France Reduced Steel Production by 20.8% y/y in July 2025

Overview of France’s Steel Production Decline in July 2025

dropped significantly by 20.8% year-on-year (y/y) in July 2025, reaching 800,000 tons, according to the latest data from the WorldSteel Association. Despite a monthly rebound of 12.5% compared to June, the sharp annual decline highlights persistent pressures facing the French steel industry. Over the first seven months of 2025, French steelmakers produced 5.79 million tons of steel, down 7.8% from the same period last year. This downward trend contrasts with the sector’s recovery in 2024, when steel output rose by 7.6% after a major 17.5% slump in 2023.

France now holds the 18th position in global steel production rankings, underscoring its moderate role within the competitive international steel market. Meanwhile, the broader European Union steel sector also contracted, with a 7% y/y decrease in July 2025, totaling 10.2 million tons, and a 3.8% fall for the January-July period.

French Steel Production Capacity and Market Dynamics

France’s steel industry consists of 11 major production facilities, including ArcelorMittal Dunkerque and ArcelorMittal Méditerranée Fos sur Mer, which have annual capacities of 2.25 million and 2.55 million tons respectively. The total steel production capacity in France stands at 12.09 million tons per year, considerably higher than the current output levels. This capacity underutilization results from several market factors, such as fluctuating demand, energy costs, and global trade challenges.

Despite monthly production increases in mid-2025, the French steel sector faces structural headwinds. Rising raw material prices, tighter environmental regulations, and competition from low-cost steel producers weigh heavily on local manufacturers. Furthermore, the EU’s overall steel production decline indicates regional supply chain constraints and shifting industrial priorities, impacting France’s steel output.

France Reduced Steel Production: Implications and Future Outlook

France reduced steel production by 20.8% in July 2025, marking a significant contraction amid a fragile market environment. The steep decline signals ongoing adjustments within the French and European steel industries. As France’s steelmakers navigate these challenges, maintaining competitiveness will require strategic investments in technology, energy efficiency, and sustainable production methods.

Looking ahead, policymakers and industry leaders must address the delicate balance between production capacity and market demand. Enhancing resilience against global economic volatility will be critical for stabilizing steel output. Moreover, innovation in battery materials and green steel technologies could open new avenues for growth, aligning with broader EU sustainability goals.

SuperMetalPrice Commentary:

The recent 20.8% drop in French steel production in July 2025 reflects both cyclical and structural challenges. France’s steel sector remains vulnerable to external shocks, including energy price fluctuations and international trade tensions. However, the industry’s robust production capacity offers a foundation for recovery if market conditions improve. Strategic shifts towards decarbonization and advanced materials could reposition France as a leader in sustainable steel and battery metals, ensuring long-term viability. SuperMetalPrice will continue monitoring these developments as the European metals market evolves.