New trade restrictions improve prospects for European factories
The largest steel producers in Europe adjusted their business strategies after they showed improved sales forecasts in their financial reports for the first quarter.
ArcelorMittal, thyssenkrupp and Salzgitter reported that lower raw materials and energy costs combined with higher steel prices improved their financial performance in the three months to March 31, despite growing concerns about the effects of the Middle East conflict. As for the costs of steel mills, they all expressed more optimistic expectations for sales in the domestic market in the second half of 2018-2026.
Reduced competition from imports as a result of lower tariff quotas and the introduction of new tariffs, 50% higher than quotas, due to take effect in the EU on July 1, improved sentiment among manufacturers. ArcelorMittal said that in combination with CBAM, the measures taken will allow it to increase capacity utilization and increase profitability. The report for the first quarter added that this more than offsets the expected effects of the conflict in the Middle East.
- This article first appeared in the May issue of the European Steel Review from MEPS / / /gb/en/products/European-steel-review. The monthly review contains steel prices, indexes, comments, and forecasts for 12 months, covering Belgium, France, Germany, Italy, Spain, and the United Kingdom. Contact the MEPs for detailed information on how to subscribe.
ArcelorMittal reported steel shipments of 12.8 million tons in the first quarter, down 5.9% from the same period last year. However, the increase in steel prices led to sales of 15.46 billion US dollars (13.39 billion euros) in the reporting period, which is more than 4% more than in the same period last year, which increased EBITDA by 14.9% to 131 US dollars per ton.
The Salzgitter steel division has achieved the most significant performance improvement among the three steel companies. The division's EBITDA more than doubled to 80 million euros from 39 million euros in the first quarter of 2025. Ion's crude steel production increased by just over 1%, to 1.57 million tons. The increased profitability resulted in a pre-tax profit of 24 million euros, compared with a loss of 23 million euros in the first quarter of last year.
The number of Salzgitter core staff decreased by 423 to 22,060 during the reporting period, reflecting ongoing efficiency initiatives. Thyssenkrupp continues to pursue a broader rationalization of its operations. The plan, announced last December, calls for a reduction in the workforce of about 40% (11,000 jobs).