8 April 2024 – The German steel group thyssenkrupp Steel Europe is regularly spinning the tale of job cuts through the political halls. This begs the question: When is the Group actually going to start behaving like a real commercial enterprise and earning money? And profits in the emerging markets are rising again significantly.
thyssenkrupp: And every day the groundhog greets the groundhog
Once again, in keeping with tradition, the German steel group thyssenkrupp is driving the story of job cuts through the media landscape. It’s a favourite story that the company usually uses when it needs to collect money from the state to continue financing its ailing steel division.
“Thyssenkrupp plans job cuts” – in the headlines since 2009
We also addressed the topic in one of our first articles from 2020. Thyssenkrupp Steel Europe once again threatened to consider cutting 5,000 more jobs.
Thyssenkrupp plans further job cuts of 5,000, steel sector at risk – steelnews.biz, 19 November 2020
The “we’re cutting jobs” threat is therefore a familiar narrative of the company that has been repeated continuously for more than a decade (e.g. as early as 2009, 2014, or in 2017 – there are many more examples). And where one may ask oneself how seriously this can be taken at all.
Need for blast furnace shutdown known for a long time
However, the fact that the necessary shutdown and decommissioning of blast furnaces in Germany and throughout Europe has been known for a long time is something that the company and the trade unions prefer not to mention. This is because steel manufacturers cannot achieve their alleged climate targets without shutting down blast furnaces. Which is why the crisis-ridden steel group will also receive a new Direct Reductions plant financed by taxpayers with billions in subsidies to replace its CO2-intensive blast furnaces in Duisburg.
Politicians should draw a line under the subsidy grave
In any case, German politicians should no longer ask themselves this question. And it would be better to cut the subsidies completely.
Instead, politicians should start asking the question: And when will thyssenkrupp finally start behaving like a commercial enterprise and earning money?
Emerging markets: profits are rising again
Corporate profits in the emerging markets fell by an average of a good five per cent in 2023, but a recovery is likely to have emerged in the first quarter of 2024. Analysts expect profits to increase by 18 per cent compared to the same quarter of the previous year. Asia – especially South Korea – is likely to be the driver with a 21 per cent increase, as demand for semiconductors has risen sharply. According to the consensus, finance, communications, IT and industry are the leading sectors with average growth rates of 22 to 31 per cent.
Asian Nickel up 2%
Nickel stocks on the Asian SHFE rose by a further 2 per cent in today’s trading session, having already recorded gains last week.
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