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Salzgitter AG: Analysts lower valuation – future of the steel industry at risk!
Salzgitter AG receives downgrade from DZ Bank to “Hold”. Analysts warn of challenges in the steel market and a slower recovery.
Salzgitter AG: Analysts lower valuation – future of the steel industry at risk!
Salzgitter AG is in the focus of investors and analysts after DZ Bank recently carried out a re-evaluation. On June 16, 2025, the financial institution downgraded the steel company's shares from “Buy” to “Hold”. Analyst Dirk Schlamp's expert assessment reflects the current market situation, which is characterized by a high level of uncertainty. In particular, the increasing import pressure and falling hot strip prices in Northern Europe are affecting the company, while the weak European economy is making the situation even more difficult. The fair value of the Salzgitter share was reduced from 28.00 euros to 21.50 euros, which highlights the worrying trends in the market. At the time of publication, the share was trading at EUR 19.39, up 0.41% on Tradegate
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These developments are in the context of a comprehensive transformation study that was carried out on behalf of the Steel Association. The steel industry is seen as crucial for value creation in Germany. The study shows that Germany as a steel location has reached a critical point. The need for green transformation is emphasized to both achieve climate goals and strengthen competitiveness. But the skepticism towards a successful transformation is noticeable among many customers in the steel industry. If this transformation is omitted, there could be serious consequences for investments and jobs in the downstream sectors.
Sustainability as a cornerstone
Salzgitter AG is committed to sustainability, which strengthens the group's competitiveness. The initiatives include the use of waste gases from steel production, which are used in our own power plants to generate electricity. Through these practical steps, the company shows that it has recognized the importance of using resources sparingly. The group's steels also benefit lightweight construction technology in various industries.
In order to do justice to demographic developments, Salzgitter AG has launched training and development programs for its young talent. Targeted health promotion measures strengthen the workforce and increase the attractiveness as an employer, which is considered essential for future success.
Challenges in the steel industry
Salzgitter AG must therefore position itself strategically in order to survive in a challenging market environment. Positive news is that 72% of steel customer companies expect to reduce their own carbon footprint through the transformation of the steel industry. But the path there is not only determined by the market, but also by external conditions.
Overall, it remains to be seen how the situation will develop and whether Salzgitter AG can overcome the challenge in order to remain attractive as an employer and to meet the requirements of the market. While DZ Bank currently rates the stock as “neutral”, future developments will be exciting, not only for investors, but for the entire steel industry in Germany.
Further information about Salzgitter AG can be found on the company website here and you can find out more about the upcoming transformation in the study this page inform.
Details about the downgrade from DZ Bank can be found at this link be read.