German steelmaker Thyssenkrupp is moderately positive about the outlook for global steel demand in 2026, although demand will depend on geopolitical tensions, energy prices and the performance of steel-consuming industries, the company said. Thyssenkrupp's forecast does not yet reflect the potential impact of new EU steel safeguard measures that took effect on 1 July.
Global steel demand is expected to increase by 0.7pc on the year in 2026, despite a contraction in consumption in China, as demand is set to strengthen in the EU and the US.
In the automotive sector, Thyssenkrupp expects output to continue declining. "At present, a year-on-year decline in production volumes is expected for the full fiscal year 2025-26. The main drivers are oil price trends in combination with temporary shipping restrictions in the strait of Hormuz, as well as weaker conditions in the Chinese market," the company said. By contrast, Thyssenkrupp expects machinery sales to increase by 1.7pc, supported by positive production trends in the EU, China and the US last year.
Thyssenkrupp Steel Europe continues to reduce its cost base, cutting its workforce by 3pc year on year to 25,078 by the end of June, while reducing its investments by 42pc to €265mn ($305mn) in the first nine months of the 2025-26 fiscal year.
Its investments were lower than a year earlier partly because funding received for its direct reduction (DR) plant resulted in a net negative investment. Construction of the plant's DR tower continues, while pre-assembly of the site's two smelters is nearly complete. "Intensive preparations are currently being made for the modernisation of continuous caster 3 in Duisburg, scheduled to start in the fourth quarter of fiscal year 2025-26," the company said.
Thyssenkrupp Steel Europe's order intake rose above year-earlier levels in the latest reporting period, supported by higher orders from industrial and trading customers and stable orders in the automotive sector. Sales remained below year-earlier levels, reflecting the persistently weak macroeconomic environment.
The division's adjusted earnings strengthened despite lower revenue, supported by a hiring freeze, restructuring measures, efficiency gains in production and logistics, and lower raw material costs. These factors more than offset weaker sales, Thyssenkrupp said.
Thyssenkrupp completed the transfer of its 50pc stake in Huttenwerke Krupp Mannesmann (HKM) to German steelmaker Salzgitter on 9 July, for a symbolic price of €1. The former shareholders will inject fresh equity into HKM, with Thyssenkrupp Steel's contribution expected to be in the low-to-mid three-digit million-euro range. As a result of the HKM transaction, Thyssenkrupp expects an additional disposal loss in the low three-digit million-euro range in the fourth quarter of its 2025-26 fiscal year.
Thyssenkrupp Steel Europe remained profitable in the third quarter and over the first nine months of the 2025-26 fiscal year, although its nine-month earnings before interest and taxes (Ebit) fell to €80mn from €251mn a year earlier. The firm's third-quarter Ebit rose to €185mn from €64mn, supported by restructuring measures and lower raw material costs.
