Europe's troubled steelmakers finally head for long-craved deals

London

EUROPE'S wounded steel industry might be about to get the deals that it has been crying out for.

The latest hope for the sector emerged last Friday as the continent's second biggest producer Tata Steel Ltd said that it was in talks with third-ranked Thyssenkrupp AG about a possible joint venture. That closely follows largest producer Arcelor- Mittal's move to take control of Ilva, Europe's top steel plant.

Such deals may help resolve the industry's most enduring problem: there are too many mills making too much material. The oversupply stops plants from running at full capacity and me…