【SMM Steel】US raises alarm over global steel production overcapacity

Indian steelmaker JSW Steel plans to inject over US$500 million into its US operations to modernise its facilities in Mingo Junction, Ohio, and Baytown, Texas, attributing this investment climate to the Trump administration’s policies. In Ohio, its US$165 million project has introduced vacuum degassing units and advanced slab continuous casting machines, enabling the domestic production of 12-inch steel slabs and thereby eliminating reliance on imports from countries such as Brazil. Meanwhile, the Baytown steel plate and pipe mill is undergoing a US$110 million modernisation programme, with production expected to commence on 1 October 2026.

The EU implemented a new steel import quota system on July 1, slashing Taiwan's galvanized product allocation by roughly 70% from around 400,000 tonnes to just over 130,000 tonnes. This severely impacts major domestic producers like Yieh Phui, Sheng Yu, and Prosperity Tieh. Lacking FTAs or reciprocal mechanisms, Taiwanese mills face fierce external price competition and rising domestic import threats, as displaced steel from Asian peers facing similar cuts may flood Taiwan. To mitigate losses, manufacturers plan to redirect shipments to non-EU markets such as the UK, Canada, and the US. Meanwhile, mills are pursuing product upgrades and urging the government to implement CNS product certifications to curb import risks.

[SMM Steel] Market feedback indicates that currently, for September shipment SAE1006 with specification 3.0*1250*C HRC FOB price, the selling price is $487/mt, and the shipping port is Jingtang Port.