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SSAB Q1 Operating Profit Drops 57% Amid Weak Market Conditions and Tariffs.
ByAinvest
Tuesday, Apr 29, 2025 2:13 am ET1min read
Swedish steelmaker SSAB reported a 57% drop in first-quarter operating profit to $140.29 million, pressured by weak market conditions and lower prices in North America. The company faces pressure from inexpensive Chinese steel, elevated energy expenses, and increased U.S. import duties. SSAB stated that U.S. President Donald Trump's tariffs did not impact its business during the first quarter.
Swedish steelmaker SSAB reported a 57% drop in its first-quarter operating profit, declining to $140.29 million, according to a press release issued on Tuesday. The company cited weak market conditions and lower prices in North America as primary factors contributing to the significant decrease in profitability [1].Operating profit for the January-March quarter stood at 1.35 billion Swedish crowns ($140.29 million), down from 3.16 billion crowns ($304.34 million) in the same period last year. The company is facing multiple challenges, including the impact of inexpensive Chinese steel and elevated energy expenses [1].
Additionally, European steelmakers are grappling with increased U.S. import duties, which have added further pressure to the industry. However, SSAB stated that U.S. President Donald Trump's tariffs did not significantly affect its business during the first quarter. The company benefits from having production facilities close to major customers in both Europe and the U.S. [1].
The report underscores the broader challenges faced by the European steel industry, which is also experiencing high energy prices and intense competition from cheaper Chinese imports. The situation has prompted calls for protective measures against Chinese steel imports, with the French government planning to collaborate with other European countries to address this issue [3].
In response to these pressures, ArcelorMittal, a major competitor, has announced plans to cut approximately 600 jobs across seven French sites, highlighting the severity of the crisis in the European steel sector [3].
References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3R70CT:0-swedish-steelmaker-ssab-operating-profit-slumps-57-on-weak-market-conditions/
[2] https://uk.finance.yahoo.com/news/swedish-steelmaker-ssab-operating-profit-055856217.html
[3] https://seekingalpha.com/news/4434734-arcelormittal-to-cut-600-jobs-in-france-sparks-calls-for-protection-from-chinese-steel-imports
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