Latest News

Salzgitter reduces forecast as the steel market remains weak

Salzgitter, a German steel manufacturer, lowered its 2025 outlook on Monday for the second consecutive time, citing sales and earnings that were at the lower end of their earlier ranges. It also noted the market had not improved since the start of the year.

It added that recent signs of modest price increases will not be reflected until next year. Salzgitter now expects sales to be just over 9 billion euros ($10,5 billion), down from the previous range of 9.0 billion to 9.5 billion. The company also reduced its top-end profit guidance range by 50 million euro, to between 300 and 350 million.

The company stated that its loss would range between 50 and 100 millions euros. It used to guide for the metric between a 100 million loss and breakeven.

Birgit Potrafki, the Finance Chief of Finland, praised the potential for the new measures presented by the European Commission to improve the competitiveness in the European steel industry. Last month, the Commission proposed reducing tariff-free import quotas for steel by nearly half and imposing a 50% tax on excess shipments in an effort to maintain viable steelmaking within the European Union. The European Steelmakers warned that a flood of steel could enter the continent if exporters diverted shipments because of U.S. Tariffs. Salzgitter was among those who asked the EU to take protection measures.

Potrafki stated that if the economic recovery expected next year materializes, they expect an increase in earnings.

According to a poll conducted by the company, Salzgitter's results for the first nine-months of 2025 were largely better than market expectations. The loss before taxes in this period was 72.7 millions euros, while analysts expected a loss 90 million euros.

Earnings were 224 million Euros, compared to the consensus estimate of 219 millions.

(source: Reuters)