In yesterday's [SMM Analysis] EU Steel Tariff Wall Doubles to 50%: Reconstructing the New Quota System & In-Depth Analysis of 1A HRC, SMM deeply analyzed the brutal allocation logic of the EU's new 18.35 million tonnes quota. When the "50% tariff wall" and the "melting and pouring" rules completely block traditional tax-free export paths, the global steel supply chain is undergoing a forced reshuffle. Today, we shift our perspective to the ripple effects and macro-level forecasts of this storm.

Australia's Centaurus Metals Ltd. confirmed its capability to produce direct reduction (DR) grade pellet feed at its Jambreiro Project in Minas Gerais, Brazil. A pilot plant successfully produced 0.5 tons of concentrate featuring an average 68.7% iron content, with low impurities including 1.45% silica, 0.48% alumina, and 0.02% phosphorus. The company is evaluating the production of a DR grade pellet with 68% iron and combined silica and alumina under 2%. The development positions Centaurus to supply premium feedstock for electric arc furnaces (EAF), offering steelmakers a critical avenue to lower their overall carbon footprint compared to traditional blast furnace feeds.

Nippon Steel has submitted plans to build an electric arc furnace (EAF) at its Košice steelworks in Slovakia. Construction is expected to start in 2027, with operations beginning by 2030. The plant's overall annual steelmaking capacity will remain at 4.5 million metric tons, but the new facility is projected to cut carbon monoxide emissions by 56%.

[SMM Steel] Austrian steelmaker voestalpine finalized expansion plans for its greentec steel program, targeting a complete transition to electrified steel production at its Donawitz plant by 2030. The company will debut a new electric arc furnace (EAF) powered by green electricity in 2027, operating alongside traditional blast furnaces until decommissioning one unit in 2029. An approved EUR 100 million expansion budget will upgrade power systems, add a secondary metallurgy line, and improve scrap logistics by 2030, pending final funding approvals. This second stage will lift annual CO2-reduced steel capacity from 850000 tonnes in 2027 to 1.5 million tonnes by 2030, cutting site emissions by over 90% from 2019 levels. The transformation will close existing blast furnaces and the sinter plant, indirectly securing more than 5000 regional jobs. Core equipment installations begin in fall 2026.

【SMM Steel】Nippon Steel is planning to invest in an electric arc furnace (EAF) at its steelworks in Košice, Slovakia, as part of its strategy to reduce carbon emissions and promote greener steel production. The project is expected to cut reliance on traditional coal-intensive steelmaking routes with high CO2 emissions. The investment aligns with the broader transition of the European steel industry toward lower-emission technologies. The EAF adoption is also expected to improve energy efficiency at the Košice plant and strengthen its competitiveness amid increasingly stringent environmental regulations.

Nippon Steel has submitted plans to Slovak authorities to build an electric arc furnace at its Košice steelworks, with annual capacity estimated at 1.5–2.1 million tonnes. The project would replace part of the site’s coal-based production with lower-emission technology, while total steelmaking capacity is expected to remain at 4.5 million tonnes per year. Construction may start in 2027, with operations targeted for 2030.