ArcelorMittal to invest EUR1.3bn in single Dunkirk EAF
ArcelorMittal will invest EUR1.3bn in installing replacement electric-arc steelmaking capacities at its Dunkirk plant, scheduled for first operations in 2029, the company announced 10 February.
According to the steelmaker, the new 2 mt electric-arc furnace (EAF) will be capable of producing steel with “three times less CO2 than a blast furnace,” at 0.6t CO2e/t, and will operate on a mixture of scrap, direct-reduced iron/hot-briquetted iron (DRI/HBI), and pig iron. Half of the EUR1.3bn investment will be financed publicly with Energy Efficiency Certificates.
France’s President, Emmanuel Macron, was present for the announcement at the French site, accompanied by company leadership.
“I am delighted we are now able to launch this €1.3 billion investment in Dunkirk, which underscores our Group’s long-term commitment in France,” said CEO Aditya Mittal in a press statement. “I must thank President Macron and the French government who – very early on – understood the challenges the European steel industry was facing.”
Mittal’s comments reference steelmakers’ long-cited issues with the competitiveness of the European steel sector against global pressures, which the European Commission is attempting to remedy with new industrial support policies, and regulatory simplification. Policies initially proposed by the Commission in last year’s Steel and Metals Action Plan – such as new long-term steel trade protections, the implementation of the Carbon Border Adjustment Mechanism (CBAM), and the upcoming Industrial Accelerator Act (IAA) – are intended to better support the ‘investment case’ for industrial decarbonisation, which for European steelmaking, is largely characterized by the transition from blast-furnace to basic-oxygen furnace (BF-BOF), to EAF steelmaking fed by scrap and direct-reduced iron (DRI).
In its press release, ArcelorMittal states that it “appreciates the progress made by the European Commission to better protect the European steel industry,” and “expects [proposed measures] to restore fair and competitive conditions in the European steel market, thus securing a sustainable future for steel production within the European Union.”
ArcelorMittal has suspended the majority of its European decarbonisation projects, citing aforementioned burdens on competitiveness, as illustrated in McCloskey’s recent Global Green Steel Profile. Postponement to the renovations at Dunkirk specifically related to the high cost of gas and hydrogen in Europe, as stated by company leadership in the French Parliament last year.
The steelmaker’s latest announcement on its decarbonisation plan appears reduced from its initial scope, confirming the construction of only a single EAF, as opposed to previous commitments to construct two EAFs, and a 2.5 mt/y DRI plant. The two EAFs were originally scheduled for initial operations in 2027.
Secondary steelmaking sources have suggested that this indicates ArcelorMittal is abandoning its DRI investment plans and will instead import DRI/HBI to facilitate decoupled steelmaking.
McCloskey’s recent coverage of the leaked draft of the EU’s upcoming Industrial Accelerator Act (IAA) indicates that the European Commission is planning to introduce a ‘sliding scale’ into its new green steel definition, represented by a voluntary low-carbon label that gives a better ‘green classification’ the lower the share of constituent scrap. This could give DRI-EAF steel an advantage over the EU’s existing scrap-EAF production in achieving equivalent, or even improved classifications, despite the lower emissions profile of high-percentage scrap-fed steels.
The EU’s independent EAF steelmakers have largely opposed the inclusion of the sliding scale, fearing that it will give integrated steelmakers undue access to secondary steelmakers’ core construction sector demand as low-carbon markets become increasingly (and at times inconsistently) regulated by instruments such as the IAA.
Despite the fact that the thrust of the European Commission’s regulatory efforts in the steel sector are to protect the ‘investment case’ for decarbonisation without undermining industrial resilience, some market sources have argued that the current trajectory of steel policy across CBAM, the new permanent steel quotas, and green steel standardisation are instead facilitating the gradual decoupling of iron and steelmaking on the continent.
These sources allege that integrated steelmakers are lobbying for ‘sliding scale’ based green standards of universal scope in order to consolidate their access to future domestic low-carbon demand, supporting a limited transition to decoupled EAF steelmaking, while simultaneously closing the market to downstream imports but retaining access to low-cost DRI/HBI from abroad. If true, this would threaten to off-shore primary steel production, undermining the Commission’s push for industrial resilience, and potentially stimulating domestic steel price inflation beyond what consuming industries can tolerate.
The French Democratic Confederation of Labour (CFDT) – France’s largest trade union by membership – boycotted Macron’s visit to the Dunkirk site on similar factors, describing the announcement as “political staging.”
“This announcement is a smoke screen and will not suffice; we are very far from the initial plan […] while ArcelorMittal has obtained everything it wanted!” stated the union in an associated press release. “Behind the hollow words and the promises, there are thousands of jobs threatened and eliminated, weakened industrial basins, and shattered lives.”
ArcelorMittal released its full-year 2025 results this week, reporting $3.2bn net income, and foreseeing an improved outlook for European steel prices and demand in 2026.
ArcelorMittal has confirmed a EUR 1.3 billion electric arc furnace investment in Dunkirk
ArcelorMittal plans restart at Fos-sur-Mer in December after site incident
Following the October 8 fire incident at its Fos-sur-Mer facility in France, ArcelorMittal has confirmed that the immediate priority remains securing site operations, which is expected to be completed by the end of the week.
The company stated that it is working closely with local authorities and internal teams to ensure all safety and environmental protocols are met before any production activities resume.
Due to the incident, several operations have been temporarily modified. The blast furnace and steelworks remain shut down, while the urban chain has extended its scheduled maintenance shutdown. In the meantime, the coking plant continues operations using its own gas and the belt train, finishing, and logistics departments remain active to process and ship existing inventory.
ArcelorMittal’s site teams are currently dismantling and rebuilding damaged infrastructure. Based on current analysis and material supply timelines, the company aims to partially restart the steelworks in early December.
A full return to normal operations is still under review and will depend on repair progress and supply chain stability.
To reduce disruption, some orders have been transferred to other ArcelorMittal plants across Europe, and slabs are being sourced externally to cover end-of-year production needs.
Steel Derivatives issue highlighted at FFDM’s 18th convention in Paris
EUROMETAL had the pleasure of participating in the 18th Convention of the FFDM (Fédération française de la distribution et de la transformation des métaux), held on Thursday, 25 September 2025, in Paris at the Tour MGEN Auditorium.
Under the theme “Tempête géopolitique : garder le cap” (“Geopolitical storm: staying on course”), the convention brought together over 200 participants from across the French metals value chain, including distributors, processors, industry leaders, economists, and policymakers.
During the official keynote address, FFDM President Laurent Noirclerc gave special attention to EUROMETAL’s recent initiative to identify steel derivative products flooding the European market — often bypassing safeguard measures, undermining ecological objectives, and ultimately threatening the integrity of the EU distribution chain. His endorsement reinforces the growing recognition that derivative imports are a critical blind spot in current EU trade and environmental regulations.
The day featured a series of high-level presentations, including insights from:
- Sylvie Bermann, former French Ambassador to China, the UK, and Russia, on the shifting global order.
- Arnaud Montebourg, former French Minister of Economy, on reindustrialisation and “Made in France” strategy.
- Philippe Dessertine, economist, on new paths to growth amid uncertainty.
- Experts from the French Building Federation (FFB) and Allianz Trade provided outlooks on construction and global risk.
The event concluded with a networking cruise along the Seine aboard the Paquebot des Yachts de Paris, fostering further exchange between participants.
French longs consumption stays weak on negative sentiment
The post-summer holiday lull in the French steel market is dragging on, with uncertainty and political instability weighing heavily on sentiment.
Market participants report little appetite for new purchasing, as buyers continue to adopt a cautious attitude. Transaction prices remain largely unchanged from early-September levels, reflecting weak demand and the lack of any recovery signs, Kallanish notes.
“Steel processors and distributors are not managing to make any money, as there are practically no margins. Companies are chasing volumes and fighting, and negotiations with producers are complicated,” one market source comments. Producers of both long and flat products are attempting to push through price increases, yet buyers remain sceptical due to sluggish consumption.
A producer notes that inventories are slow to deplete, leading to stock accumulation too early in the year. Stock levels normally rise towards year-end as buyers replenish inventories before the Christmas break. However, the current slow pace of demand suggests that stock build-up is happening prematurely.
French buyers, particularly of sections, are resisting ArcelorMittal’s latest €30/tonne ($35/t) hike in European longs quotes. The French longs market remains subdued. Foreign merchant bar producers have returned with aggressive offers, putting further pressure on domestic suppliers. Merchant bar prices are currently flat at €220-230/t base delivered, excluding size extras.
Rebar values, after a brief softening at the end of last month, remain unchanged at around €600/t delivered on average, with sales limited to relatively small volumes and buyers reporting full stocks that are depleting very slowly.
Sections are similarly stable at €750/t delivered, although mills are attempting to lift offers to €770-780/t. Many customers covered their needs ahead of the proposed hikes and are in no rush to place orders. With consumption still weak, market sources doubt producers will succeed in enforcing higher prices.
Scrap prices in western Europe decreased this month by €10/t and are forecast to decrease again in October following the latest drop in Turkish scrap values.
Natalia Capra France
France’s steel product export value down 5.1 percent in H1 2025
According to the statistics released by the French Ministry of Economy, Finance and Industry, in the January-June period this year, France’s basic steel product and ferroalloy exports amounted to a value of €4.91 billion, decreasing by 5.1 percent year on year and imports amounted to a value of €4.65 billion, decreasing by 12.7 percent year on year.
In the given period, France exported €643.35 million of steel pipes and tubes – down 7.2 percent, €228.62 million of cold rolled steel bars – down by one percent, €326.05 million of cold rolled steel strip – down 17.9 percent, €150.21 million of cold drawn wire – decreasing by 14.6 percent, and €456.91 million of metal structures and parts – rising by 1.8 percent, all compared to the same month of 2024.
France imported €1.02 billion of steel pipes and tubes – down 4.4 percent, €273.65 million of cold rolled steel bars – up by 5.9 percent, €341.47 million of cold rolled steel strip – dropping by 8.9 percent, €251.99 million of cold drawn wire – falling by 4.6 percent, and €1.32 billion of metal structures and parts – decreasing by 6.8 percent, all compared to the same period of 2024.
French post-holiday market reopens sluggishly, prices mostly flat
The French steel market remains subdued after the August holiday period. Prices are largely unchanged from July levels, with buyers seeing no justification for increases at this stage, Kallanish notes.
Some long product prices weakened over the summer, driven largely by competitive imports from Spain and Italy, particularly Spanish merchant bar and Italian rebar. According to one distributor, Italian rebar has at times reached southern France at discounts of up to €50/tonne ($58/t) compared to domestic prices.
French buyers are resisting ArcelorMittal’s latest, €30/t hike on European long products, as downstream demand is showing no sign of improvement. Market sentiment remains weak, with companies discouraged by sluggish steel consumption and a concerning political uncertainty which limits any investment plans.
Following a seasonally slow August, conditions are described as particularly challenging, with only “a handful of hard-fought transactions” taking place, according to one market observer.
Market participants expect prices to remain broadly stable, with scrap values likely to soften slightly. Profitability remains a key concern. Producers have announced a €20/t increase on tubes and sheets, aligning with the recent uptick in coil prices and anticipated rises on flat products driven by CBAM and the safeguard replacement measure. Buyers are currently resisting these price hike attempts.
In the longs segment, foreign merchant bar producers who attempted price increases in France in recent months have lost orders. Buyers expect this trend to persist. Current merchant bar quotes stand at €220-230/t base delivered for larger volumes, excluding size extras. Rebar prices have also softened by around €10-15/t since mid-July. They are now at €590-610/t delivered, depending on volume. Sections prices remain stable at €760/t delivered.
A major buyer reports he will not place orders for long products in France at higher prices, citing weak downstream demand and tight margins. While volumes are “not that bad”, low profitability is driving many firms to pressure producers to maintain values.
Natalia Capra France
France’s steel trade weakens in early 2025, while metal industry output edges up in June
In the January–May 2025 period, France recorded declines in both steel product imports and exports, according to data from the French Ministry of Economy, Finance and Industry.
Basic steel product and ferroalloy imports totaled €3.91 billion, down 12.7% year on year. Key categories included €852 million of steel pipes and tubes (-6.3%), €225.18 million of cold rolled steel bars (+3.9%), €283.34 million of cold rolled steel strip (-9.7%), €211.73 million of cold drawn wire (-3.8%), and €1.11 billion of metal structures and parts (-5.4%).
Exports of basic steel products and ferroalloys reached €4.01 billion in the same period, representing a 4.9% drop compared to the previous year. France shipped €524.89 million of steel pipes and tubes (-8.9%), €189.03 million of cold rolled steel bars (-0.9%), €265.54 million of cold rolled steel strip (-23.9%), €124.47 million of cold drawn wire (-13.9%), and €372.02 million of metal structures and parts (-0.6%).
Meanwhile, the latest figures from France’s National Institute of Statistics and Economic Studies (INSEE) show that manufacturing output in June 2025 increased 3.5% month on month, following a 1.2% decline in May. In the April–June quarter, manufacturing output was up 0.2% year on year and 0.7% compared to the previous quarter.
Production in the manufacture of basic metals and fabricated metal products rose 0.2% in June after falling 2.4% in May. The motor vehicles, trailers and semi-trailers sector saw a 1.1% monthly increase in June, reversing a 1.9% drop in May. In contrast, construction output fell 0.4% month on month in June, following a 0.5% decrease in May, and was 1.1% lower in the April–June quarter compared to the first quarter.
France’s steel trade declines in Q1 2025
According to data released by the French Ministry of Economy, Finance and Industry, both imports and exports of basic steel products and ferroalloys in France declined in value during the first quarter of 2025 compared to the same period in 2024.
From January to March 2025, France imported basic steel products and ferroalloys worth €2.36 billion, representing a year-on-year decrease of 11.1 percent. Within this total, imports of steel pipes and tubes amounted to €510.1 million, down 6.8 percent compared to the same period last year. Imports of cold rolled steel bars fell by 3.11 percent to €131.14 million, while cold rolled steel strip imports declined by 8.3 percent to €174.2 million. Cold drawn wire imports decreased by 3.5 percent to €127.2 million, and metal structures and parts saw a 5 percent drop, reaching €676.9 million.
On the export side, France shipped out basic steel products and ferroalloys worth €2.42 billion in the first quarter, marking a 5.1 percent decline year on year. Steel pipe and tube exports amounted to €318.4 million, down 6.44 percent. Cold rolled steel bar exports dropped by 5.4 percent to €112.1 million, while exports of cold rolled steel strip saw a sharp decline of 30.4 percent, totaling €152.3 million. Cold drawn wire exports were down 10.4 percent to €77 million, and exports of metal structures and parts slightly decreased by 0.12 percent to €222 million.
The overall decline in both import and export values reflects ongoing pressure on the French steel sector, driven by softer demand, market volatility, and cost-related challenges across Europe and globally.
France’s steel trade value declines in Jan–Feb
According to the statistics released by the French Ministry of Economy, Finance and Industry, in the January-February period this year France’s basic steel product and ferroalloy imports amounted to a value of €1.54 billion, decreasing by 12.4 percent year on year.
In the given period, France imported €329.28 million of steel pipes and tubes – down 9.6 percent, €87.73 million of cold rolled steel bars – down by 0.9 percent, €114.09 million of cold rolled steel strip – dropping by 10.5 percent, €82.37 million of cold drawn wire – falling by 6.6 percent, and €431.13 million of metal structures and parts – decreasing by 8.3 percent, all compared to the same period of 2024.
Exports
In the January-February period, France’s basic steel product and ferroalloy exports amounted to a value of €1.62 billion, decreasing by 3.8 percent year on year.
In the given period, France exported €210.28 million of steel pipes and tubes – down 5.5 percent, €75.12 million of cold rolled steel bars – down by 4.9 percent, €94.43 million of cold rolled steel strip – down 32.3 percent, €50.55 million of cold drawn wire – decreasing by 10.9 percent, and €141.13 million of metal structures and parts – up by 1.9 percent, all compared to the same period of 2024.