Swedish steelmaker SSAB reported a 28% drop in second-quarter operating profit, falling to SEK 2.14 billion—below analyst expectations of SEK 2.29 billion—as the company grappled with weakening steel prices, soft European demand, and surging energy costs. The earnings slump underscores growing pressure on European steel producers navigating a volatile economic landscape.
Although SSAB is not directly impacted by recent U.S. tariffs, CEO Johnny Sjostrom emphasized that global tariff uncertainty continues to create turbulence across international steel markets, adding unpredictability to pricing and trade flows. Looking ahead, SSAB expects further weakness in its European operations in the third quarter, particularly in standard steel shipments, though it anticipates steadier performance in its special steels segment and its business across the Americas.
As one of Europe’s leading steelmakers, SSAB’s performance serves as a bellwether for the broader industry. The latest results reflect the combined challenges of high input costs, inconsistent demand, and geopolitical trade frictions currently weighing on the continent’s industrial recovery.
