Synopsis: thyssenkrupp Steel Europe's Supervisory Board has been informed about the tumultuous steel market's new developments. Unexpected economic downturns in Germany and rising raw material costs, combined with intense competition from Chinese steel producers, have dimmed earnings expectations. The influx of steel products from non-European countries, free from CO₂ emission costs, poses a significant challenge. The company aims to address these challenges and remains committed to its goals. Talks with Czech investor Kretinsky about a stake in thyssenkrupp Steel Europe are unaffected by the market situation.Article: In a recent meeting, the Supervisory Board of thyssenkrupp Steel Europe AG received an update on the shifting dynamics of the steel market. The Executive Board of the Steel division highlighted several key factors that have significantly impacted the industry's landscape. These include an unexpected economic downturn in Germany and other sales markets, escalating raw material costs, soaring energy expenses, and fierce competition from Chinese steel producers. These challenges have collectively cast a shadow on the previously optimistic earnings expectations.Notably, the steel industry has endured its share of ups and downs, characterized by sharp fluctuations in steel prices. However, the current situation is taking on a more severe dimension due to the unrestricted influx of steel products from non-European countries, especially in Asia. These foreign products are not burdened with the same costs related to CO₂ emissions, nor are they subject to the same conditions in raw material markets as their European counterparts.Sigmar Gabriel, Chairman of the Supervisory Board of thyssenkrupp Steel Europe AG, expressed concerns about the market situation. He emphasized the impact of purchasing essential raw materials, such as coal, from Russia at prices lower than those on the global market. This disparity in competition is a growing issue that needs addressing. Gabriel stressed the necessity for the European Union to implement measures at the EU borders to ensure fair competition.Simultaneously, thyssenkrupp Steel is dedicated to leveraging its economic and technological resources to meet its objectives. The company's Executive Board presented initial proposals for enhancing earnings under these challenging conditions, with further refinements expected before the next Supervisory Board meeting. It's believed that through collective efforts, these challenges can be successfully navigated.Regarding ongoing discussions with Czech investor Kretinsky, who is expressing interest in acquiring a stake in thyssenkrupp Steel Europe AG, Gabriel stated that these market fluctuations should not impact the negotiations. He underlined the need for transparency between thyssenkrupp AG, the entity handling the negotiations, and the interested party. The steel industry is no stranger to occasional disruptions, and it requires an ownership structure capable of weathering financial downturns. Gabriel expressed confidence in Mr. Kretinsky's understanding of this.Conclusion: The steel market faces new and formidable challenges, including economic downturns, rising costs, and intense competition, particularly from non-European countries. The unrestricted flow of steel products from these regions, free from emissions costs, poses a significant threat. Thyssenkrupp Steel Europe AG remains committed to its objectives and is actively exploring ways to address these challenges. Ongoing negotiations with investor Kretinsky remain unaffected, and transparency is key as the company navigates these market fluctuations.
Synopsis: thyssenkrupp Steel Europe's Supervisory Board has been informed about the tumultuous steel market's new developments. Unexpected economic downturns in Germany and rising raw material costs, combined with intense competition from Chinese steel producers, have dimmed earnings expectations. The influx of steel products from non-European countries, free from CO₂ emission costs, poses a significant challenge. The company aims to address these challenges and remains committed to its goals. Talks with Czech investor Kretinsky about a stake in thyssenkrupp Steel Europe are unaffected by the market situation.Article: In a recent meeting, the Supervisory Board of thyssenkrupp Steel Europe AG received an update on the shifting dynamics of the steel market. The Executive Board of the Steel division highlighted several key factors that have significantly impacted the industry's landscape. These include an unexpected economic downturn in Germany and other sales markets, escalating raw material costs, soaring energy expenses, and fierce competition from Chinese steel producers. These challenges have collectively cast a shadow on the previously optimistic earnings expectations.Notably, the steel industry has endured its share of ups and downs, characterized by sharp fluctuations in steel prices. However, the current situation is taking on a more severe dimension due to the unrestricted influx of steel products from non-European countries, especially in Asia. These foreign products are not burdened with the same costs related to CO₂ emissions, nor are they subject to the same conditions in raw material markets as their European counterparts.Sigmar Gabriel, Chairman of the Supervisory Board of thyssenkrupp Steel Europe AG, expressed concerns about the market situation. He emphasized the impact of purchasing essential raw materials, such as coal, from Russia at prices lower than those on the global market. This disparity in competition is a growing issue that needs addressing. Gabriel stressed the necessity for the European Union to implement measures at the EU borders to ensure fair competition.Simultaneously, thyssenkrupp Steel is dedicated to leveraging its economic and technological resources to meet its objectives. The company's Executive Board presented initial proposals for enhancing earnings under these challenging conditions, with further refinements expected before the next Supervisory Board meeting. It's believed that through collective efforts, these challenges can be successfully navigated.Regarding ongoing discussions with Czech investor Kretinsky, who is expressing interest in acquiring a stake in thyssenkrupp Steel Europe AG, Gabriel stated that these market fluctuations should not impact the negotiations. He underlined the need for transparency between thyssenkrupp AG, the entity handling the negotiations, and the interested party. The steel industry is no stranger to occasional disruptions, and it requires an ownership structure capable of weathering financial downturns. Gabriel expressed confidence in Mr. Kretinsky's understanding of this.Conclusion: The steel market faces new and formidable challenges, including economic downturns, rising costs, and intense competition, particularly from non-European countries. The unrestricted flow of steel products from these regions, free from emissions costs, poses a significant threat. Thyssenkrupp Steel Europe AG remains committed to its objectives and is actively exploring ways to address these challenges. Ongoing negotiations with investor Kretinsky remain unaffected, and transparency is key as the company navigates these market fluctuations.
