Spanish steelmaker Acerinox reported an 81% decline in first-quarter [1] net profit compared to the same period in 2024, citing weak stainless steel demand in Europe and ongoing global trade uncertainties.
The company posted a net profit of 10 million euros ($11.28 million) for the quarter, a sharp drop from 53 million euros a year earlier. Acerinox attributed the downturn to tariff-related uncertainties and broader market challenges, which have delayed the anticipated recovery in demand.
While the steelmaker expects to benefit from trade barriers in the U.S.—where its most profitable mills are located, it remains cautious about potential disruptions in Europe. Acerinox is concerned that production previously destined for North America could now be redirected to the European Union, potentially impacting its business in the region.
Despite these challenges, the company views deglobalization as an opportunity, emphasizing its strategic advantage of operating across three continents. Acerinox believes its global footprint positions it well to navigate shifting trade dynamics and capitalize on regional market trends.
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[1] Acerinox’s first-quarter profit falls dramatically on weak steel demand https://www.globalbankingandfinance.com/UK-ACERINOX-RESULTS-02f7084e-a307-4572-8f64-589b43a9e1cf