Thyssenkrupp: EU Protection, Operational Recovery, and a Boardroom Clash Converge in June

Just as Thyssenkrupp gets a regulatory tailwind and a key plant back online, internal tensions over the future of its Materials Services division threaten to overshadow the progress. The Essen-based industrial group finds itself at a crossroads this month, with the supervisory board set to decide on the fate of the trading unit against a backdrop of strengthening steel protectionism and a resurgent order book.

The group’s equity closed at €11.37 on Friday, down 3.28% on the day but still showing a year-to-date advance of 17.5%. That resilience masks a swirl of strategic forces — some supportive, others disruptive.

EU import barriers tighten sharply

From 1 July, the European Union will slash its duty-free steel import quota to 18.3 million tonnes a year, a reduction of nearly 47% from the current level. Any volume above that threshold will face a 50% tariff, double the previous rate. The European Parliament approved the regulation on 19 May; Council ratification is pending but considered a formality after a trilogue agreement.

For Thyssenkrupp, which has long lobbied for tougher controls against Chinese overcapacity, the move provides structural relief on its home market. Not every segment benefits equally, however. Thyssenkrupp Electrical Steel, one of only two European producers of grain-oriented electrical steel used in transformers and wind turbines, has been carved out of the quota clampdown. The unit has secured a separate EU safeguard investigation, but the pressure remains acute: production at its Isbergues site in France will halt from June through September, affecting roughly 600 workers, as Asian suppliers now cover more than half of the EU market at prices well below European cost.

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Hot strip mill restarts after fire

Operationally, the steel division has reached a milestone. The Warmbandwerk 4 hot strip mill in Duisburg has resumed trial operation following a flash fire in October 2025 that damaged furnaces and parts of the roof. During the repair work, Thyssenkrupp implemented technical upgrades intended to improve availability and process stability. The associated continuous caster had already restarted in mid-December. The mill produces hot-rolled flat products for automotive, mechanical engineering, construction and energy sectors, including high-strength premium steels.

Financials rebound on naval orders

The improved operational picture is backed by a sharp bounce in financials. In the second quarter of its 2025/2026 fiscal year, order intake surged to €10.6 billion, up 32% year-on-year, driven largely by large contracts at Marine Systems. Adjusted EBIT climbed to €198 million from just €19 million a year earlier. The group reaffirmed its full-year outlook for adjusted EBIT of between €500 million and €900 million.

Thyssenkrupp has already spun off hydrogen subsidiary Nucera and pushed Marine Systems toward independence. The next piece in the transformation puzzle is Materials Services, the trading arm. The supervisory board will meet in mid-June to choose among a spin-off, an IPO, or a sale.

Governance dispute over Materials Services

That decision is now mired in a governance clash. Management favours converting the unit into a Kommanditgesellschaft auf Aktien (KGaA), a legal form that would allow Thyssenkrupp to retain operational control even with a minority stake. The IG Metall union objects, arguing that a KGaA would hollow out co-determination rights. Deputy supervisory board chairman Jürgen Kerner is demanding direct talks with CEO Miguel López, especially after negotiations with potential partner Jindal Steel International were paused. Without an external investor, the workforce wants the company to push through the restructuring on its own.

External pressures mount

Outside the boardroom, the IG Metall has called a large rally in Berlin for this Friday, marching from the Brandenburg Gate to the Economics Ministry to protest the steel division’s restructuring plans, which envisage cutting or outsourcing up to 11,000 jobs. The union is also pressing for reliable government commitments on an industrial electricity price, arguing that the Duisburg site must stay competitive.

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The OECD has meanwhile warned of massive global steel overcapacity, with state-subsidised Chinese production driving price pressure that directly hits European producers’ margins — despite ongoing reform efforts.

Technical markers show resilience — and risk

The stock trades 16% above its 50-day moving average and about 13% above its 200-day counterpart. The relative strength index sits at 58.8, comfortably in neutral territory. But the annualised volatility of 56% sends a clear signal: this is a cyclical name exposed to global demand and commodity prices, and investors should brace for sharp swings.

The outcome of the supervisory board meeting in mid-June will determine not only the fate of Materials Services but also the pace and credibility of Thyssenkrupp’s broader transformation — and whether the rally that has lifted the stock this year can hold its ground.

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