European steelmakers slip after Trump's tariffs pledge

ArcelorMittal SA

26/11/2024 11:03

** Shares in European steelmakers slip after president-elect
Donald Trump pledged tariffs on imports from Canada, Mexico and
China
    ** ArcelorMittal  MT.AS , the world's second-largest
steelmaker, slides 3.6% to the bottom of Amsterdam's main index
AEX  .AEX , peer Outokumpu  OUT1V.HE  is down 1.7%
    ** Less-exposed Acerinox  ACX.MC  and SSAB  SSABa.ST  are
down between 1% and 1.3% 
    ** ArcelorMittal has "no U.S footprint," says ODDO BHF
analyst Maxime Kogge, adding that "since 2020 they just have
small downstream units in the U.S. and no upstream capacity"
    ** J.P.Morgan says that ArcelorMittal could be one of "the
most exposed" European steel companies under its coverage, along
with Outokumpu
    ** It estimates that around 10% of ArcelorMittal's shipments
are likely direct exports to U.S., with the majority from Mexico
and Canada, while puts that number at 8% for Outokumpu
    ** By contrast, JPM says Spain's Acerinox could benefit from
future "made in America" policies as it has the highest
U.S.-based steel footprint within its European steel coverage,
and highest exposure to U.S. end markets
        ** It also notes that Sweden's SSAB generates about
35-40% of sales from U.S.-located steel plants, though adds that
its outlook is complicated by potential reduction or unwinding
of pro-wind policies 
  

    
  

 (Reporting by Anna Peverieri)
 ((Anna.peverieri@thomsonreuters.com))