MEPS's June 2024 global steel production and capacity round-up

Major European steel mill sales and acquisitions, strike action updates and new capacity developments in the US and Asia all features in MEPS International’s June global production and capacity round-up.

The market insight compiled below was first published for MEPS subscribers in this month’s editions of the European Steel Review , International Steel Review and Stainless Steel Review publications.

Visit the MEPS website for details of how to subscribe to the monthly reports, which provide subscribers with steel prices, indices, market commentary and forecasts.

Europe

EU safeguard measures

The European Commission has extended its import safeguard duties to June 2026.

It is the final time that the Commission can extend the measures. By the end of June 2026, they will have been in place for the maximum eight-year period permitted under WTO rules. The measures’ free-of-tariff quota tonnages will continue to be increased by 1% annually.

Among changes made by the commission, as part of the extension, are new 15% caps on individual countries’ use of the EU import safeguard measures’ “other countries” quarterly quota for hot rolled coil and wire rod. These apply from July 1. Analysis of the new 15% quota cap's implications can be found on the MEPS website.

The EU safeguard measures applied to stainless steel products remain largely unchanged. However, the list of developing countries has also undergone minor amendments. Imports from Indonesia and Malaysia will be removed from Category 9, Stainless Cold Rolled Sheets and Strips. This removal of tariffs follows a significant reduction in imports of this material from the two countries.

Chinese imports will be excluded from measures for Category 15, Stainless Wire Rod. Chinese material continues to be subject to EU antidumping measures.

Marcegaglia

Marcegaglia Group has acquired the Ascometal steel plant in Fos-sur-Mer, near Marseille, France.

The Italian company plans to invest approximately EUR600 million in modernising the facility. Its plans include the installation of an EAF, a continuous slab caster and a hot rolling mill.

The revamped plant, scheduled to start operations by mid-2027, will have an annual capacity of 1.6 to two million tonnes, meeting about 30% of Marcegaglia's steel requirements.

Marcegaglia said that its acquisition of the Fos-sur-Mer plant aligns with its strategy to integrate its value chain and focus on sustainable production methods.

Liberty Steel

Liberty Steel Group is conducting a strategic review of its downstream operations in Western Europe.

The review will include its sites in Liège in Belgium, Dudelange in Luxembourg, and Piombino in Italy. It will explore potential strategic partnerships, co-investments, and divestments.

The Liberty sites included in the process have a combined annual rolling capacity of over 2.5 million tonnes.

News of Liberty’s operational review follows recent announcements about the potential mothballing of its merchant bar facility in Scunthorpe, in the United Kingdom, and the sale of its plant in Ostrava, Czechia.

Tata Steel Nederland

Tata Steel Nederland is progressing with its plan to decarbonise the IJmuiden facility.

The steelmaker has awarded contracts for the construction of a new direct reduced iron (DRI) plant, with a capacity of 2.5 million tonnes per year, as well as an electric arc furnace (EAF). Secondary metallurgy facilities, including ladle furnaces and RH vacuum degassers, will also be installed.

The new equipment is expected to commence operations as early as 2030, replacing one of the two remaining blast furnaces currently in use at the site. Tata Steel will start decommissioning the site's remaining blast furnace once the new facilities are operational.

Tata Steel UK

Around 1,500 Unite union workers at the Tata Steel UK plant in Port Talbot, Wales, will now work to rule and observe an overtime ban.

The action follows an April union vote in favour of industrial action against the company's plans to decommission the site’s two blast furnaces by the end of September. They will be replaced with a new EAF.

Tata Steel UK recently signed an agreement with the UK electricity supplier National Grid to build the infrastructure required to power the 3.2 million tonnes per year capacity EAF by the end of 2027.

Acerinox

Stainless steel production will resume at Acerinox’s Los Barrios plant after workers voted to end their industrial action after 136 days of strikes.

Around 60% of the Cádiz facility’s 1,800 unionised workers indicated their agreement with the terms of a new employment contract on June 20. A statement issued by the steelmaker to local press indicated that activity at the plant would start on the afternoon shift of the following day, June 21.

The five-year agreement agreed by Acerinox workers extends to 2027 and will provide a pay rise of almost 13% over that period. It also maintains the plant’s five work shifts without loss of employment. Nonetheless, negotiations will soon begin on an agreement to reintroduce staff to work progressively. Acerinox had previously proposed a move to three shifts.

North America

US Steel

US Steel has held an opening ceremony for the new USD150 million iron ore pelleting plant at its Keetac mine, in Minnesota.

The new facility has an annual production capacity of up to 4.5 million short tons of blast furnace and DR-grade pellets. It will supply pellets to both US Steel mills and third-party steel producers.

Asia

Indonesia Hongwang

Indonesia Hongwang confirms that it is suspending production at its stainless steel cold rolling mill for a minimum of two months.

The suspension has been prompted by poor domestic demand and a lack of export opportunities, due to increased trade defence measures, which have led to a slowdown in sales.

The plant, opened in January 2023, is a joint operation between China’s Tsingshan Group and Hongwang Group. It has an annual production capacity of up to 700,000 tonnes of 300 series cold rolled coil.

Trade defence measures

Officials in South Korea have launched an expiry review of antidumping duties applied to hot and cold rolled stainless sheets and strips imported from China, Indonesia and Taiwan.

The investigation, which follows the receipt of a complaint from Posco and is due to be concluded within six months, will examine import levels throughout 2023.

Current antidumping duty rates, ranging between 7.17% and 25.82%, have been in place since September 2021.

A separate review of cold rolled stainless steel material sourced from Vietnam is also underway.

Baosteel Zhanjiang

China's Baosteel Zhanjiang is installing a new two-strand continuous slab caster for its plant in Guangdong province.

The equipment will have an annual output of 3.5 million tonnes. It will produce slabs with thicknesses ranging from 300 to 450mm and widths between 1,600 and 2,700mm.

Steel from the facility will supply heavy-gauge sectors such as the shipbuilding and wind turbine industries.

Ma Steel Group

Ma Steel Group, part of the China Baowu Steel Group, has started construction of a new hot dip galvanising line at its facility in Ma'anshan, Anhui province.

The new equipment will be capable of processing up to 450,000 tonnes of high-strength coated coil for the automotive sector. Commissioning is scheduled for the 2025 year-end.

Dongkuk Steel

Rebar producer Dongkuk Steel will soon start work on the modernisation of one of two EAFs operating at its Incheon plant in South Korea.

The project involves the installation of a new off-gas sensor unit, with real-time monitoring and control capabilities. The company has also confirmed that it is now operating the furnaces only at night to reduce costs.

Chiyoda Steel

Japanese steelmaker Chiyoda Steel has contracted Danieli to revamp its Ayase plant in Tokyo.

The project includes the installation of a new ladle furnace and caster, along with improvements to the plant’s existing rolling mill. These upgrades will enable Chiyoda Steel to produce up to 430,000 tonnes of rebar per year, ranging from 10 to 38 mm in diameter.