Speaking at the 45th annual meeting of the World Steel Association (worldsteel) held in Paris on October 12, president of the French Steel Federation (FFA) Philippe Darmayan warned that after the recovery of 2010 the French industry as a whole is now facing new uncertainties due to the European financial crisis. Stating that all industry players are currently adopting a wait-and-see stance, Mr. Darmayan told attendees that private consumption is likely to be moderate, while investment expenditures will be limited and more credit limitations may be ahead.
However, Mr Darmayan also said that French steel mills are still seeing reasonable demand, as the automotive, machinery and housing industries are still active, although industrial building constructions are still depressed.
Comparing the current economic situation in Europe to the crisis of 2008, Darmayan emphasized that, with inventory levels much lower than in 2008, the French steel industry is now much better positioned to recover from any weakening in demand, adding that the industry can adopt a cautiously optimistic view.
France is Europe's fourth and the world's 15th largest steel producer, with an annual production of 15.4 million mt. The country's steel production capacity comprises flat steel output capacity of 11.7 million mt, long steel production capacity of 5.05 million mt and special steel production capacity of 1.82 million mt.