Acerinox calls itself positioned to overcome economic challenges

Spain-based stainless steel producer Acerinox S.A., in a presentation created to accompany its first-quarter 2025 financial results, refers to flat demand and lower purchasing manager index (PMI) figures from around the world as indicative of a more challenging 2025 metals sector landscape compared with the profitable one it enjoyed last year.

Acerinox cites March 2025 PMI figures that are below 50 (signaling contraction) in the United States and Europe and it describes stainless steel demand in the U.S. early this year as flat.

An array of tariffs introduced by President Trump and countermeasures in some nations have changed or postponed purchasing and investment decisions, according to the firm.

“The uncertainties as a result of the geopolitical and tariff policy situation persist and continue to significantly affect the demand for stainless steels and high-performance alloys,” Acerinox writes.

Acerinox CEO Bernardo Velázquez does not necessarily put his firm’s North American Stainless (NAS) business unit in that category. “Regarding tariff policy tensions, said tariffs should result to be positive for Acerinox given that the U.S. is our main market,” he said in early May of NAS, which makes recycled-content stainless steel in Ghent, Kentucky.

Earlier this year, Velázquez referred to the geographical diversity of Acerinox as a likely positive, remarking, “The results obtained in this market environment highlight the effectiveness of the strategic decisions adopted over recent years. Acerinox is successfully mitigating sector volatility while fulfilling its commitment to provide higher value-added solutions to customers.”

In the first quarter of 2025, Acerinox reported a revenue figure 5 percent higher compared with the first quarter of last year. The company also matched a 31-euro-cents earnings per share figure from last year.

“The uncertainties as a result of the tariff policies and a highly complex macroeconomic context have caused markets to slow down, waiting for more visibility and postponing the recovery of demand,” says Velázquez, adding, “Acerinox is focusing on controlling what is within our sphere of control and implementing our strategic plan.”

In the outlook section of its first quarter earnings news release, Acerinox says it earnings before interest, taxes, depreciation and amortization (EBITDA) in the quarter now underway to be higher than in the first quarter of this year.

“In stainless steel, the order book in the U.S. is solid, and the results as a consequence of the implementation of the strategic plan at Acerinox Europa continue at a good pace,” the firm states. “In high-performance alloys, we expect stability in the U.S. and lower volumes in Europe for the second quarter.”