EMEA mining to embrace strategic change in 2026, says JP Morgan

SSAB AB

03/12/2025 09:07

** J.P. Morgan discourages sticking to the status quo in its 2026 outlook for EMEA mining and steel, as it remains bullish overall on the sector while a strategic paradigm shift in critical minerals is underway

** "2026 will see global miners embrace proactive strategic change to reposition for future opportunities in copper, gold, lithium and new frontiers," the broker says, highlighting the U.S. and Argentina as new frontiers

** Antofagasta ANTO.L remains JPM's top pick for EMEA metals and mining, highlighting sector-topping growth and return on capital employed (ROCE) in copper

** The broker also sees Rio Tinto RIO.L as its conviction large-cap play, with an abundance of value to unlock in 2026 under its new CEO

** On the European steel sector, JPM says it has high conviction for earnings recovery and higher EU steel share prices in 2026, reiterating "overweight" ratings for Voestalpine VOES.VI, SSAB SSABa.ST and ArcelorMittal MT.LU

** The broker downgrades Salzgitter SZGG.DE to "underweight" from "equalweight", citing a share overhang after media reports of key shareholder GP Günter Papenburg planning to divest its stake in the German steel group

** The broker is bullish on gold, with Fresnillo  FRES.L as its top pick in the UK and EU and the London-listed shares of Anglogold AU.N as a top pick for global investors

COMPANY
RATING
OLD RATING
PT
OLD PT
Salzgitter SZGG.DE
Underweight
Neutral
EUR 27.90
EUR 28.50
Antofagasta ANTO.L
Overweight
No change
GBP 35
GBP 34
Rio Tinto RIO.L
Overweight
No change
GBP 69.50
GBP 61
Fresnillo FRES.L
Overweight
No change
GBP 43
No change
AngloGold AU.N
Overweight
No change
$131
$128
ArcelorMittal MT.LU
Overweight
No change
EUR 45
EUR 42
Voestalpine VOES.VI
Overweight
No change
EUR 43.40
EUR 43.70
SSAB SSABa.ST
Overweight
No change
SEK 78
SEK 73

 (Reporting by Bernadette Hogg)

 ((bernadette.hogg@thomsonreuters.com))