US levies take centre stage

Pronouncements from the White House have added uncertainty to secondary markets already faced with weak EU demand and higher ore output in Indonesia.

Steel has been at the centre of international politics this year with President Donald Trump announcing a slew of tariffs immediately after his return to the White House. In early February, he lumped a 25% levy on iron and steel imports, including stainless.

Unlike the regime introduced during his first term, no countries have been exempted this time. However, it was soon clarified that scrap steel was not included.

2024 results

Finnish stainless steel manufacturer Outokumpu recently announced it will not to invest in a cold rolling capacity expansion in the US. It said the US tariffs ‘may materially impact the analysis conducted prior to those announcements’. Outokumpu also announced its 2024 full year results with deliveries and earnings both declining. It reported an operating loss of EUR 51 million, compared to a loss of EUR 100 million in FY23.

Aperam also announced 2024 full year results, with higher Ebitda of EUR 358 million, up from EUR 293 million FY23, despite lower sales revenue – EUR 6 255 million versus EUR 6 592 million for FY23.

Elsewhere, Anglo American agreed the sale of its nickel business to MMG for a cash consideration of up to US$ 500 million. The nickel business comprises two ferro-nickel operations in Brazil, and two greenfield growth projects.

EU demand weak

Meanwhile, Joost van Kleef of Oryx Stainless noted in a BIR World Mirror that 2025 had got off to a cautious start, with order intakes slightly higher but unrelenting margin pressure.

‘A fresh chapter in the global trend towards protectionism was opened in recent days when the new administration in the USA announced import tariffs on various metal/steel products,’ he wrote. ‘This will hit those stainless producers which have implemented a globalised value chain and which need to import certain semi-finished products for further treatment in their US-based facilities.’

Van Kleef also said that margins realised on goods sold by European mills remain insufficient. ‘‘Weak demand within the EU, as well as a huge capacity overhang in Asia, have built continuous pressure on margins and are making it difficult to achieve any sales price increase on finished goods.’

Price watch

By mid-February, nickel prices had trended lower, fluctuating between US$ 15 300-15 500 per tonne, also impacted by changes to the US dollar.

LME nickel stocks have continued to rise, most recently at 190 000 tonnes, up from 170 000 tonnes in January, having increased monthly from only 80 000 tonnes in late May 2024.

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