Iron & Steel Manufacturing in France - Market Size, Industry Analysis, Trends and Forecasts (2025-2029)

Iron & Steel Manufacturing in France industry analysis

The Iron and Steel Manufacturing industry, which is mostly located in the Fos-sur-Mer and Dunkirk areas, plays a key role in the French economy as a supplier of pig iron, steel and ferroalloys. This makes the industry highly dependent on French production volumes. In recent years, the industry has experienced a high degree of revenue volatility due to skyrocketing metal prices and changing market demands. According to the World Steel Association, steel prices rose by up to 110% in 2021 due to solid pent-up demand and shortages of raw materials and intermediates after the COVID-19 outbreak in 2020, pushing up manufacturers’ revenue. Following this, Russia’s invasion of Ukraine in February 2022 led to a sharp rise in electricity and gas prices, which drove metal prices even higher. Falling steel prices and declining demand for metal products have led to a decline in sales since 2023. Climbing interest rates also played a part – the key interest rate in France reached an all-time high of 4.5% in 2023, dampening demand for steel products in the construction sector as borrowing costs built up.

Trends and Insights

• COVID-19 cooled the steel market. Demand for steel from manufacturing and construction plummeted during the pandemic. However, demand bounced back following the return of manufacturing and construction activity.
• Major markets for bar steel include construction and also mechanical engineering. Revenue generated from bar steel has trended upwards, driven by the resurgence in the construction sector.
• Strong strategies drive market share in steel. Fewer giants dominate Europe's steel scene thanks to economies of scale, strategic acquisitions and leading the green game. Success hinges on cost-efficiency, smart deals and being an eco-conscious pioneer.