer, based on scrap and HBI.

At the policy level, the EU has agreed on a new steel trade regime to replace existing safeguards from July 1, 2026. The framework includes tariff-free quotas of 18.3 million tonnes and a 50% tariff on imports exceeding quota levels, alongside a new “melt and pour” origin requirement. The European Commission has also confirmed the first CBAM certificate price for Q1 2026 at EUR75.36.

The UK is also tightening trade protection, introducing new tariff-rate quotas for stainless long products from July, with imports above quota levels facing 50% duties.

In North America, Hyundai-Posco’s planned Louisiana steel mill continues to advance, with Fives Group securing a contract for coil finishing lines at the direct reduction and EAF-based facility, which will mainly supply automotive steel.

Across Asia, investment activity remains strong. Jindal Stainless has commissioned a new stainless melt shop in Indonesia through its joint venture with Tsingshan Group, while Nippon Steel has started commissioning a new hot strip mill at Nagoya Works and begun construction of a new EAF at Kyushu Works.

Chinese producers are also expanding higher-value steel production. Valin Xianggang is investing in a new special steel rolling line in Hunan Province, while Shandong Fulun Iron & Steel has commissioned an upgraded billet caster targeting pipeline, wind power and engineering steel applications.

Source: MEPS, Photo: Fotolia