U.S. Steelmakers Prep for $1.6 Billion in 1Q Project Starts

Written by Will Ploch, Assistant Editor-in-Chief for Industrial Info Resources (Sugar Land, Texas)

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Summary

U.S. Steel and Cleveland-Cliffs are two steelmakers with major capacity additions or restarts set to begin construction in first-quarter 2026.

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Illinois Mill Set for Revival

With the dust settled after a major acquisition, U.S.-based steelmakers are preparing to expand capacity to meet rising demand. Industrial Info is tracking more than $1.6 billion worth of active and proposed steel-manufacturing projects across the U.S. that are set to begin construction in the first quarter of 2026, nearly 70% of which is attributed to projects believed by Industrial Info's researchers to have a 70% or higher likelihood of kicking off as currently scheduled.

The domestic steel-production sector heard some good news earlier this month when United States Steel Corporation (U.S. Steel) (Pittsburgh, Pennsylvania), which became a subsidiary of Nippon Steel Corporation (Tokyo, Japan) over the summer, kicked off site preparation for the restart of Furnace B at its Granite City Steel Works complex in Illinois, just across the river from St. Louis, Missouri. Furnace B was idled in 2023, after Furnace A was idled in 2019. There are no plans to restart Furnace A.

As part of its acquisition by Nippon Steel, U.S. Steel promised the U.S. government it would not close, idle or sell any production location prior to June 18, 2035, except for Granite City Works, which it agreed not to close, idle or sell before June 18, 2027. Last month, Nippon announced it would invest $11 billion across U.S. Steel's active facilities--except for Granite City Works.

The long-term viability of the complex has become a political hot potato in Illinois. "While this is good news for production on a temporary basis, we need more than short-term fixes," said U.S. Representative Nikki Budzinski, D-Springfield, in a statement addressing the restart of Furnace B. "We need a long-range commitment and investment that ensures the skilled workers of Granite City have the future and assurances they've earned."

Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Plant and Project databases can learn more about Granite City's Furnace B--including capacities, investment values and necessary equipment--from a plant profile and a detailed project report.

Some of Nippon Steel's spending on U.S. Steel will go toward a Furnace 14 at the Gary Steel Works complex in Gary, Indiana. The company is completely rebuilding the blast furnace and is adding or overhauling related equipment to extend its life. Subscribers can learn more from a plant profile and a detailed project report.

By the Numbers

• More than $1.6 billion: Value of U.S. steel-manufacturing projects set to begin construction in the first quarter of 2026
• June 18, 2027: First day when U.S. Steel's Granite City Steel Works complex could be closed or sold off
• $11 billion: How much Nippon is investing across all other U.S. Steel complexes

Cleveland-Cliffs Leads in First-Quarter Investment

Cleveland-Cliffs Incorporated (Cleveland, Ohio) accounts for more potential kickoffs in the first quarter than any other steel manufacturer. The company aims to replace two natural gas-fired, high-temperature slab reheat furnaces with four electrified induction furnaces at its Butler Steel Works complex in Butler, Pennsylvania, to improve efficiency. Cleveland-Cliffs also is proposing the addition of two electric melt furnaces at its Middletown Steel Works complex in Middletown, Ohio.

In an earnings-related conference call in October, Lourenco Goncalves, the chief executive officer of Cleveland-Cliffs, expressed relief that the Butler and Middletown projects, which had received grants from the Biden administration's Department of Energy (DOE), were not among the more than 200 projects to see their funding dropped under the new Trump administration. Subscribers can read detailed reports on the Butler and Middletown projects.

"We will proceed with the Butler project on schedule, and we will also continue to work with the DOE on the new scoping of the Middletown project, which is critically important as that blast furnace will be realigned in the next four to five years," Goncalves said in the earnings call.

Subscribers to Industrial Info's GMI Project and Plant databases 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.

Subscribers can click here for a full list of reports for active and proposed steel-manufacturing projects across the U.S. that are set to begin construction in the first quarter of 2026.

Key Takeaways

• U.S. Steel expects to revive a blast furnace at Granite City, but its long-term outlook remains uncertain.
• Nippon Steel, U.S. Steel's parent company, will not close, idle or sell any other U.S. Steel location before 2035.
• Cleveland-Cliffs continues to receive DOE support for two of its proposed capacity expansions.

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About Industrial Info Resources
Industrial Info Resources (IIR) 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) platform 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 200,000 current and future projects worth $17.8 trillion (USD).