A new supply agreement sees Henkel adopting low-CO₂ tinplate from Thyssenkrupp’s subsidiary, Rasselstein, for its adhesive packaging. While this highlights progress in sustainable steel, it represents a solitary bright spot against a backdrop of significant sector-wide pressures facing the industrial giant.
Market Headwinds Intensify
The broader steel market is confronting a dual crisis. On one front, traditional demand is weakening, particularly from the struggling automotive sector. Stellantis anticipates a staggering loss between 19 and 21 billion euros and is taking substantial write-downs on its electric vehicle strategy. This has direct repercussions for steel consumption. Furthermore, German auto exports to China have plummeted by over 54% since 2022, now standing at 13.6 billion euros. The machinery sector is also feeling the strain, with Germany’s export surplus in this area recently shrinking to 2.8 billion euros.
Simultaneously, the European steel industry is grappling with import pressures. The European Commission has initiated an investigation into rising imports of grain-oriented electrical steel, a key material for transformers, with a primary focus on shipments from China. If market distortions are confirmed, provisional protective measures could be implemented within four to five months. This probe comes at a critical time: EU crude steel production fell to 125.8 million tons in 2025, and the monthly steel trade deficit has recently widened to approximately two million tons.
The Sustainable Niche Offers Stability
In contrast to these challenges, Thyssenkrupp’s packaging steel segment is emerging as a relative bastion of stability. The deal with Henkel, facilitated by metal packaging manufacturer Pirlo, involves “bluemint” steel. This product is manufactured using high-quality scrap steel, which significantly reduces CO₂ emissions compared to conventionally produced tinplate. These emission reductions are certified by DNV.
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This initiative aligns with a long-term goal of achieving climate-neutral production by 2045. The path is bolstered by an existing recycling infrastructure, as 94.3% of tinplate packaging in Germany is already recycled.
Share Price Reflects the Broader Gloom
The cumulative weight of these market conditions is clearly reflected in Thyssenkrupp’s stock performance. The shares are trading just above their 52-week low and have declined by roughly 22% since the start of the year. The growth within its sustainable steel niche has so far proven insufficient to offset the structural weaknesses in core demand areas.
The potential for EU safeguard measures offers a glimmer of hope for relief, but whether they can alter the current trajectory will become clearer by summer. For now, the outlook remains decidedly mixed, with green innovation progressing against a canvas of grey economic prospects.
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