MS says EU policies set 'new floor' for European stainless steel; ups Aperam, Outokumpu

Outokumpu Oyj

16/12/2025 09:24

** Morgan Stanley turns more constructive on the European stainless steel sector, saying policy measures "offer a floor" to an industry in its third year of a downturn

** The broker notes that tighter import restrictions and the EU's Carbon Border Adjustment Mechanism, a tariff on high-carbon goods, should support domestic mill pricing and utilisation

** The brokerage's analysis indicates a potential 12%-38% upside to 2027 consensus EBITDA for stainless equities, driven by volume and price increases aided by these policies

** MS upgrades Luxembourg-based Aperam APAM.AS to "overweight" from "equal-weight", citing its earnings resilience and leverage to a European recovery via its Stainless, Services & Solutions and Recycling businesses

** It also raises Finland's Outokumpu OUT1V.HE to "equal-weight" from "underweight", based on its significant operating leverage to Europe via its leading market position

(Reporting by Clement Martinot)

((Clement.Martinot@thomsonreuters.com;))