The steel maker missed profit forecast and sees recovery slowing.

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Shares in Swedish SSAB, the world’s largest supplier of high-tensile steel, dived more than 6 percent in Stockholm midday trading after it said the pace of recovery in the sector would slow next quarter.

"The recovery in the steel market is expected to continue during the third quarter, but at a slower pace, which may also affect the price trend for SSAB's steel later in the year," chief executive Olof Faxander said on Thursday.

The company also undershot expectations for pretax profit. Second-quarter pretax profit came in at 624 million kronor ($84.24 million), below a mean forecast of 696 million kronor in a Reuters poll and compared to a year-ago loss of 1.1 billion. Sales increased by 66 percent to 10.9 billion kronor.

"Unease concerning the euro and development of the European economies has led to some uncertainty in the market. On the other hand, positive development is expected to continue in South America and Asia, primarily China", Olof Faxander said.