European steal shows mixed response to Trump's planned tariff hike

Kloeckner & Co SE

02/06/2025 09:50

Corrects typographical error in headline, no changes to text

** European iron and steel stocks show mixed response after Trump said on Friday he planned to increase tariffs on imported steel to 50% from 25%

** These duties fall under Section 232, which has not been blocked by courts, a trader notes

** The trader has a cautious stance on ArcelorMittal MT.AS due to its dependence on U.S. sales exported from other regions

** "Most of the other groups are in an intermediate position, with Voestalpine undoubtedly being the most impacted, but its high-end positioning should help absorb the shock," the same trader adds

** Shares in ArcelorMittal and Aperam APAM.AS drop 1.2%, Austria's Voestalpine VOES.VI drops 1.6% and Eramet ERMT.PA drops 3.6%

** Germany's Thyssenkrupp TKAG.DE falls 1.6%, while Salzgitter SZGG.DE, Aurubis NAFG.DE and Kloeckner KCOGn.DE slip between 0.5% and 1.1%

** "The latest announcements rather reinforce our sector hierarchy since our positive opinion on SSAB, ACERINOX and VALLOUREC is largely based on the strength of their US presence," the trader says

** SSAB SSABa.ST rises 5.5%, while Acerinox ACX.MC and Vallourec VLLP.PA rise 3.7% and 4% respectively

 (Reporting by Jerome Terroy and Dimitri Rhodes)

 ((Dimitri.rhodes@thomsonreuters.com))