Thyssenkrupp's Strategic Maneuvers Face a Steel Sector Squeeze

Thyssenkrupp's green tech and defense units secure major contracts, but its core steel business faces a severe import crisis, idling plants and pressuring the share price.

Thyssenkrupp’s share price, closing at EUR 8.54 on Friday, tells a story of persistent pressure, down nearly 12 percent since the start of the year. This valuation stands in stark contrast to a series of strategic operational wins, highlighting the profound disconnect between the conglomerate’s advanced technology units and its besieged core steel business.

A significant Asian contract underscores the demand for the group's green industrial expertise. Thyssenkrupp Uhde has secured a major order from South Korea's POSCO E&C to plan and supply a low-emission coke oven battery for the steelworks in Pohang. The deal centers on Uhde's proprietary EnviBAT® technology, a system that slashes emissions during coking through intelligent pressure monitoring and is already installed in over 30 batteries worldwide. This project will replace an aging facility from the 1980s and includes modern tar separation and gas cleaning plants.

Meanwhile, the group's naval arm is making a strategic play for one of the decade's largest defense contracts. Thyssenkrupp Marine Systems (TKMS), a finalist alongside South Korea's Hanwha Ocean for a Canadian submarine order worth up to EUR 37 billion, has signed a cooperation agreement with Canadian firm E3 Lithium. The partnership aims to secure local supply chains for lithium-ion batteries, which allow for significantly longer submarine dive times. E3 Lithium's Clearwater project in Alberta has the potential to produce up to 36,000 tonnes of battery-grade lithium annually at full capacity.

These technological advances are mirrored in domestic decarbonization efforts. At its Duisburg site, construction of the central direct reduction tower began in February, a project designed to save up to 3.5 million tonnes of CO? annually. The steel division will also showcase hydrogen-optimized materials at the Tube trade fair in Düsseldorf starting Monday, April 13, 2026.

These bright spots, however, are overshadowed by a severe crisis in the traditional steel sector. Imports of grain-oriented electrical steel have tripled since 2022, jumping another 50 percent in 2025 alone. Asian suppliers now hold over half of the European market volume in this segment, which has so far been excluded from EU safeguard measures. In response, Thyssenkrupp will completely idle electrical steel production at its Isbergues site in France from June to September 2026, putting 1,200 jobs in Germany and France at risk.

The company's near-term fortunes hinge on decisive political action. The European Parliament has proposed capping import quotas and doubling safeguard tariffs to 50 percent. However, these new rules would not take effect until July 1, 2026 at the earliest, leaving a critical gap as the production stoppage begins in June. Ongoing EU trilogue negotiations in spring 2026 aim to cut steel import quotas by 47 percent.

Adding to the headwinds, the hydrogen subsidiary Thyssenkrupp Nucera recently revised its guidance. In an ad-hoc release, it lowered its revenue forecast to a range of EUR 450 to 550 million, down from an initial EUR 500 to 600 million. The group's EBIT forecast was also adjusted to a range of EUR -80 to -30 million. Nucera cited unexpected additional costs in scaling up its electrolyser business and the withdrawal of a US customer who abandoned a project due to insufficient expected returns.

All eyes are now on the half-year financial report due on May 12, 2026. Investors await concrete updates on the EU trade protection negotiations and the status of talks with Indian steelmaker Jindal Steel. These developments will be pivotal in reshaping the market's valuation of Thyssenkrupp's steel division and determining whether operational successes can finally translate into share price strength.