Luxembourg-based stainless steel producer Aperam reported mixed performance for its Stainless & Electrical Steel segment during H1CY’26, as higher shipments and stronger profitability offset pressure from lower realised selling prices.
The segment’s sales stood at EUR 2.075 billion in H1CY’26, marginally down from EUR 2.082 billion in the corresponding period last year. However, stainless steel shipments increased by 1.3% y-o-y to 860,000 t, compared with 847,000 t in H1CY’25, supported by healthy demand in the European market.
The average selling price declined to around EUR 2,300/t during H1CY’26 from EUR 2,338/t a year earlier, reflecting softer pricing despite improved shipment volumes.
Profitability strengthens on higher volumes and improved market conditions
The Stainless & Electrical Steel segment delivered a strong improvement in earnings during the second quarter. Adjusted EBITDA increased by 68.6% q-o-q to EUR 59 million, while operating income rose sharply to EUR 62 million, compared with EUR 11 million in the previous quarter.
The improvement was primarily supported by stronger European demand, improved shipment volumes and better operational performance.
CBAM and safeguard measures support European stainless market
European stainless steel market conditions remained supportive during the first half of 2026. Demand benefited from the implementation of the Carbon Border Adjustment Mechanism (CBAM) and the new EU steel safeguard measures, which strengthened the competitiveness of domestic producers against imports.
European stainless steel scrap prices remain elevated
The European stainless steel scrap market also remained firm during H1CY’26, supported by healthy mill demand and limited scrap availability. Strong stainless steel production, tighter nickel ore supply from Indonesia, CBAM implementation and expectations surrounding new safeguard measures supported scrap prices throughout the first quarter.
Prices for 18/8 stainless steel scrap (CIF main European port) increased from EUR 995/t at the beginning of 2026 to EUR 1,295/t ($1,492/t) by the end of Q1. Although prices eased slightly during Q2, they remained elevated at around EUR 1,250/t ($1,440/t) at the end of June, continuing to support stainless steel production costs across Europe.
Outlook
Aperam expects European stainless steel demand to remain supported by trade protection measures and improving industrial activity. However, selling prices are likely to remain sensitive to alloy costs, import competition and broader macroeconomic conditions, while elevated stainless steel scrap prices are expected to continue influencing production costs in the near term.
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