Deutsche Bank raises outlook for European steel sector

Deutsche Bank has raised its outlook for the European steel sector, predicting that prices may continue to rise despite currently limited demand. The bank suggests that seasonal trends could support prices through the first half of 2027, noting that supply has not yet demonstrated the ability to adapt quickly enough to market changes.

This positive outlook is supported by recent European Union trade protection measures. As of July 1, the EU reduced non-taxed steel import quotas by nearly half and doubled customs duties on volumes exceeding those quotas to protect domestic producers from global overproduction.

Consequently, Deutsche Bank has increased price targets for several major steel companies. Thyssenkrupp’s target was raised from 16 to 18 euros, while ArcelorMittal saw an increase from 66 to 71 euros. Other adjustments include Salzgitter (63 to 70 euros), Aperam (65 to 66 euros), and Voestalpine (60 to 63 euros). The bank maintains a ‘buy’ rating on most sector stocks, with the exception of Outokumpu and SSAB, which are rated as ‘hold’.