Podcast: Do high prices boost the profits of steel companies?
Not all major global steel producers used high steel prices to generate high profits in the first quarter of 2026, a study conducted for the MEPs' latest podcast, "Talking about Steel."
In the first five months of this year, the average global price of hot-rolled steel increased by 13%, while the price of rebar increased by about 10% over the same period. However, the analysis shows that the profitability of steel mills in the period from January to March varied depending on the region and the direction of production.
Kaye Ayub, Head of the European Deputies' Price Analysis and Forecasts Department, along with Laura Hodges, a steel market analyst, and Tom Sharpe, editor-in-chief, examined the profitability of the largest steel producers in the United States, Europe, and Asia in the latest issue of the Speaking of Steel program.
See the article "Do high prices increase the profits of steel companies?". The episode is now on YouTube https://www.youtube.com/watch?v=bdjuKQAsnVI , Podcasts on Spotify and Apple https://podcasts.apple.com/us/podcast/are-high-prices-boosting-steelmakers-profits/id1756464954?i=1000772019727 .
Among the topics discussed in the section "High prices increase profits of steel companies?" the podcast episode "Talking about Steel" is:
- Profit of large steel companies in the USA, Europe and Asia for the first quarter
- Raw material prices and the prospect of rising production costs
- Strengthening trade barriers and their impact on procurement
- How changes in EU market forecasts led to the suspension of acquisitions and long-term investments
- Against the background of continued low demand
Sharing her analysis of the financial performance of U.
S. steel companies for the first quarter in a new podcast, Hodges said: High prices help steel companies increase their profitability, but overall I would say they are not as good as I thought.
"I would expect that, given that the prices for[hot-rolled coils]are almost at the level of 1,100 USD per short ton, the profit will be slightly higher than it is now. One of the main reasons this doesn't happen is the cost."
According to Hodges, the profitability of American steel companies varies significantly between manufacturers of electric steelmaking and blast furnaces.
Commenting on the performance of European manufacturers, Ayub said that "profitability is recovering much faster than demand." Steel companies posted mixed financial results in the first quarter and hope to boost sales as tougher trade protections in both the EU and the UK boost demand for domestically produced steel.
Meanwhile, Hodges said higher steel prices were "necessary" in East Asia as the region's producers sought to return to profitability.