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Investing.com - SSAB (ST:SSABa) has posted third-quarter earnings that surpassed expectations, as a so far muted impact from elevated U.S. tariffs helped to mitigate pressure from cheap imports from Asia.
In a statement, CEO Johnny Sjostrom said the impact of U.S. President Donald Trump’s sweeping levies has been "limited," adding that most of SSAB’s U.S. sales are produced in the country, helping it avoid import duties.
But Sjostrom flagged that certain special products, particularly high-strength steel for the automotive industry, are "exported from the Nordics."
Steel and aluminium products have been especially in the crosshairs of the Trump administration, with the White House slapping a 50% tariff on imports of most of these metals in June.
Meanwhile, the European steel market was "cautious" during a "seasonally weaker" third quarter, he said. Rising competition from cheaper exports from rivals in Asia, particularly in China, have combined with higher energy costs to dent Europe’s steel business.
Sjostrom noted that SSAB welcomes a proposal from the European Commission put forward in early October which aims to strengthen the resilience of the region’s steel industry by slashing import quotas in half and imposing a 50% levy on shipments exceeding those limits.
Still, SSAB flagged an "uncertain" outlook for its current quarter, citing a seasonal slowdown towards the end of the year in Europe. The firm will also carry out pllaned maintenance in the region and in North America during the fourth quarter.
Operating income jumped by 50% to 1.87 billion Swedish crowns in the quarter ended in September, compared to a company-provided analyst poll of 1.75 billion Swedish crowns on average.
Shares of SSAB inched up by 0.6% in early European trading.