JPM sees "European renaissance" for EU Steel sector, ups Aperam, cuts Acerinox and SSAB

SSAB AB

29/01/2026 08:16

** J.P. Morgan sees a "renaissance" for European Steel, saying that the sector's equities have outperformed MSCI Europe by c.20% since the European Commision announced proposals to reduce EU steel imports

** The broker continues to forecast higher EU steel prices and an earnings transformation for EU Carbon & Stainless steel producers in 2026/27, due to implementation of those proposals

** JPM forecasts a recovery in the sector from Q4 earnings onwards for 2025-27 across all EU Carbon and Stainless Steel, and sees improving risk/reward for EU-centric Stainless Steel equities in the 2026 time-frame

** It also forecasts greater acceleration in EU Steel prices and operating margins than in the US and therefore says it prefers Steel equities with high exposure to Europe end-markets

** It upgrades Aperam APAM.AS to "overweight" on its European exposure and downgrades Acerinox ACX.MC to "underweight" and SSAB SSABa.ST to "neutral

** The broker reiterates its bullish Steel sector outlook and its top picks remain Carbon Steel producers ArcelorMittal MT.LU and Voestalpine VOES.VI both with "overweight" rating

 (Reporting by Joao Manuel Mauricio)