France Metals Report 2015

BMI View: France's metals sector continues to be buffeted by global headwinds, including falling steelprices and increasing competition from low-cost overseas producers. We are expecting French steel outputto decline this year, following a series of contractions in recent years. While we forecast production tobegin growing again next years, overall output will remain significantly below levels seen 10 years ago.

Though still among the largest producers in Europe, France's steelmaking capabilities have recededconsiderably over the past. Standing at more than 20mn tonnes (20mnt) a year in the mid 2000s,in thedecade since, the country's total crude steel output has contracted by about 25% and is forecast to dip under16mnt this year following a year-on-year (y-o-y) decline of about 1.3%. Rising labour and production costsand falling competitiveness have combined with the effects of the global economic downturn and a sluggishFrench economy to sap investment as the country's larger producers have scaled back capacity. Inparticular, the future of France's steel sector remains clouded by uncertainty surrounding the future ofArcelorMittal's Florange steel mill, which, having been mothballed by the company in 2012, has morphedinto an high-stake political dispute. By 2013, a deal by the government to save the plant from closure with afive-year investment programme appeared to have failed due to technical difficulties, but it seemed unlikelythe government would carry through with its threat to nationalise the facility.


BMI Industry View
SWOT
Metals SWOT
Industry Forecast
Steel: Further Production Slump Highlights Long-Term Challenges
Table: Steel Production & Consumption (France 2012-2019)
Table: Steel Industry Historical Data (France 2006-2013)
Commodities Forecast
Global - Metals: Lower Costs And Weak Demand To Anchor Prices
Metal Price Weakness: Chinese Equity Slump & US Dollar Strength
US Dollar Strength To Anchor Weak Metal Prices
Steel: Oversupply To Subdue Prices Until 2017
Table: BMI Steel Price Forecast
Market Balance: Surplus To Persist Until 2017
Table: Steel Forecasts (2015-2019)
Competitive Landscape
Table: Metals Industry - Key Facilities
Table: Largest Listed European Listed Metals Producers
Company Profile
Global Company Strategy - Rio Tinto - Q4 2015
Company Overview
Company Strategy
Latest Financial Results
Table: Rio Tinto - Key Financial Data
Global Company Strategy - ArcelorMittal - Q2 2015
Company Overview
Company Strategy
Latest Financial Results
Company Details
Financial Data
Table: ArcelorMittal - Key Financial Data
Methodology
Cross Checks

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