The Russian-Ukrainian war further pushes up steel prices! Thyssenkrupp is expected to make 14.4 billion a year
In early May, Germany’s ThyssenKrupp announced the data for the second fiscal quarter (January-March) of 2022, with sales of 10.6 billion euros, a year-on-year increase of 24%, originally expected to be 9.61 billion euros. Adjusted earnings before interest and taxes were 802 million euros (about 5.76 billion yuan), compared with the original expectation of 569 million euros.
This fiscal year is expected to make a profit of 2 billion euros (about 14.4 billion yuan), which is not a little bit higher than the previously expected 1.5-1.8 billion euros. Compared with the previous years, which were all losses, ThyssenKrupp has seen the glory of the past thanks to the soaring steel prices and the adjustment of the industrial structure in the past two years. It even makes sense to sell the Thyssen elevator.
In previous years, 70% of Ukrainian steel production was exported, and a large part was exported to Europe, where the famous Ethel Mittal company has its own iron ore and steel mills. In 2021, one-third of EU steel imports will come from Russia and Ukraine, with Russia 3.7 million tons and Ukraine 2.5 million tons, highly dependent on ports along the Black Sea.
The Russian-Ukrainian war has restricted Ukrainian steel production now, and unaffected steel mills cannot produce products. Russian steel exports have been sanctioned by Europe. Although some Ukrainian companies have increased their iron ore exports to Europe, it is a drop in the bucket for alleviating European steel tensions. , the price will naturally rise.
Steel is an energy-intensive industry, and now the price of natural gas and coal is soaring, raising costs. Of course, the above reasons can improve the operating income of iron and steel enterprises. At the end of March, the European rebar price rose to EUR 1,140/t, a 150% increase from the end of 2019; the price of hot rolled coil also hit a new historical record of EUR 1,400/t.
ThyssenKrupp can be said to be the most advanced technology in the world’s steel industry, improving the efficiency of coal combustion, increasing the use of hydrogen in the smelting process, and improving photovoltaic power generation.
To this end, it has established a new energy company, Wood Chlorine, to study the production of hydrogen from water using photovoltaic power generation. The application of new energy and new technologies has brought dividends to ThyssenKrupp, and profits have been greatly improved.
Of course, these steel products are produced at the terminal to bear the cost, and ultimately consumers need to pay.
