EU Tariffs Boost Steel Stocks; Thyssenkrupp Shifts Focus
The EU has announced new tariffs on steel imports exceeding quotas, a move that has boosted European steel stocks. Stéphane Séjourné, the EU Industry Commissioner, revealed the decision, which aims to protect the bloc's steel industry from oversupply.
Following the announcement, European steel stocks have surged. Salzgitter shares have risen by approximately nine percent, while Thyssenkrupp's stock has increased by around four percent. ArcelorMittal, another major steel producer, has seen its shares rise by about three percent.
Thyssenkrupp, a multinational conglomerate, will now focus more on its steel business after spinning off its elevator division. This strategic shift comes as the steel industry faces a cyclical crisis. Meanwhile, TKMS, Thyssenkrupp's marine division, has successfully concluded a capital market day ahead of its initial public offering (IPO).
Jürgen Kerner of IG Metall, a major German trade union, has welcomed the EU's tariff announcement. He expects the German government to provide solutions for the steel industry and its employees. IG Metall has called on the government to act decisively to stabilize the steel industry and strengthen Germany's industrial location.
The EU's tariff announcement has had an immediate positive impact on European steel stocks. As the industry faces cyclical challenges, Thyssenkrupp's strategic focus shift and TKMS's successful IPO indicate a proactive approach. Trade unions and industry experts await the German government's response to support the sector and its workforce.
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