Global steel majors report mixed trends in crude steel production in Jan-Mar'26

• ArcelorMittal's crude steel production drops 10% y-o-y, Nippon Steel's surges 40%
  
  
• Nippon Steel, JFE, POSCO report lower profits amid weak steel demand, rising costs
  
  

Global steelmakers reported mixed production trends and weaker profitability in January-March 2026 as subdued steel demand, elevated raw material costs, and continued pressure from low-priced Chinese exports weighed on earnings. However, companies continued to push ahead with long-term expansion plans in India, the United States, and other growth markets.

Among major producers, ArcelorMittal, Nippon Steel, and JFE Holdings reported lower crude steel output y-o-y, while POSCO Holdings posted a modest increase.

Crude steel production trends remain mixed in Jan-Mar'26

Nippon Steel's consolidated volumes surge y-o-y

Nippon Steel's consolidated crude steel production increased by 1.3% q-o-q to 13.87 million tonnes (mnt) in January-March 2026 from 13.68 mnt in October-December 2025, whereas on a y-o-y basis, output increased by 39.3% from 9.89 mnt in January-March 2025.

Moreover, on a financial year basis, the same surged by 27.5% y-o-y to 50.48 mnt in FY'26 (April 2025-March 2026) against 39.59 mnt in FY'25.

The sharp increase in consolidated volumes reflects the impact of Nippon Steel's continued expansion overseas amid subdued market conditions in Japan.

Non-consolidated crude steel production fell by 1% to 8.51 mnt in January-March 2026 compared with 8.60 mnt in October-December 2025 and increased by a minor 0.11% y-o-y from 8.50 mnt in January-March 2025. Similarly, on a financial year basis, crude steel production stood at around 33.88 mnt in FY'26, edging down by around 1% y-o-y from 34.85 mnt in FY'25.

In its financial results briefing, Nippon Steel stated that "except for certain sectors such as AI, electric power, and defence, base demand in the manufacturing and construction industries in Japan and overseas is sluggish, and the global steel business environment remains in a critical situation".

However, the company strengthened its business structure by enhancing synergies through domestic steel group reorganisation, expanding overseas operations via the US Steel acquisition and India capacity growth, upgrading raw material operations beyond procurement, and integrating distribution activities into its core business portfolio.

JFE Holdings reports slight dip y-o-y

JFE Holdings' consolidated crude steel output stood at around 5.54 mnt in January-March 2026, falling by 0.9% q-o-q from 5.59 mnt in October-December 2025 and 2.2% y-o-y from 5.67 mnt in January-March 2025.

On a financial year basis, crude steel output in FY'26 stood at 22.55 mnt, a drop of 2.8% y-o-y compared with 23.20 mnt in the previous year FY'25.

Furthermore, non-consolidated crude steel output stood at around 5.25 mnt in January-March 2026, down by 1.3% q-o-q compared with 5.32 mnt in October-December 2025 and by 2.5% y-o-y from 5.39 mnt in January-March 2025.

Moreover, on a yearly basis, crude steel output in FY'26 stood at 21.37 mnt, dipping by 2% from 21.95 mnt in FY'25.

Despite the continued challenging business environment, the company remains committed to the strategies outlined in "JFE Vision 2035" and the "Eighth Medium-term Business Plan." In Japan, it is restructuring domestic production bases into "mother steel mills" focused on technological development and talent cultivation, with the aim of building a leaner and more resilient production structure. Overseas, the company is pursuing expansion through strategic local partnerships in high-growth markets, particularly in India and other regions.

POSCO Holdings posts minor uptick y-o-y

POSCO Holdings' crude steel production stood at around 8.81 mnt in January-March 2026, up marginally by 1% q-o-q from 8.72 mnt in October-December 2025 and by 1.8% against 8.65 mnt in January-March 2025.

POSCO entered into a joint venture agreement with JSW in India to develop an integrated steel mill. The partnership aims to establish a local production base beyond its export-driven model and capitalise on the growing demand for high-grade steel in India.

ArcelorMittal's output falls 10% y-o-y

ArcelorMittal's crude steel production in January-March 2026 stood at 13.3 mnt, marking an increase of 3% q-o-q against 12.8 mnt in October-December 2025. However, y-o-y, output decreased by 10% against 14.8 mnt in January-March 2025.

The company said that the coming year will be a key year for its strategic growth projects, reflecting opportunities across multiple growth areas. The company's investments, expected to generate an additional EBITDA of around $1.8 billion, include the expansion of AM/NS India's Hazira plant, ramp-up of mining operations in Liberia, commissioning of the new electric arc furnace (EAF) at Calvert to full capacity, and several energy transition-related initiatives.

Financial performance remains uneven across steel majors

Despite higher revenues y-o-y and q-o-q, the financial performance of major global steelmakers remained mixed in January-March 2026, reflecting uneven regional demand conditions and persistent margin pressure from high raw material costs and Chinese steel exports.

Nippon Steel's consolidated revenue for FY'26 (April 2025-March 2026) stood at JPY 10,063.2 billion ($63.49 billion), increasing by 15.7% y-o-y compared with JPY 8,695.5 billion ($54.86 billion) in FY'24.

However, the company's operating profit stood at around JPY 242.9 billion ($1.53 billion) in FY'26, down by 56% against JPY 547.9 billion ($3.45 billion) in FY'25.

Nippon Steel's operating profit declined sharply in FY'26 due to weak global steel demand, excess low-priced Chinese steel exports, and intense market competition, despite higher revenue growth supported by price revisions and overseas business expansion.

JFE Holdings' revenue reached JPY 4539.2 billion ($28.63 billion) in FY'26 (April 2025-March 2026), declining by 6.5% from JPY 4859.6 billion ($30.66 billion) in FY'25.

Revenue declined amid deteriorating domestic and overseas steel market conditions, along with rising raw material costs and global trade uncertainties.

POSCO's operating profit in January-March 2026 stood at KRW 345 billion ($0.22 billion), down by 3.5 % q-o-q from KRW 254 billion ($0.16 billion) in October-December 2025. Operating profits dropped amid rising raw material costs and freight costs.

ArcelorMittal's operating income in January-March 2026 stood at $0.753 billion, rising sharply by around 130% q-o-q from $0.327 billion in October-December 2025. This q-o-q rise was primarily driven by higher average steel prices and improved q-o-q performance in the North American segment, along with the absence of exceptional charges recorded in the previous quarter.

The company said that business fundamentals improved over the past three months, supported by a favourable structural reset in the European policy environment, including the implementation of the Carbon Border Adjustment Mechanism (CBAM) and the revised tariff rate quota (TRQ), which is expected to significantly reduce steel imports into Europe from 1 July 2026.

Hyundai Steel's operating profit declined 63% q-o-q to KRW 16 billion ($0.01 billion) in January-March 2026 from KRW 43 billion ($0.02 billion) in October-December 2025.

Hyundai Steel's profits declined despite higher sales, pressured by foreign exchange volatility, elevated raw material costs, and challenging market conditions in Q1CY'26.

Outlook

Global steelmakers are likely to stay cautious in the near term as weak demand, rising raw material costs, and pressure from cheaper Chinese steel continue to impact margins. While some companies saw a slight recovery in quarterly production and revenues, profitability remained under stress, keeping the overall market sentiment subdued in January-March 2026.