24 March 2026 – European stainless steel alloy surcharges have increased significantly for April 2026, rising by up to 5.4%. And an Indian steel giant has launched a major expansion of crude steel capacity by an additional 18 million tons per year.
Indian Steel Giant Expands by Another 18 MMT of Crude Steel Capacity
While European steel producers continue to make promises and policymakers allow themselves to be led around by the nose, ArcelorMittal Nippon Steel India has taken concrete action.
Yesterday marked the official launch of an 18 million ton capacity expansion in Andhra Pradesh. The first phase of the mega steel plant is scheduled for completion by 2028.
Capacity Set to More Than Triple
Together with planned and already ongoing expansions in Gujarat (24 MMT per year) and Odisha (24 MMT per year), the group is expected to reach a total capacity of more than 66 million tons annually in the coming years.
This would mean that the group – which includes Europe’s largest steel producer – would bear a significant, if not the largest, share of the responsibility for the build-up of ‘overcapacity’ in global steel production, a situation that has come under fierce criticism within the EU.
In the long term, total capacity is planned to increase to up to 100 million tons per year.
European Stainless Steel Alloy Surcharges Rise Sharply
European stainless steel alloy surcharges have, as expected, increased again for April 2026.
Grade 1.4301 (304) rose by approximately 3.6%, despite nickel prices at the LME having declined slightly-by just under 1% compared to the previous month.
Ferrochrome as the Main Cost Driver
The main driver behind rising alloy surcharges has been the price of ferrochrome, which has increased significantly due to higher procurement costs, elevated energy prices, and the CO2 tax CBAM, in force since 1 January 2026
This is particularly evident in chrome-based stainless steel. Grade 1.4016 (430) increased by more than 5.4% compared to the previous month.
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