FRANKFURT (dpa-AFX) - Thyssenkrupp shares benefited on Tuesday from sector-wide momentum and a press report detailing the potential sale of its steel division to Indian conglomerate Jindal. The price of the MDax-listed stock rose by 4.6 percent in the morning to €10.04, recovering above the €10 mark after weakness the previous day and moving back toward the slightly higher October peak.
Steel stocks were generally in demand on Wednesday, as evidenced by Salzgitter rising 2.3 percent and ArcelorMittal climbing three percent. There has been optimism in the sector for some time that the industry could benefit in 2026 from protective measures by the European Union against cheap imports from China. Added to this is speculation fueled by billions in German infrastructure spending and the potential reconstruction of Ukraine, should Russia finally halt its war of aggression.
US bank Morgan Stanley also issued a positive note on ArcelorMittal. The analysts upgraded the stock to "Overweight," calling it a "Top Pick"—a sector favorite. The share price subsequently reached its highest level in 14 years. In his report, analyst Alain Gabriel sees further upside for the steel sector due to measures designed to make European production more competitive. While the expert raised his price targets for Thyssenkrupp and Salzgitter as well, he remains negative on both with an "Underweight" rating.
Regarding Thyssenkrupp, news agency Reuters reported on Wednesday, citing sources, that a viable solution for the complex sale of the steel division to Jindal is still being sought. According to the report, Jindal could acquire a 60 percent stake in Thyssenkrupp Steel Europe in an initial step. Depending on the progress of restructuring, one or two additional tranches could follow later, the agency's sources said. A critical issue remains the securing of pension liabilities.
According to one trader, the sale of the steel unit is gradually taking more concrete shape after years of unsuccessful attempts to find a buyer. However, to further fuel speculation, a concrete confirmation is still needed./tih/zb/nas/mis
