Aperam's Stainless Steel Shipments Dip Year-on-Year, But Q4 Sees Signs of Recovery

Aperam's

Boosted by Demand in Europe and Brazil, Aperam Reports Strong EBITDA Growth Despite Ongoing Market Challenges

Global stainless steel producer Aperam saw a year-on-year decline in stainless and electrical steel shipments during the fourth quarter of 2024, despite a modest rebound compared to the previous quarter. The Luxembourg-based company attributed the downturn to a sharp demand contraction, particularly in Europe. However, renewed momentum in Brazil and slight improvements across the European market contributed to a quarterly increase.

In Q4 2024, stainless and electrical steel shipments dropped by 1.5% year-on-year to 401,000 tonnes. Yet, on a quarter-over-quarter basis, shipments increased by 2.56%, reflecting a gradual stabilization of regional markets. On a full-year basis, Aperam delivered 1.626 million tonnes—up 4.9% from 2023—largely due to the prior year’s low shipment levels caused by distributor destocking.

Earnings Surge Despite Steel Segment Decline

Aperam’s adjusted EBITDA for the stainless and electrical steel segment jumped to €42 million in Q4, a significant turnaround from a €34 million loss in the same quarter of 2023. The full-year revenue nearly doubled, rising from €92 million in 2023 to €175 million in 2024. This signals the company's improved cost controls and efficiency, especially amid challenging market dynamics.

Shipments from the Services & Solutions segment also rose, increasing 9% year-on-year to 169,000 tonnes in Q4. Meanwhile, Alloys & Specialties held steady at 10,000 tonnes. In contrast, the Recycling & Renewables division, which includes ELG and Aperam BioEnergia, saw scrap metal shipments fall 7.4% year-on-year to 312,000 tonnes in Q4. Nevertheless, the segment recorded a 6.63% gain over the full year, reaching 1.464 million tonnes.

Outlook Clouded by Consolidation and Debt

Aperam’s overall adjusted EBITDA more than doubled in the fourth quarter to €116 million, buoyed by a record performance in its Alloys segment and solid results from its Recycling & Renewables division. Despite this, the company has warned that first-quarter 2025 EBITDA is expected to be lower. Additionally, the recent consolidation of Universal Stainless & Alloy Products is anticipated to increase net financial debt significantly.

As the metals industry navigates fluctuating demand and supply chain adjustments, Aperam's diversified operations and strategic acquisitions position it to adapt, although short-term pressures remain.