U.S. Steel Manufacturers Plan Near-Term Capacity Additions

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Written by Will Ploch, Assistant Editor-in-Chief for IIR News Intelligence (Sugar Land, Texas)

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Summary

Steel manufacturers across the U.S. are plotting more than $6 billion worth of capital-spending projects that are set to kick off in the second quarter of 2026.

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A Changing Landscape

Top players in the U.S. steel-manufacturing sector are changing with the times, adopting newer technology and keeping their eyes on operational efficiencies. Domestic steelmakers are plotting investments across the country, often geared toward specific clients. Industrial Info is tracking more than $6 billion worth of capital-spending projects in the U.S. steel-manufacturing sector that are set to kick off in the second quarter of 2026, the bulk of which are attributed to projects in Texas and Louisiana.

United States Steel, which was acquired by Japan's Nippon Steel last June, expects to spend more than a year performing operational improvements at two of its major facilities. The company is adding a premium thread line at its steel mill in Fairfield, Alabama, which produces about 1.6 million tons of raw steel annually, and is preparing for upgrades at its Mon Valley Works plant in Clairton, Pennsylvania, which produces about 4.3 million tons of coke annually. Both projects are expected to improve efficiency and, in the case of Mon Valley, reduce air pollution.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Plant and Project databases can learn more about these projects--including capacities, investment values and necessary equipment--from detailed reports on the Fairfield and Mon Valley projects.

The Mon Valley Works project is somewhat unique, as coke production in the U.S. has declined significantly in recent decades. According to the U.S. Energy Information Administration, the U.S. produced 10 million short tons of coke for steel manufacturing in 2025, a drop of 78% from 1980; the decline was attributed to rising steel imports and electric arc furnace (EAF) technology, a cheaper alternative that creates molten steel by melting scrap metal.

Gerdau Ameristeel North America, a subsidiary of Brazil's Gerdau S.A., is preparing to install a new EAF at its Steel Works Plant in Midlothian, Texas. The company is replacing an aging model at its 1.8 million-ton-per-year facility, where it also is preparing to rebuild or repair three walking-beam reheat furnaces. Subscribers can learn more from a plant profile and detailed reports on the electric arc furnace and reheat furnace projects.

By the Numbers

• More than $6 billion: Total value of U.S. steel-manufacturing projects set to kick off in the second quarter, according to Industrial Info
• 78%: Decline in U.S.-based coke production since 1980, according to the EIA
• 2.7 million tons per year: Proposed capacity of Hyundai's new steel mill in Louisiana

Reasons for Optimism

Hyundai Steel Company Limited expects to make progress in the coming quarter on one of its most widely anticipated projects: the development of a steel mill in Modeste, Louisiana. The company says the new plant would produce 2.7 million tons per year using direct-reduction technology, an EAF process that produces lower carbon emissions than traditional blast-furnace technology. Hyundai says the project is set for the RiverPlex MegaPark, which sits along the west bank of the Mississippi River.

Steel sheets from the plant would supply assembly lines for Hyundai Motor in Alabama and Kia (a Hyundai subsidiary) in Georgia. "We plan to supply automotive steel plates not only for Hyundai Motor and Kia's strategic models, but also to expand sales to U.S. automakers in the future," said Gang Hyun Seo, the chief executive officer of Hyundai Steel Company, at an announcement ceremony last year. Subscribers can learn more from a plant profile and a detailed project report.

Despite persistent inflation, U.S. Steel and other domestic manufacturers say President Donald Trump's 50% tariff on steel and aluminum have been encouraging for the sector. While the U.S. Supreme Court struck down most of Trump's tariffs in a February decision, its ruling did not apply to industry-specific tariffs like those on imported steel.

Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for capital-spending projects in the U.S. steel-manufacturing sector that are set to begin construction in the second quarter.

Subscribers can click here for a full list of detailed reports for projects mentioned in this article and click here for a full list of related plant profiles.

Key Takeaways

• Steelmakers are plotting investments across the U.S., often geared toward specific clients.
• EAF technology is replacing traditional blast-furnace technology nationwide.
• Domestic steelmakers continue to laud Trump's tariffs.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR News Intelligence) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 250,000 current and future projects worth $30.2 trillion (USD).