The steel division of Germany’s Thyssenkrupp has seen further improvements thanks to strong demand and rising prices.
The company said the primary driver for steel production was its core customer group, the automotive industry, although demand has been somewhat marred by components and logistics concerns in the automotive supply chain.
“There is a muffled dynamic here. We know about stops at Ford and other companies. We don’t think the recall data will be the same as before, ”Keisberg said at a press conference on Thyssenkrupp’s Q2 results (Jan-Mar). “Original equipment manufacturers cannot produce as much as they can sell, but we believe this will increase over time.”
Regarding the expected spin-off of the steel mill after several attempts to find an outside partner or buyer, Keisberg said there would be no timetable for that, but it won’t happen this year. “There is no time pressure here,” he said.
The sale of Italian stainless steel producer AS Terni has continued and Thyssenkrupp has said it will be in talks with several interested parties. Italian Marcegaglia said in April that it would be “firmly” interested in acquiring Terni.
Thyssenkrupp has already cut 5,400 out of a planned 12,000 divisional job cuts and does not currently expect additional jobs to be needed.
Thyssenkkrupp will maintain a plan to replace the lining of one of its blast furnaces from July and will pre-fabricate and procure materials for approximately six months when the blast furnace is shut down.
Market participants said they expect the reflining and preparation for production to exacerbate the shortage of steel in the European market.