Published by Global Banking & Finance Review®
Posted on July 31, 2025
3 min readLast updated: January 22, 2026
Add as preferred source on GoogleEuropean steelmakers face demand and pricing pressures due to US tariffs and weak market conditions, impacting earnings forecasts and market outlook.
By Anna Peverieri and Jagoda Darlak
(Reuters) -ArcelorMittal, Outokumpu and Aperam warned of mounting pressures from tariffs and weak demand, as the outlook for European steelmakers worsened following a mixed second quarter.
ArcelorMittal's quarterly core earnings were broadly in line with market expectations, while Outokumpu and Aperam beat analysts' estimates but projected lower earnings for the third quarter. Their shares fell between 4% and 5% by 1100 GMT.
They followed peers Acerinox and SSAB, which last week missed expectations and flagged that trade tensions and economic softness were dragging on the sector.
The results paint a cautious picture for the rest of the year. While quarterly earnings held up better than feared, steelmakers are bracing for falling demand and price volatility as U.S. tariffs distort trade flows and feed a weakening sentiment.
The companies have warned that U.S. President Donald Trump's 50% tariffs on steel imports could divert U.S.-bound shipments towards Europe, leading to steeper price declines in a region already struggling with competition from cheaper Asian imports.
EUROPEAN STEEL SECTOR OUTLOOK
ArcelorMittal, the world's second-largest steelmaker, stood out with its relatively more resilient forecast for Europe, while Outokumpu and Aperam struck a more downbeat tone similar to Acerinox and SSAB a week earlier.
Outokumpu sees continued price pressure and sluggish demand on the continent. Its CEO Kati ter Horst said low-priced imports from Asia and elevated energy costs would continue to weigh on the stainless steel maker.
"There is no real strong demand out there in the market," Outokumpu CFO Marc-Simon Schaar told Reuters, after the Finnish company projected a 5-15% drop in stainless steel deliveries for the third quarter, mainly due to weakness in Europe.
Aperam also flagged high uncertainty for the rest of 2025 that would likely lead to a sequential profit decline.
"In Europe demand remains persistently depressed," Aperam CEO Timoteo Di Maulo said.
However, ArcelorMittal is seeing more resilience in European demand than in other regions, aided by its exposure to the automotive sector, which CFO Genuino Christino said was holding up relatively well despite a slowdown in global car demand.
The divergence between ArcelorMittal's relatively upbeat tone on Europe and its peers' gloomier views underscores the uneven dynamics across subsectors and geographies.
Luxembourg-based ArcelorMittal lowered its forecast for global steel demand growth outside China to between 1.5% and 2.5%, highlighting slower activity in the U.S., though it also trimmed down its estimate for Europe.
It also raised its estimate of the financial impact from U.S. tariffs and now expects them to reduce its core profit by $150 million this year.
(Reporting by Anna Peverieri and Jagoda Darłak in Gdansk; Additional reporting by Javi West and Marta Frackowiak in Gdansk; Editing by Milla Nissi-Prussak and Matt Scuffham)
Demand refers to the quantity of a product or service that consumers are willing and able to purchase at various prices during a given time period.
Core earnings are a company's profits derived from its primary business operations, excluding any income from non-operational activities or one-time events.
Price volatility refers to the degree of variation in the price of a financial asset over time, indicating how much the price fluctuates.
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