French steelmakers reported a significant 12% year-on-year (y/y) decline in steel output for August 2025, producing only 750,000 tons compared to the same month last year. This places France 19th in the WorldSteel Association’s global ranking of steel-producing nations. Month-over-month, output also slipped 6.3%, indicating consistent pressure on domestic production capacities.
From January to August 2025, France’s total steel production reached 6.54 million tons, down 8.3% y/y. The average monthly output dropped to 818,100 tons, a clear decline from 892,100 tons during the same period in 2024. The figures suggest that despite a recovery in 2024, the French steel sector is once again grappling with macroeconomic and demand-side headwinds.
In the broader EU context, steel production in August 2025 declined by 2.8% y/y to 8.8 million tons. Cumulatively for the year to date, the EU registered a 3.7% y/y decrease, producing 84.5 million tons between January and August. France’s steeper decline reflects regional difficulties but also points to localized challenges in energy costs, labor, and sluggish construction demand.
France Steel Sector: Structural Capacity vs. Real Output
France hosts 11 major steel enterprises with a combined annual production capacity of 12.09 million tons. Key players include ArcelorMittal Dunkerque (2.25 Mt) and ArcelorMittal Méditerranée Fos-sur-Mer (2.55 Mt). Others, like Celsa France Boucau and Ascometal Fos-sur-Mer, contribute significantly but continue to operate below optimal levels.
This capacity-versus-output gap is widening. In 2024, France managed to increase production by 7.6%, recovering from a 17.5% drop in 2023, ending the year at 10.76 million tons. However, the 2025 data suggests that last year’s rebound may have been temporary, with production again falling short of potential.
Meanwhile, monthly production averages have steadily declined: 896,250 tons in 2024, 833,000 tons in 2023, and over 1 million tons in 2022. This sustained contraction highlights deep-rooted challenges that short-term policy measures or demand surges have yet to overcome.
SuperMetalPrice Commentary
France’s 12% y/y drop in August 2025 underscores a troubling reversal after 2024’s modest rebound. Despite robust installed capacity, underutilization remains a concern. Energy costs, muted downstream demand (particularly in construction and automotive), and global steel oversupply are weighing heavily on French producers. If these structural inefficiencies persist, consolidation or policy-driven modernization may be the only paths to stabilize the industry. France’s position in the global steel hierarchy risks further erosion unless domestic production regains competitiveness.
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