Acerinox, shielded by tariffs, eyes price hikes for US business
"In the United States, we are trying to increase our prices, which is not easy under the current circumstances," CEO Bernardo Velazquez told analysts in a post-earnings call.
There will be no "relevant" hikes in the third quarter, as price adjustments are typically not made during the summer season, Chief Corporate Officer Miguel Ferrandis added.
"At the end of September, we shall see," he said, noting the decisions also depended on factors such as market visibility, a potential EU-U.S. trade deal and clarity on Russia's war in Ukraine.
As the largest producer of stainless steel in the U.S., Acerinox benefits from Trump's protectionist policies and 50% tariffs on imported steel.
Demand for stainless steel is subdued in both Europe and the United States, but tariffs on competitors mean Acerinox can keep U.S. prices stable, Velazquez told analysts.
Meanwhile in Europe, the economic turmoil has dragged steel prices, driving a big miss in Acerinox's second-quarter results.
"We have a lot of pressure in the market, low demand, high inventories, so prices are going down," Velazquez said.
Imports have grown close to 75% in Europe this year, he said, adding that the European Union needed to take the necessary measures to protect the market from Asian imports, like the U.S. had done.
U.S. hot-rolled coil steel futures have gained 24% so far this year to $876 a short ton ($965.60 per metric ton), while European prices have fallen 4% to 531 euros ($623.93) per metric ton.
($1 = 0.8511 euros)
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