Thyssenkrupp Steel anticipates continued challenges due to geopolitical tensions and uncertainties in global trade policies but remains committed to its green transformation and sustainability goals, Germany’s second-largest flat steel producer said in a quarterly results statement May 15.
ThyssenKrupp Steel Europe is moving forward with its low-carbon production transformation, while maintaining cautious forecasts and anticipating sales declines of 3% to 6% for the fiscal year 2024-25 (October-September).
Steel Europe’s sales decreased by 8% year over year to Eur2.64 billion in the January-March quarter, while sales for the first half of the fiscal year fell 6% to Eur10.7 billion.
The steel unit faced weak demand and underutilization, particularly due to declining orders from the automotive industry. Price-induced effects contributed to lower sales revenues and capacity utilization.
In January-March, Thyssenkrupp produced 2.08 million mt of crude steel, down from 2.48 million mt in the previous quarter and from 2.697 million mt a year earlier.
“For Thyssenkrupp, fiscal year 2024/2025 is developing in line with our forecast. Strategically, it is a year for making decisions; financially, it is a year of transition,” said Miguel Lopez, CEO of Thyssenkrupp AG.
“Steel Europe is working resolutely on the planned restructuring of the business. We are consistently implementing the measures of our APEX performance program in all segments. By contrast, the persistently difficult market environment is reflected in our operational figures for the second quarter. In the second half of the year, we are expecting a more stable market environment and positive effects from the measures we have initiated. We therefore confirm our full-year forecast,” he added.
Steel Europe is moving forward with its realignment based on the existing industrial concept for the future. At the start of May, IG Metall, the metalworkers’ union, and Thyssenkrupp Steel reached an agreement in principle on the necessary restructuring. Further negotiations are expected to lead to a collective bargaining agreement by the summer.
A further key element of Thyssenkrupp Steel’s future positioning strategy is breaking the economic link with Hüttenwerke Krupp Mannesmann as it will reduce the capacity to 8 million-9 million mt a year, from the current 11.5 million mt a year. At the start of April 2025, Thyssenkrupp Steel initiated the implementation of this step by terminating the supply contract with HKM. As a result, Thyssenkrupp Steel Europe’s obligation to purchase around 2.5 million mt/year of steel will expire by the end of 2032 at the latest.
Platts, part of S&P Global Commodity Insights, assessed domestic HRC in Northern Europe at Eur640/mt ex-works Ruhr, stable day over day.
