Prysmian slips: 'pays' for lighter US tariffs on aluminium

(Il Sole 24 Ore Radiocor) - Last session of the week with the handbrake on for Prysmian , which is suffering from the possibility of lighter tariffs in the United States on steel and aluminium being considered by US President Donald Trump. The stock, which in the early stages had surrendered almost five points to an intraday low of EUR 96.96 per share, then reduced its declines, still remaining at the bottom of the Ftse Mib.

According to rumours reported by the Financial Times, Trump is considering reducing some tariffs on steel and aluminium products, after imposingtariffs of up to 50% last summer and extending taxes to a number of goods made from these metals, including washing machines and ovens. Now, however, his administration is reviewing the list of products affected by the taxes and plans to exempt certain items, stop expanding the lists, and instead launch more targeted national security investigations on specific goods, three sources familiar with the matter told the newspaper.

"The decision to ease the tariffs on steel and aluminium, among the first introduced in Trump's second term, is linked to the fact that, according to economists, it is actually Americans who pay the price of the duties, contrary to the president's claim that it would be foreign companies that bear the burden," explains the financial newspaper. However, the news is not necessarily positive for companies in the sector: "If confirmed and pending details, this could be potentially negative for Prysmian which, as a vertically integrated player in the US, should benefit in 2026 from the tariffs on aluminium (increased market share and/or margins due to the impact of tariffs on the cost structure of importers)," explain Intermonte analysts.

As Prysmian's stock fell sharply, investors shifted to Tenaris, which was favoured by the hypothesis of tariffs easing. The stock is benefiting from the potential reduction in cost pressure and lower tariffs on countries, such as Mexico, one of the group's major industrial centres. Tenaris, a global manufacturer and supplier of pipes and services for oil and gas exploration and production, also produces Octg (oil country tubular goods), drilling and casing pipes that are critical to US oil and gas companies.

As Seeking Alpha analysts explain, 'the tariff reduction, if confirmed, could have a positive impact on the costs of the group, which generates a large portion of its sales in the United States'. At the publication of its third-quarter accounts at the end of October, Tenaris had reported that 'in the US, following the increase in tariffs on steel imports from 25% to 50% in June, Octg imports are declining from the high levels of the first half of the year, but inventories remain high and Octg prices do not yet reflect the increase in costs due to tariffs'.