Aug 28, 2026
Algoma Steel has started producing steel with its new electric arc furnace, while Jindal Stainless is scouting for a location for a proposed INR400 billion plant, and the European Commission has suggested antidumping duties on cold rolled flat steel imports from several countries. These developments are part of the August edition of MEPS’s monthly steelmaking capacity round-up, which compiles updates from its European, International, and Stainless Steel Reports.
Nippon Steel
Nippon Steel has lifted its earnings guidance for the 2026-27 fiscal year, buoyed by the profitability of its US Steel subsidiary. Group business profit surged 58.1% year-on-year to JPY145.5 billion in the quarter ended June 30, with US Steel contributing JPY32 billion. Domestic Japanese operations saw a year-on-year decline of JPY94 billion to JPY47.1 billion. Consolidated crude steel output rose 50.7% to 14.26 million tonnes, reflecting the US Steel acquisition. The company now forecasts full-year business profit of JPY630 billion, up 18.9%, and expects US Steel to contribute at least JPY180 billion, an increase of JPY80 billion, supported by higher US steel prices. Additionally, the six-million-tonnes-per-year hot strip mill at its Nagoya Works, commissioned in April, has begun commercial production.
SAIL and Krakatau Steel
Steel Authority of India Ltd (SAIL) and Indonesia’s Krakatau Steel are planning to invest up to USD350 million in a new stainless steel slab plant in Indonesia. The facility would have an annual capacity of 500,000 tonnes and could start production within three to four years. The companies signed a preliminary agreement in July 2026. SAIL is expected to take the entire output for processing at its Salem works in Tamil Nadu, with finished products mainly for the Indian market and some exports to Europe and the Middle East. A feasibility study is planned before finalizing ownership and investment details.
Trade Defence – Japan
Japan imposed provisional antidumping duties on hot dipped galvanised steel strip and sheet from China and South Korea starting August 8. Preliminary dumping margins range from 63.95% to 68.67% for Chinese producers and 32.49% to 42.69% for South Korean mills. The final determination deadline has been extended by four months to December 2026.
Jindal Stainless
Jindal Stainless is seeking a site in Maharashtra for a stainless steel manufacturing complex with potential annual capacity of up to four million tonnes. The company is considering an investment of up to INR400 billion in the phased project, though the full amount is not yet committed. Clarity on development plans is expected before year-end, with the first phase targeted to begin production within four years. The project would raise domestic stainless steel melting capacity to seven million tonnes. Separately, the company has confirmed capital expenditure of around INR26 billion for the current financial year, covering downstream expansion and improvements.
Qinjin New Materials Group
Inner Mongolia-based Qinjin New Materials Group has commissioned a new hot rolled stainless steel pickling line at Naiman Banner Industrial Park. The line produced its first qualified coils this month, completing an integrated production chain from ferroalloys to pickling. The company also plans to bring additional low nickel stainless steel production lines online. The wider project involves a planned investment of USD3 billion in its integrated nickel-based stainless steel complex.
Salzgitter Flachstahl
Salzgitter Flachstahl has started construction of a new walking beam furnace at its hot strip mill in Salzgitter, Germany, following a groundbreaking ceremony in July 2026. The furnace will improve slab heating efficiency, support stable production, and reduce emissions. Commissioning is scheduled for 2028. The project is part of an investment worth at least EUR100 million, including a waste heat recovery system. Salzgitter expects energy consumption for slab heating to drop by up to 30%, with future hydrogen use possible. Tenova Italimpianti will supply the furnace technology, while Strabag is constructing the furnace hall and foundations.
HKM
Huttenwerke Krupp Mannesmann (HKM) has provided details on its planned electric arc furnace following Salzgitter’s acquisition of the Duisburg-based slab producer from thyssenkrupp Steel and Vallourec. Tenova will supply, construct, and commission the furnace and associated equipment. The unit will have an annual capacity of up to 2.5 million tonnes, with planned output around two million tonnes. Salzgitter said the EAF will be Germany’s largest and the second largest in the European Union. The continuously fed furnace will use steel scrap and DRI, with waste heat preheating the scrap. Work begins in August 2026, with completion scheduled for 2029. The German government will provide EUR200 million in funding.
Trade Defence – EU
The European Commission has proposed antidumping duties of 5.6-28% on cold rolled flat steel imports from India, Japan, Taiwan, Turkey, and Vietnam. Proposed rates are 9.5% for India, 28% for Japan, and 16% for Vietnam. Taiwanese exporters would face 20.7% or 27%, while Turkish suppliers would face 5.6% to 9.7%. Definitive measures are expected by November 2026. The Commission also proposed not applying duties retroactively to registered imports because no provisional measures were imposed, so the legal conditions for retroactive collection were not met.
Algoma Steel
Algoma Steel expects to produce the first steel from its second EAF at Sault Ste. Marie, Canada, in the third quarter of 2026. Plate shipments reached a record 125,000 short tons in quarter two, with all liquid steel production from its first EAF, commissioned in mid-2025. However, quarterly revenue fell 54.6% year-on-year to CAD267.5 million, as total shipments declined 61.6% to 181,473 short tons in the April-June period, reflecting the transition away from blast furnace production and reduced US sales due to 50% Section 232 tariffs. Algoma targets an annualised output rate of 1.5-2.0 million short tons by end-2027, entirely from EAF-based production.
Stainless Steel
Global stainless steel melt shop production increased 7.6% year-on-year to 17.24 million tonnes in quarter two of 2026, according to worldstainless. Chinese steelmakers produced 11.22 million tonnes, up 9.7%, accounting for almost two-thirds of global output. Rest of Asia increased 5.8% to 3.64 million tonnes. US production rose 4.1% to 582,000 tonnes, while EU crude steel output increased 0.5% to 1.50 million tonnes. Combined output from Brazil, Russia, South Africa, Ukraine, and the UK declined 1.0% to 292,000 tonnes. Global crude stainless steel production rose 5.0% year-on-year in the first half of 2026, reaching 32.96 million tonnes.
