Thyssenkrupp pauses talks with Jindal Steel International over sale of its steel unit, citing changed conditions
Iran war-driven fuel shortages and rising input costs strain Indian steelmakers, with some units nearing shutdown
EU safeguard measures support recovery outlook, with analysts eyeing a rebound in early 2026
Thyssenkrupp Halts Jindal Talks as Fuel Crisis Batters Steel Industry
Deal talks stall as shifting assumptions, fuel shortages, and geopolitical disruptions add pressure on the global steel sector
Jindal Steel
Summary
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Thyssenkrupp has halted talks with Jindal Steel International about a likely sale of the German industrial group’s steel unit, the company said on Saturday.
Thyssenkrupp CEO Miguel Lopez has been pushing restructuring efforts at the company, and talks with Jindal Steel International were one such attempt. Jindal made an indicative bid for Thyssenkrupp Steel Europe last year, which led to months of due diligence and rounds of negotiations on a potential purchase.
“The original assumptions and prerequisites for a potential sale of Thyssenkrupp Steel have significantly changed in recent months,” the German company said, adding that the pause in negotiations was mutual.
Narendra Misra, director of Jindal’s European operations, said that despite the halt in talks, the companies “remain connected in friendship, and our shared goal remains to work on building low-carbon steel production in Europe.”
India’s Steel Industry Suffers from Iran War
Amid massive disruption in crude and LPG supply from West Asia, Indian industries are facing several challenges, including potentially weak global demand and a surge in input costs.
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According to a report by the World Economic Forum, published on April 21, the ripple effects of the Iran war are now seeping into the steel industry, where fuel shortages, supply chain disruptions, and rising input costs are impacting operations.
The report added that fuel shortages have already impacted major players, including JSW Steel units, with one unit on the brink of shutting down due to supply constraints.
ArcelorMittal Nippon Steel India is also affected by the significant gas shortage due to its reliance on gas-based direct reduced iron (DRI).
The industry has urged the government to intervene to resolve the gas crisis. When the LPG crisis was triggered, the government notified that gas suppliers must prioritise supply to households, which limited commercial fuel sales and challenged multiple industries.
EU Measures to Protect Its Steel Industry
As per reports, the EU’s steel sector has been boosted by safeguard measures to better protect the industry from cheap Asian imports, effectively lifting the sector from years of crisis that led to plant shutdowns and job cuts.
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According to a Reuters report, the sector is set for a rebound, and the first quarter of 2026 could reflect an inflection point, as per analysts, driven by higher steel prices in the bloc.