Bankinter | The European Commission could announce tariffs on imported steel and reduce current quotas next week, according to press reports.
The European Commission could establish a permanent mechanism to raise tariffs on imported steel and reduce current quotas and tariffs, which could reach 50% on imports exceeding those quotas.
Bankinter analysis team’s view: If confirmed, this would be good news for companies with a presence in Europe, which would see an improvement in their potential demand, even without a clear improvement in final demand, given the recovery in market share. Among steel companies with exposure to the European market, ArcelorMittal (Neutral, Target Price: €27/share) generated 26% of its EBITDA in Europe in 2024. We already pointed out that one of the main catalysts would be the reduction in import pressure from Asia. ArcelorMittal would be better positioned to benefit from improved momentum in infrastructure and defence demand in Europe.
