Salzgitter sees improved conditions but weak steel demand persists

Salzgitter said European trade measures and the introduction of the Carbon Border Adjustment Mechanism (CBAM) have improved conditions for the region's steel industry, although weak economic activity and subdued steel demand continue to weigh on the market.

The German steelmaker reported that the European strip steel market showed a positive trend in the first nine months of 2026, supported by tighter EU trade measures and CBAM. The measures improved the competitive position of domestic producers and supported prices, with European strip steel spot prices rising by just under 20 pct over the period, according to the company.

However, Salzgitter said the outlook for steel demand remains uncertain. The company noted that key steel-consuming industries continue to show muted and uneven development, while European steel consumption is expected to grow by only 0.1 pct in 2026. Excess global capacity, competition from China and delays to planned infrastructure and defence investment remain risks to the market recovery.

Against this backdrop, Salzgitter significantly improved its financial performance in the first nine months. Revenue increased to EUR 7.3 bln (USD 8.1 bln), from EUR 6.9 bln a year earlier, supported by higher selling prices and the consolidation of Huttenwerke Krupp Mannesmann (HKM).

EBITDA rose to EUR 534.9 mln (USD 594.3 mln), compared with EUR 224 mln in the same period of 2025, while net profit reached EUR 177.2 mln (USD 196.9 mln), compared with a net loss of EUR 46.5 mln a year earlier.

The results were also supported by Salzgitter's stake in copper producer Aurubis, which contributed EUR 252 mln to earnings during the nine-month period.

The company has raised its 2026 outlook and now expects revenue of around EUR 10 bln (USD 11.1 bln), EBITDA before valuation effects of EUR 800-875 mln and pre-tax earnings before valuation effects of EUR 400-475 mln.

Salzgitter CEO Gunnar Groebler said the company's operational performance was moving in the right direction, supported by improved European trade protection. However, he said weak economic growth and internationally uncompetitive energy costs remain major challenges.

Salzgitter AG is one of Germany's leading steel firm, producing flat and long steel products, tubes and engineered solutions for the automotive, construction, energy and industrial sectors.

1 USD / 0.9 EUR