France Metals Report Q2 2012 - New Market Report Now Available
New Materials market report from Business Monitor International: "France Metals Report Q2 2012"
Boston, MA -- (SBWire) -- 06/13/2012 --The French steel industry held up well in 2011, but 2012 promises to be a more challenging year with the automotive and construction industries reporting a contraction in activity in Q112, according to BMI's latest France Metals Report.
In 2011 France's crude steel production amounted to 15.78mn tonnes (mnt), a rise of 2.3% year-on-year (y-o-y), which was slightly below the 15.82mn tonnes we had forecast. EAF output, which contributes around a third of steelmaking capacity, led growth with blast furnace production remaining sluggish. EAF production rose by 9.4%, while steel production with blast furnace production declined 1.6%. However, output was still 18% below 2007 levels. Production was supported by household spending and export growth, although these diminished as the year progressed. In the first two months of 2011, crude steel output was up 10.4% y-o-y to 2.66mn tonnes with indications that manufacturing was stabilising, although the automotive and construction industries were contracting.
View Full Report Details and Table of Contents
ArcelorMittal's management closed its first blast furnace at Florange in July 2011 and the second furnace from October 2011 in response to sluggish growth in European steel consumption and overcapacity. The company also anticipated lower demand going into 2012. It is unlikely that either plant at the site will resume operations until mid-2012 at the earliest, leading to a moderation in output in 2012. The Florange plant is likely to remain offline until at least the end of June with union leaders suggesting it could be shut for the entire year. With this in mind, BMI has stayed with its output forecast of 15.5mn tonnes in 2012, a decline of 1.6% y-o-y.
By 2016 crude production and hot-rolled output should reach 17.0mnt and 15.1mnt respectively, which is still well down on pre-recession levels. Aluminium should fare better, helped in part by its use in lighter and more fuel-efficient vehicles. Also by 2016, aluminium production should have recovered to 2008 levels, provided there is no closure of capacity. The French steel industry will undergo the same process of 'delocalisation' as other industrial sectors. In the longer term, however, we believe French production remains susceptible to production erosion, if not complete factory closures. Over time, we expect carmakers to be more inclined to boost production overseas and gradually reduce production domestically, meaning that a full recovery in auto production may be difficult to attain and therefore holding back consumption levels.
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
Browse all Materials research reports at Fast Market Research
You may also be interested in these related reports:
- United States Metals Report Q2 2012
- Russia Metals Report Q2 2012
- South Africa Metals Report Q2 2012
- China Metals Report Q2 2012
- Taiwan Metals Report Q2 2012
- Poland Metals Report Q2 2012
- Egypt Metals Report Q2 2012
- Czech Republic Metals Report Q2 2012
- Canada Metals Report Q2 2012
- Spain Metals Report Q2 2012
Media Relations Contact
Director of Marketing
View this press release online at: http://rwire.com/147931