Raw material prices have largely stabilised and moved sideways following the contract rollover on the SHFE and LME. Asian stainless steel prices remained robust amid rising demand. Is thyssenkrupp’s steel division facing further job cuts? US group plans takeover of Klöckner & Co.
Raw Material Prices Move Sideways
Raw material prices have largely stabilised and traded sideways following the contract rollover on the SHFE and LME. After showing notable volatility on Thursday due to announcements regarding reductions in Indonesian nickel ore mining quotas, LME nickel ended the session with only marginal losses.
Stainless Steel Prices Remain Robust
Despite the recent volatility in nickel prices, Asian stainless steel prices remained robust on Friday, posting modest gains. Prices for Chinese stainless steel scrap rose again by just over 1%.
Rising demand for stainless steel in China has recently led to declining inventories in social warehouses, which has also contributed to price stability.
Will Thyssenkrupp’s Steel Division Face Further Job Cuts?
Indian steel producer Jindal is seeking to acquire the steel division of Germany’s industrial group thyssenkrupp. Talks and negotiations between the two companies are currently ongoing.
However, the transaction may once again be on shaky ground. According to German media reports, Jindal is said to be making the reduction of up to 3,000 additional jobs a condition for the takeover.
Only in early December 2025, thyssenkrupp Steel Europe and the trade union IG Metall agreed on a restructuring collective agreement under which 11,000 of the company’s approximately 26,000 jobs are to be cut or spun off.
The reported demand, neither confirmed nor denied by thyssenkrupp or Jindal, has triggered strong protests from IG Metall. The union has already warned the Indian group that further job cuts would not be acceptable.
Transition to “Greener Steel” Requires Significantly Fewer Steel Workers
Thyssenkrupp is working to shift part of its production away from the blast furnace route, which is considered outdated and carbon-intensive, towards cleaner steel production using the direct reduced iron (DRI) process.
Both the DRI process and steelmaking via electric arc furnaces (EAF) are fundamentally far less labour-intensive than the traditional blast furnace-basic oxygen furnace (BF-BOF) route. By comparison, labour costs per tonne of steel in Europe are more than 50% lower on the EAF route than on the BF-BOF route.
US Group Plans Takeover of Klöckner & Co.
US metals processor Worthington Steel plans to acquire German steel and metals distributor Klöckner & Co. The company has submitted a voluntary public takeover offer of EUR 11 per share, valuing the transaction at around EUR 2.1 billion.
Klöckner’s management board and supervisory board have recommended accepting the offer, which is subject to a minimum acceptance threshold of 65%.
Klöckner CEO Guido Kerkhoff described the merger as a strategic step toward a stronger focus on higher-value products and services, while Worthington CEO Geoff Gilmore referred to it as a transformative growth move. Founded in 1955 and headquartered in Columbus, Worthington Steel most recently generated revenues of USD 3.8 billion; following the acquisition, revenues are expected to nearly triple.
