Steelmaker SSAB on Monday reported third-quarter earnings above forecasts helped by surging steel prices and said it expected demand to remain good during the final months of 2021, even if it injected a note of caution about development in Europe.

An economic recovery from the initial plunge as the pandemic struck has driven up demand and prices for steel products, supporting SSAB shares, which are up 54% so far this year.

“Looking ahead, we expect Q4 to show good development, partly because there is a certain lag in the realization of our steel prices, compared to the spot market,” Chief Executive Martin Lindqvist said in a statement.

However, the company said it expected a softening of demand in Europe, primarily due to the semiconductor shortage, which is affecting the vehicle industry.

SSAB added that it expected demand in North America to be strong during the fourth quarter, with global demand for high-strength steel strong in more or less all markets.

The company’s operating profit was 5.80 billion crowns ($676.5 million) versus a year-ago loss of 973 million, beating the 4.41 billion profit seen by analysts according to data from Refinitiv.