Thyssenkrupp, the second-largest European steel producer, reported during its Q1 fiscal year 2024-2025 results that the market environment remains challenging due to uncertainties about future global economic growth and new US steel tariffs. CFO Jens Schulte highlighted potential secondary effects if cheap steel from countries like China were to be pushed onto the European market as a result of the US tariffs, which could further increase price pressure in Europe. However, a reliable estimate of this effect is not yet possible as the tariffs have not yet come into effect.

Thyssenkrupp emphasized that the announced US tariffs would have a limited impact on its business, as Europe is the main market for its steel. The company's steel exports to the US are negligible and mainly concern high-quality products with a good market position. Most of Thyssenkrupp's sales in the US come from its trading business and the automotive supply business, with a significant share of local manufacturing for the local market. This focus on local production minimizes the risk of possible tariff risks and similar regulatory changes.

In Q1, Thyssenkrupp's steel division reported an 11% decline in sales, attributed primarily to lower spot-market price levels across all customer segments. Shipments decreased significantly, particularly in the automotive and industrial sectors, although there was some offsetting demand in packaging steel and grain-oriented electrical steel. The overall topline was negatively impacted, yet the division benefitted from significant positive effects, including compensation for electricity prices and further cost advantages, particularly in raw materials.

Thyssenkrupp is finalizing its business plan for Steel Europe and sees a 50/50 joint venture with EPCG as the logical next step towards the independence of Steel Europe.