Steelmakers adjust strategies as trade policies and capacity plans evolve

New investments, capacity expansions and trade policy developments continue to reshape the global steel industry, according to the latest global steel production and capacity round-up published by MEPS International.

The report highlights major developments across Europe, North America and Asia, including the UK government’s plans for British Steel, stronger trade protection measures in Europe, record shipments at Nucor and tighter capacity controls in China.

Europe: Trade measures support confidence

In Europe, the UK government has moved a step closer to bringing British Steel into public ownership after introducing legislation that would allow nationalisation on public interest grounds. The move follows failed negotiations with owner Jingye and forms part of the UK's broader strategy to strengthen domestic steel production.

Meanwhile, Thyssenkrupp and India’s Jindal Steel International have paused discussions regarding a potential acquisition of Thyssenkrupp Steel Europe. The German group cited improving market conditions, stronger trade protection and progress in its restructuring programme.

ArcelorMittal is continuing to restart idled blast furnace capacity in Europe, including facilities in Spain, France and Poland. The company has also received regulatory approval to take full control of Italian service centre operator ArcelorMittal CLN Distribuzione Italia.

The report also notes that the EU’s quota for Russian slab imports has been fully utilised. European institutions have reaffirmed plans to phase out Russian slab imports by September 2028 while expanding sanctions on additional metals and scrap products.

Stainless steel producers see improving outlook

Aperam reported a more than 2% increase in stainless steel shipments during the first quarter, while EBITDA improved despite lower revenues. The company expects European stainless steel capacity utilisation to rise further as safeguard measures and CBAM reduce import competition.

Acerinox also reported improved profitability, with EBITDA rising 27% year on year. The company said European flat stainless steel imports fell sharply following the introduction of CBAM and expects stronger market conditions during the second quarter.

Marcegaglia Stainless is investing in new electric arc furnace capacity at its Sheffield site in the UK and expanding downstream operations in Sweden as it prepares for new UK trade defence measures.

North America: Strong performance and new investments

Nucor reported record first-quarter steel shipments of 7.03 million short tons, up 9% year on year. Revenue increased to USD 9.5 billion, while net earnings climbed to USD 743 million.

The company said order backlogs have reached their highest level since 2021 and confirmed that construction of its new sheet mill in West Virginia remains on track for start-up in early 2027.

US Steel announced plans to restart its tin products mill at Gary Works in Indiana in 2027, citing expectations of stronger protection against unfair imports and growing demand for domestic supply.

Meanwhile, Marubeni-Itochu Steel America is investing USD 40 million in a new flat steel processing facility adjacent to US Steel’s Big River Steel Works in Arkansas.

China tightens capacity replacement rules

In Asia, China has introduced revised steel capacity replacement regulations aimed at further reducing overcapacity and accelerating decarbonisation.

Under the new rules, new steelmaking projects will generally require a replacement ratio of 1.5 tonnes of existing capacity for every new tonne installed. The regulations also tighten environmental requirements and restrict capacity growth in key pollution-control regions.

According to MEPS, the measures reflect Beijing’s continued efforts to curb excess production and support a transition toward more efficient and lower-emission steelmaking technologies.

Global industry remains focused on competitiveness

The latest developments underline how steel producers worldwide are adapting to changing trade regimes, decarbonisation requirements and evolving market conditions.

While European producers are benefiting from stronger trade protection, North American companies continue to invest in new capacity, and Asian steelmakers face increasingly strict regulatory requirements as governments seek to balance industrial competitiveness with sustainability objectives.

Source: MEPS, Photo: Fotolia