EU stainless steel producers strengthen their positions despite geopolitical instability

Despite geopolitical instability and pressure from imports, leading European stainless steel producers Acerinox and Outokumpu have shown improved operating results in the first quarter of 2025.

Acerinox increased its production to 512 kt, up 29% compared to Q4 2024. Revenue amounted to €1.6 billion, up 17% quarter-on-quarter and 5% year-on-year. EBITDA increased to €102 million compared to €91 million in the fourth quarter.

The company continues to implement its strategy, including the integration of Haynes International, a US-based alloy producer. Despite the high risks, Acerinox expects EBITDA in the second quarter to be higher than in the first. The company also expects synergies between Haynes, VDM and NAS to reach $75 million (instead of the previous $71 million).

“The uncertainty caused by tariff policy and the extremely challenging macroeconomic situation has slowed down the markets: they are looking for more predictability and delaying the recovery in demand. Acerinox is focusing on what is within our control and continues to execute on our strategic plan,” said Acerinox CEO Bernardo Velasquez.

Outokumpu increased its stainless steel shipments to 470 thousand tons in the first quarter (+11% q/q), and its adjusted EBITDA reached €49 million (€38 million in Q4). The growth was driven by cost optimization, strong results from Ferrochrome (€43 million EBITDA) and efficient relocation of production to Germany. At the same time, the strike in Finland resulted in losses of €15 million.

For the second quarter, Outokumpu expects shipments to grow by 10% and EBITDA to remain at or above the level of the first quarter. At the same time, planned repairs at the ferrochrome production facility may have a negative impact of up to €10 million. The company also expects potential gains from changes in the cost of raw materials.

Both companies are increasing their focus on raw material security and decarbonization. In particular, Outokumpu has signed a 10-year supply agreement for low-carbon molybdenum.

As GMK Center reported earlier, global stainless steel production in 2024 increased by 7% compared to 2023 to 62.621 million tons. Over the year, Europe, including Ukraine, increased stainless steel production by 1.5% y/y – to 6.09 million tons. The United States increased by 6.9% y/y over 12 months to 1.95 million tons.