SMM: High-Grade NPI Sentiment Up, Steel Mills' Procurement Boosts Transactions

Aperam will invest €10 million to remove a cold-rolling bottleneck at its Timóteo facility in Brazil, targeting a 5% capacity increase by mid-2027. The company also completed the acquisition of Magnetec on April 1, 2026 and created Aperam Magnetic Components, extending its downstream exposure into higher-value magnetic solutions for EVs, energy, and aerospace. The move shows Aperam is continuing to push its stainless and specialty materials chain further into value-added end markets.

Aperam’s free cash flow turned negative at €44 million in the first quarter, compared with positive €112 million in Q4 2025. Working capital increased by €144 million as the company built inventory ahead of a seasonally stronger second quarter, pushing net financial debt up to €1.057 billion, an increase of €79 million from the prior quarter. Management said debt is expected to ease again as earnings improve later in the year.

Aperam said the improvement in first-quarter performance was driven mainly by seasonal factors and operational efficiency rather than any fundamental recovery in end-market demand. The company noted that construction demand in Europe has still not recovered, while consumer goods and automotive remain under pressure, and Brazil was in its seasonally weakest quarter. This suggests the latest earnings rebound in Europe’s stainless market remains more cyclical than structural for now.