The paper is concerned with the nucleation, growth and coalescence of microdefects in the form of voids in S235JR steel. The material is known to be one of the basic steel grades commonly used in the construction industry. The theory and methods of damage mechanics were applied to determine and describe the failure mechanisms that occur when the material undergoes deformation. Until now, engineers have generally employed the Gurson-Tvergaard- Needleman model. This material model based on damage mechanics is well suited to define and analyze failure processes taking place in the microstructure of S235JR steel. It is particularly important to determine the critical void volume fraction fc, which is one of the basic parameters of the Gurson-Tvergaard-Needleman material model. As the critical void volume fraction fc refers to the failure stage, it is determined from the data collected for the void coalescence phase. A case of multi-axial stresses is considered taking into account the effects of spatial stress state. In this study, the parameter of stress triaxiality η was used to describe the failure phenomena. Cylindrical tensile specimens with a circumferential notch were analysed to obtain low values of initial stress triaxiality (η = 0.556 of the range) in order to determine the critical void volume fraction fc. It is essential to emphasize how unique the method applied is and how different it is from the other more common methods involving parameter calibration, i.e. curve-fitting methods. The critical void volume fraction fc at void coalescence was established through digital image analysis of surfaces of S235JR steel, which involved studying real, physical results obtained directly from the material tested.