Thyssenkrupp notes a worsening situation on the steel market

Deteriorating market conditions do not affect negotiations with a potential investor

Thyssenkrupp’s steel division is seeing a deterioration in the steel market, but nothing has changed in negotiations for its partial sale. The head of the supervisory board of Thyssenkrupp Steel Europe Sigmar Gabriel told about this, reports Reuters.

Previously optimistic profit expectations, he noted, have deteriorated significantly due to economic weakness in Germany and other markets, as well as rising costs of raw materials and energy.

An additional negative factor was strong competition from Chinese steel producers in the European market.

“Most of these events are very familiar to those in the steel industry, who are aware of the traditional ups and downs of the steel economy and the associated wild swings in steel prices,” Gabriel said.

He called on the EU to create conditions for fair competition through appropriate measures, otherwise there is a risk that the European steel industry could decline.

Sigmar Gabriel said the deteriorating market conditions will not affect negotiations on the possible sale of half of Thyssenkrupp’s steel division to Czech billionaire Daniel Kretinsky. He noted that such fluctuations are common in the steel sector and expressed confidence that potential investors are aware of this.

As GMK Center reported earlier, Thyssenkrupp leads negotiation on the sale of 50% of the steel division to a Czech billionaire. Earlier this year, the company renewed efforts to spin off the business, a plan that had previously been put on ice following failures to list, sell or find a merger partner for Europe’s second-largest steelmaker.

Kretinsky’s interest in purchasing part of Thyssenkrupp’s steel division became known in June 2023. He is the owner of the holding company Energeticky a Prumyslovy Holding (EPH), one of the largest energy groups in Europe. It was discussed that EPH could act as a supplier of energy resources to Thyssenkrupp Steel.