(HSV VIETNAM GROUP) - EU steel industry giants such as ArcelorMittal, Outokumpu and Aperam have just warned of growing pressures from new tariffs and weakening demand, in the context of the outlook for the European steel industry increasingly deteriorating after volatile second quarter business results.
ArcelorMittal's core profit for the quarter was generally in line with market expectations, while Outokumpu and Aperam beat analysts' forecasts but gave lower profit outlooks for the third quarter, according to Reuters.
Reuters said this development followed disappointing results of rivals Acerinox and SSAB last week, when these two businesses also said trade tensions and economic weakness were putting pressure on the entire industry.
The business numbers show a cautious picture for the rest of the year. Although last quarter's profits were better than initially feared, steelmakers are bracing for the possibility of falling demand and sharp price fluctuations, in the context of US tariffs distorting trade flows and making market sentiment more negative.
Businesses also warn that the 50% tariff that US President Donald Trump imposed on imported steel could cause the amount of capital goods exported to the US to redirect to Europe, causing steel prices in this region to fall further - while the capital market is already facing fierce competition from cheap Asian steel.
Of the three businesses, ArcelorMittal – the world's second largest steelmaker – has a slightly more optimistic forecast for the European market, while Outokumpu and Aperam gave similarly pessimistic assessments to Acerinox and SSAB a week earlier.
Outokumpu forecasts that price pressure and tepid demand will continue in Europe. Chief Executive Officer Katiter Horst said cheap stainless steel shipments from Asia and high energy costs would continue to weigh on the business. “There is no real strong demand in the market right now,” Chief Financial Officer Marc-Simon Schaar told Reuters, after the Finnish company expected third-quarter stainless steel deliveries to fall 5–15%, mainly due to weak European markets.
Aperam also warned of high levels of uncertainty for the rest of 2025, likely leading to a quarter-on-quarter decline in profits. “In Europe, low demand will persist,” said CEO Timoteo Di Maulo.
However, ArcelorMittal recorded more stable consumption in Europe than in other regions, partly thanks to its business in the automotive industry. Chief Financial Officer Genuino Christino said demand from the auto industry remained relatively good, despite the general downward trend in the global vehicle market.
The difference in opinion between ArcelorMittal and its competitors reflects the uneven situation across segments and geographies in the industry.
The Luxembourg-based group also lowered its global steel demand growth forecast (excluding China) to 1.5% to 2.5%, due to slowing operations in the US. At the same time, the company also revised down its growth estimate in Europe.
In addition, ArcelorMittal raised its estimate of the financial impact of the US tax, now forecasting it will reduce the group's core profit by about $150 million this year.
Ha Diem HSV