The refractories group hails “outstanding operational performance,” with cost-efficiency measures implemented to counteract subdued demand conditions.

RHI Magnesita (RHIM), one of the world’s leading vertically integrated refractories producers, has reported results for the ten months covering January to October 2025, indicating improved performance in the latter months, despite a traditional slow-down over the northern hemisphere’s summer.

In the four months between July and October 2025, RHIM’s adjusted Earnings Before Interest, Taxes, and Amortization (EBITA) was €136M (US$157M), representing a 12.7% margin, ahead of the run rate of €141M (US$163M) in January–June 2025 which saw an 8.4% margin.

RHIM noted that steel volumes for July–October 2025 remained weak, with demand for high-quality steel for the automotive industry “particularly soft” in western markets. The steel industry is a major consumer of refractory products, accounting for over 60% of global refractories use, according to Project Blue data.

Meanwhile, industrial demand for refractories improved over the four-month period, despite remaining at lower levels, with order volumes reported to be 40% below those of recent years. RHIM’s industrial division covers non-ferrous metals, cement and lime, and glass and other applications.

RHIM has implemented a cost-efficiency drive to counteract the challenging demand environment. The group noted that fixed-cost savings had been achieved through the closure of its Mainzlar and Wetro refractories facilities in Germany during H1 2025.

The group reported benefits from the acquisition of one of the leading US refractories producers, Resco, in January 2025, with higher refractories production in the USA mitigating exposure to US tariffs. However, US tariffs introduced some headwinds for the export of raw materials and finished goods from RHIM’s assets in Brazil to the USA.

Tightened EU steel support measures have the potential to provide support for RHIM’s European refractories business. In October 2025, the European Commission proposed new measures: cutting its tariff-free steel import quota to 18.3Mtpy (a 47% reduction compared to 2024 steel quotas) and doubling out-of-quota duties to 50% (up from 25%). If approved, these proposals would replace the existing steel safeguard measures set to expire by June 2026.