JPM sees stronger EU protectionism as likely tailwind for domestic steel demand
** J.P.Morgan sees stronger EU protectionism measures as a likely tailwind for domestic steel consumption and places ArcelorMittal MT.AS on positive Catalyst Watch into Q2 results
** It estimates that new measures could reduce HRC import volumes by nearly 2Mt/year, about 20% of 2023 EU HRC imports, or about 3% of domestic HRC supply through June 2026
** "We expect stronger EU trade protectionism measures could act as a mitigating tool against elevated exports, and spur greater demand for domestically produced steel" - JPM
** It also notes rising momentum in demand conditions for Europe, with continued PMI strength
** Into rising PMIs, JPM says it keeps its preference for "overweight"-rated ArcelorMittal
** However, it stays cautions on peers citing idiosyncratic risks
** It keeps its "neutral" ratings on SSAB SSABa.ST and Thyssenkrupp TKAG.DE and "underweight" on Voestalpine VOES.VI
Reporting by Eva Orsolya Papp
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