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German steel giant facing drastic changes?

It appears that Thyssenkrupp SE, a major German steel manufacturer, is facing significant changes. The company’s Executive Board, under pressure from Thyssenkrupp AG, is reportedly considering reorganising the company and potentially allowing the steel division to become independent. This move could involve reducing capacities, which would be a departure from the traditional approach but could help in reducing CO2 emissions in the steel industry, which is increasingly necessary.

The reduction in capacities could also lead to a shift in the labour market, allowing skilled workers to contribute value in other sectors where there is a shortage of talent. This move might signal a recognition that traditional blast furnace methods are becoming obsolete and that alternative approaches are needed.

Despite concerns about job losses, the demand for skilled labour in Germany remains high, with a significant number of job vacancies. Therefore, the fear of job losses at large companies like Thyssenkrupp may not have as much impact as it once did.

The German government, particularly the Federal Ministry of Economics and Climate Protection, may be influenced by such developments, as evidenced by their involvement in issues related to steel production and subsidies. However, the effectiveness of these actions in addressing the challenges facing the steel industry remains to be seen.

Meanwhile, there has been an increase in prices for stainless steel scrap in both China and Europe, which could have implications for the steel industry’s cost structure and competitiveness. This rise in prices follows a period where prices were kept artificially low, suggesting potential volatility in the market.

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