Thyssenkrupp’s Rally Accelerates as EU Steel Curbs and Spin-Off Plans Converge

Thyssenkrupp shares jump 6% as EU slashes steel import quotas, Salzgitter beats earnings, and spin-off plans advance, lifting stock 24% YTD.

Thyssenkrupp shares jumped 6.02% on Friday to €11.98, pushing the stock’s year-to-date gain past 24% and extending a recovery that has seen the price more than double from its March trough of €7.10. The latest leg of the rally is being powered by an unusually tight alignment of European trade policy, a strong earnings surprise from a domestic rival, and accelerating progress on the long?promised breakup of the conglomerate.

The most immediate catalyst came from Brussels. Since July 1, the European Union has slashed its tariff?free steel import quota by 47% from the 2024 level, capping annual duty?free shipments at just 18.3 million tonnes. Any steel entering above that threshold now faces a 50% tariff, double the previous rate. The move is aimed squarely at cheap imports from China, India and Turkey, which have long squeezed margins for European mills. For Thyssenkrupp Steel Europe, the tightening effectively erects a protective barrier in its home market, giving management more room to improve pricing and profitability.

The macro backdrop lent additional support. A weaker?than?expected U.S. jobs report on July 2 eased fears that the Federal Reserve would keep interest rates elevated for longer, lifting risk appetite across markets. Germany’s DAX hit a fresh all?time high of 25,810 points on Friday, while the pan?European STOXX 600 also notched a record. The buoyant mood helped lift the entire steel sector, and Thyssenkrupp was an outsized beneficiary.

Fellow German steelmaker Salzgitter added to the tailwind. The company reported a first?quarter operating profit of €280 million, nearly double the consensus estimate of €147 million, and reiterated its full?year guidance for 2026. The strong print rippled through the industry, with investors betting that Thyssenkrupp could post similar resilience when it next reports.

Corporate restructuring remains the longer?term narrative. Thyssenkrupp is pushing ahead with the spin?off of its materials?services division, which will be renamed “tk accelis” and floated independently in autumn 2026. The supervisory board approved the plan on June 16, and an extraordinary general meeting on August 7 will vote on the next stage. Bank of America, which rates the stock a buy, argues that the separation will create a cleaner investment case for the parent company, stripping away a non?core unit and sharpening the focus on steel and industrial solutions.

The technical picture reinforces the bullish mood. The stock now trades at €11.98, 19.93% above its 200?day moving average of €9.99 and 11.46% above the 50?day average of €10.75. The relative?strength index sits at 64.1, indicating solid upward momentum without entering overbought territory. The current price is still 9.55% below the 52?week high of €13.24 set in October 2025, suggesting room to run if the catalysts hold.

For the moment, Thyssenkrupp is riding a rare combination of political protection, sector strength and structural reform. The August 7 shareholder vote will be the next critical milestone, testing whether management can convert policy tailwinds and strategic promises into a durable rerating of the stock.