Steel industry in the crisis: giants are fighting for their future!

Steel industry in the crisis: giants are fighting for their future!

Salzgitter, Deutschland - On January 18, 2025, the current stock performance in the steel sector shows a mixed development. According to Stock Exchange Social records a weekly increase of 8.52%, followed by Voestalpine with 7.33%and ArcelorMittal with 5.91%. Salzgitter, on the other hand, is up to 2.45%.

In the monthly view, ArcelorMittal leads with an increase of 7.06%, while Voestalpine has a decline here with -0.77%. If you look at the year-to-date performance, Thyssenkrupp is +6.61%, which is a significant increase compared to the previous year when the course fell by -37.34%. Salzgitter also shows a slight improvement with 0.38%, although ArcelorMittal and Voestalpine stagnate or have declines.

Current developments in the steel industry

The European steel industry, in which companies such as Thyssenkrupp Steel Europe AG and ArcelorMittal operate, is currently facing massive challenges. According to steel radar are several large companies and Voestalpine, forced to react to the crisis through personnel loss and restructuring.

Thyssenkrupp plans to reduce its production capacities from 11.5 million to 8.7 to 9 million metric tons and plan to discharge 5,000 employees by 2030, while 6,000 positions are to be transferred to external service providers. This should lead to a reduction in personnel expenses by 10%.

ArcelorMittal, on the other hand, shifts his decarbonization projects and is considering the closure of several works, while Liberty Steel Group suffers from a decline in production figures due to economic instability. Voestalpine will also implement drastic measures, including the closure of the Camtec plant in Linz until the end of the financial year 2025/2026, which is due to increasing energy costs and falling demand.

These developments are part of a comprehensive environment that, according to the industrial associations Eurofer and Industriall Europe, requires an intensive discussion about a steel action plan. The warnings of unfair trading practices, high energy prices and the lack of raw materials are central to ensure the competitiveness of European steel production and the associated jobs.