Thyssenkrupp idles capacity in Europe amid import surge

Thyssenkrupp idles capacity in Europe as imports reshape the market

Rising import volumes have pushed Thyssenkrupp to idle capacity in Europe, disrupting local electrical steel production. As a result, Thyssenkrupp Steel Europe plans temporary shutdowns at its Gelsenkirchen and Isbergues plants.

Meanwhile, the Isbergues facility will run at half capacity from January for at least four months. Management links the decision to rising low-priced imports from Asia.
As a result, European production now struggles to compete with below-cost import pricing.

Import pressure hits grain-oriented electrical steel

The European market faces intense pressure in grain-oriented electrical steel. Imports have tripled since 2022 and rose another 50 percent this year.
Therefore, customer orders now favor cheaper material over EU-made steel.

Thyssenkrupp reports severe underutilization across its European assets. Executives blame Chinese steel overcapacity and volatile energy costs.
Energy prices surged after Russia invaded Ukraine and sanctions followed.

Strategic importance of electrical steel remains intact

However, Thyssenkrupp still sees long-term value in grain-oriented electrical steel. A market study forecasts global demand could triple by 2050.
This material supports transformers, substations, and wind turbines.

CEO Marie Jaroni reaffirmed commitment to European production and skilled jobs. The company aims to protect 1,200 positions in Germany and France.
Therefore, Thyssenkrupp urges swift EU trade protection measures.

SuperMetalPrice Commentary:

Thyssenkrupp idles capacity in Europe to protect margins, not market relevance. Electrical steel underpins Europe’s energy transition and grid expansion.
As trade defenses strengthen, producers may restore utilization and pricing power.