Thyssenkrupp Shares Navigate a Contradictory Landscape

Thyssenkrupp's stock plunges amid an import crisis in electrical steel, forcing production cuts and job losses, despite a major sustainability deal for low-CO? packaging steel.

Thyssenkrupp's current narrative is one of stark contrasts. While the industrial group celebrates a significant sustainability win, it simultaneously grapples with a severe import crisis threatening production and employment. The market's focus is squarely on the latter, with the company's stock price closing at a 52-week low of €7.10 in the latest session.

Broader Market Headwinds and Share Price Pressure

Operational challenges are weighing heavily on investor sentiment. Thyssenkrupp's shares have declined by approximately 27% since the start of the year, trading significantly below their 200-day moving average of €10.02. The weakness is not isolated; the broader European steel sector faces its own difficulties. Demand from the automotive industry has softened, exemplified by a more than 54% collapse in German car exports to China since 2022, creating additional headwinds for steel producers.

A Sustainability Landmark in Packaging Steel

Amid the challenges, a notable achievement comes from Thyssenkrupp Rasselstein, Germany's sole producer of tinplate. The subsidiary has secured a new supply agreement with consumer goods giant Henkel. Henkel will now use Thyssenkrupp's bluemint® steel for the European production of its Tangit brand adhesive and sealant cans.

This specialized packaging steel generates 62% lower CO? emissions compared to conventional tinplate. The reduction is achieved by integrating processed steel scrap into the blast furnace process. Independent verification of the emissions data has been provided by certification bodies TÜV SÜD and DNV. Despite this demonstrable progress, a single green initiative cannot offset deeper structural issues elsewhere in the conglomerate.

Electrical Steel Unit Under Siege from Imports

A critical pressure point is Thyssenkrupp Electrical Steel. The division is confronting intense import competition, specifically for grain-oriented electrical steel (GOES), a material essential for transformers in electrical substations and wind turbines. Since 2022, imports of this product into the European Union have tripled. Imported GOES now accounts for over 50% of the European market volume.

This influx has forced drastic production cuts. The facility in Isbergues, France, which has been operating at half capacity since January, will be completely idled from June through September. Approximately 600 employees at the site are slated to receive state support from the French government. In total, around 1,200 jobs are impacted by these measures.

The strategic importance of the product underscores the crisis. With only two remaining European manufacturers of this key material for the energy transition, Thyssenkrupp is actively lobbying the European Commission for effective trade protection measures.

The Path Forward Hinges on Policy

The immediate future for the electrical steel business appears heavily dependent on regulatory intervention. The company confirms it is in dialogue with EU authorities. Without concrete trade defense measures from the European Commission, the severe pressure on this division—and by extension, on Thyssenkrupp's overall financial performance—is likely to persist.