Esm the precision cold-rolled steel market - France (2023)

1.2 The European market

The steel industry in Europe

Steel is an essential material for the French economy. Positioned upstream of numerous value chains, French steel producers supply various downstream sectors, such as the automotive, aeronautics, construction and mechanical engineering industries. In this way, they contribute to the success of the ecological transition of French industry as a whole, by developing new materials and solutions needed, for example, in the manufacture of wind turbines, electric vehicles and hydrogen transport.

In ****, the European Union (***), almost back to its pre-pandemic level. This steel industry is of strategic importance to the European economy, generating *.* million jobs, including ***,*** direct jobs, and contributing to an added value of *** billion euros, including **.* billion euros directly. [***]

The European steel industry, of which France is a part, has to contend with international competition that is not subject to the same environmental regulations. This situation is jeopardizing its competitiveness, aggravated by structural problems such as persistent global overcapacity and a steady increase in non-European imports between **** and ****. What's more, the French steel industry needs to invest massively in decarbonizing its processes if it is to achieve the ambitious targets set out in its roadmap, namely a **% reduction in its CO* emissions by **** and move ...

1.3 The French market

The French steel market

Steel industry revenues (***) excluding VAT France, **** - ****, in billions of euros Source: ****

The French steel industry has grown considerably in recent years. In **** the market size was **.** billion euros; in ****, the equivalent figure was **.** billion euros. The drastic decline in **** was due to weakness in the construction sector, while the surge between **** and **** was caused by strong growth in real GDP. In **** and ****, there is a significant increase due to the demand for materials from different sectors and the post COVID-** economic recovery.

Steel use continues to grow in France. [***] The main uses for steel in France are construction and transport. In this context, Marketrealist asserts that the main driver of steel consumption based on these two sectors is GDP, as economic health drives investment in the two aforementioned sectors.

Sub-segments of the steel industry

The steel industry in France encompasses several segments that contribute significantly to the breakdown of billings, represented in the graph below. These segments include cold forming, cold drawing, basic steelmaking, tube and pipe manufacturing, and cold rolling. Basic steelmaking is the main outlet, accounting for **.*% of billings. Basic steelmaking involves the production of crude steel from iron ore and other raw materials. ...

1.4 Imports and exports

The study of foreign trade associated with HS code ****** provides an insight into the international trade associated with this specific product. HS code ****** refers to cold-rolled stainless steel flat products with a width of *** mm or more. By analyzing the foreign trade data linked to this code, we can observe the trends, volumes and geographical distribution of imports and exports of this type of product.

It is interesting to note that exports of cold-rolled stainless steel are higher than imports into France, with a coverage rate always greater than *. This testifies to the competitiveness and quality of French products in this sector. French companies specializing in the production of cold-rolled stainless steel have succeeded in positioning themselves advantageously on international markets, offering products that meet the highest standards of quality and performance.

Cold-rolled steel imports and exports France, ****-****, in millions of euros Source: ****

Main supplier countries

France depends on several countries for its cold-rolled stainless steel imports, with some major players standing out in this field. Germany is the main supplier of cold-rolled stainless steel to France, accounting for around **% of total imports. Belgium also plays an important role, with around **% of imports. Italy follows closely behind, supplying around **% of ...

1.5 Focus on foreign trade

More specifically, we are interested in the following * codes, which belong to the category mentioned in the previous section:-********: Flat-rolled products of stainless steel, width < *** mm, simpl. cold-rolled, thickness <= *.** mm, nickel content by weight >= *.*%-********: Flat-rolled products of stainless steel, width < *** mm, simpl. cold-rolled, thickness > *.** mm but < * mm, nickel content by weight >= *.*

Code "********

Trade in products associated with code "********" saw a significant increase in the value of its imports and exports between **** and ****. Imports rose from €** million to €** million, while exports increased from €** million to €** million. In terms of volume, imports rose from * to * thousand tonnes, while exports remained stable at ** thousand tonnes.

Imports and exports - code "********* France, ****-****, value in millions of euros and mass in thousands of tons Source: ****

Code "********

Foreign trade trends for code "********", which refers to the specific category of stainless steel flat-rolled products, show significant growth. Between **** and ****, the value of imports increased from ** to ** million euros, while the value of exports rose from *** to *** million euros. In terms of volume, the mass of imports also increased, from ** to ** thousand tonnes, while the mass of exports fell slightly, from ** to ** thousand tonnes.

Imports and exports - code "********* France, ****-****, value in millions of euros ...

2.1 The main outlets for steel in Europe

Steel is an essential and ubiquitous material in many sectors of the European economy. Indeed, it plays a crucial role in industries such as construction, automotive, mechanical engineering and many others. Thanks to its strength, durability and versatile physical properties, steel is widely used in infrastructure construction, vehicle and machine manufacturing, as well as in many other fields. The following chart gives a breakdown of the main steel-consuming sectors in Europe.

Main consumer sectors of the steel industry Europe, ****, as % of total Source: ****

The construction sector

The construction sector is the main customer market for steel producers in Europe. In fact, it will absorb more than a third of steel consumption by volume in ****. Building professionals use steel for many essential applications. It is widely used in the construction of structures such as buildings, bridges and road infrastructures. Steel offers exceptional strength, making it the material of choice for ensuring the solidity and durability of these constructions. Steel is also used in the creation of railroads, enabling the construction of reliable and robust rail networks. Thanks to its physical properties and versatility, steel remains an essential part of the construction industry, providing solid, durable solutions for building projects.

The automotive ...

2.2 Demand for precision cold-rolled stainless steel driven by the automotive market

The advantages of precision cold-rolled stainless steel in the automotive sector

Precision cold-rolled stainless steel is used in automotive components such as cylinder head gaskets, bellows, and brake pad plates due to its unique and advantageous properties.

Stainless steel offers excellent corrosion resistance. Automotive components are subjected to harsh environmental conditions, including exposure to moisture, temperature variations, and chemicals. Precision cold-rolled stainless steel resists corrosion, thus ensuring increased durability and longevity for these components.

This steel also possesses high mechanical strength. Cylinder head gaskets, bellows, and brake pad plates are subjected to significant stresses, be it pressure, bending, or friction. Precision cold-rolled stainless steel provides high dimensional accuracy. Tight tolerances are crucial to ensure optimal functioning of automotive components. Thanks to its formability and precision properties, this steel allows for the production of components with precise dimensions, thus ensuring a perfect fit and optimal functionality in automotive systems.

The evolution of the automotive sector

Vehicle construction represents a major outlet for the sector, particularly in Europe, where it is highly developed.

If we start by looking at the number of new passenger car registrations by engine type, we can see a general trend towards fewer cars. This is due to the ...

2.3 Electronics: another driver of demand for precision cold-rolled stainless steel

Rolled stainless steel plays an essential role in the electronic components market, thanks to its specific properties and superior quality. This type of steel is widely used in the manufacture of housings, connectors, electrical contacts and other electronic components. Laminated stainless steel offers reliable protection for electronic circuits against external elements and guarantees optimum performance. What's more, its ability to be cut, formed and welded to precise specifications allows great flexibility in the design and manufacture of electronic components. In a market where reliability and quality are paramount, rolled stainless steel is the material of choice to ensure the durability and functionality of electronic components, thus contributing to the growth and innovation of the electronics industry.

Several factors are driving the business of electronic components traders. Demand from the automotive industry plays a key role. Motor vehicle production has a direct impact on electronics subcontractors, and indirectly on the market for electronic components and boards. Traders supply a variety of products such as microcontrollers, multimedia processors, audio systems and telecommunications systems used in the automotive industry.

Demand from the aerospace industry is another major determinant of business for electronic components dealers. The aerospace industry has major requirements for electronic tubes, modules ...

2.4 Medical engineering, another application for precision cold-rolled steel

Precision cold-rolled stainless steel plays a crucial role in medical engineering due to its unique properties. It is widely used in the manufacture of medical devices such as implants, surgical instruments and diagnostic equipment. The non-reactive nature of stainless steel ensures excellent biocompatibility, reducing the risk of allergic reactions or complications for patients. In addition, its corrosion resistance and ease of cleaning make it an ideal choice for demanding medical environments. The evolution of medical equipment manufacturing, with an increasing demand for more sophisticated and miniaturized devices, also reflects the growing demand for precision cold-rolled stainless steel. This trend reflects the importance of this steel in the medical engineering sector, and its potential for market growth.

According to a study by SNITEM (***), demonstrating that the sector is highly internationalized. The market has been growing for several years, following the same trends as the global aging population.

medical device manufacturing market trends France, ****-****, € billion CAGR: +*.*% Source: ****

This market is experiencing strong growth, with +*.*% between **** and ****, and is driven by exports, which will grow by +*.*% in ****. According to the same source, this will particularly benefit players who generate a significant proportion of their sales abroad. While driven by exports, the market nevertheless ...

2.5 Cold-rolled stainless steel for aerospace engineering

Precision cold-rolled stainless steel also plays a role in the aerospace industry. This high-quality steel is used in the manufacture of components such as aircraft structures, engine parts, propulsion systems, navigation instruments and communications equipment. For example, it is used in the construction of wings, fuselages and support systems, where its corrosion resistance, light weight and durability make it a preferred choice. What's more, in the demanding environments of aerospace, this steel offers resistance to extreme temperatures, vibrations and mechanical stress. Demand for precision cold-rolled stainless steel in the aerospace sector is closely linked to the growth of these industries. The post-Covid period has seen a gradual recovery in the sector, with an increase in orders for civil aircraft and an intensification of space activities. Thus, while sales in the aerospace sector in **** (***) will not yet match pre-Covid figures, they do suggest growth for the years ahead, as indicated by the growth in the number of aerospace construction companies. This growth is boosting demand for precision steel, as new projects and innovations require reliable, high-quality materials.

Sales in the aerospace sector France, ****-****, in billions of euros Source: ****

number of companies in the aerospace industry France ****-****, in units Source: ****

2.6 List of major cold-rolled steel buyers

This table presents a list of well-known companies and their respective sectors of activity. These companies operate in a wide range of fields, including aerospace, automotive, electronics, chemicals, construction, electrical engineering, energy and more.

3.1 Value chain

The value chain for precision cold-rolled stainless steel comprises several essential stages:

*. WSL (***): This stage involves the manufacture of wire from stainless steel raw materials. The sintering process compacts the metal particles to form solid wires.

*. CBL (***): Once the wires have been produced, they are sent to the cold box line. Here, wires are precisely assembled and combined with other components to form semi-finished products such as tubes or bars.

*. Cold Rolling: Cold rolling is a crucial stage in the manufacture of precision cold-rolled stainless steel. Semi-finished products are passed through rollers to flatten and reduce them to the desired thickness with high dimensional accuracy.

*. Heat Treatment: After cold rolling, products undergo heat treatment to improve their mechanical properties and corrosion resistance. This process of controlled heating and cooling helps to stabilize the steel's structure and improve its hardness.

*. Levelling: After heat treatment, products are straightened to eliminate residual stresses and deformations. The aim of this step is to obtain flat, uniform surfaces, essential for ensuring the precision and quality of the final product.

*. Degreasing: To ensure a clean, contaminant-free surface, products are degreased. This step removes oils, greases and other undesirable substances from the ...

3.2 Steel production analysis

The production process There are two distinct steelmaking processes: The blast furnace, made from iron ore and coal (***); The electric arc furnace (***), made from recovered steel. The blast furnace production process is described below Pig iron formation: iron ore and coke are fed into the blast furnace from above. The heat inside burns the coke, and chemical contaminants are removed. The iron is then loaded with carbon (***), which enables it to sink and become cast iron. This must then be separated from a mixture of waste materials known as slag. Transformation of cast iron into steel: The molten cast iron is mixed in an oxygen furnace, where oxygen is blown in to eliminate the carbon in the form of CO*. The result is steel. Refining:The steel obtained is refined by adding elements (***) to form different alloys and modify the steel's mechanical properties as required. Casting: the steel is gradually cooled until it solidifies. Continuous: the steel is reheated to make it malleable. It is then flattened in rolling mills and given the desired shape. [***]

Production in France France has a rich steel history, and has historically played an important role in steel production. After the Second World War, Usinor and ...

3.3 Number of employees and companies in the sector and their geographical distribution

In ****, there was a significant increase in the number of employees specializing in cold-rolled steel in France, reflecting the promising development prospects for this sector. The number of employees rose from *** to *** between **** and ****, an increase of *.*% in one year. This increase reflects the growing recognition of the importance of cold-rolled steel in various industrial sectors mentioned in Part *. Companies have understood the importance of this high-quality material in meeting the specific requirements of their products and adapting to new market trends. This growth in the number of specialized employees demonstrates the French steel industry's commitment to strengthening its skills and supporting the development of new technologies.and support the development of cold-rolled steel, creating new job opportunities and fostering technological innovation.

Number of employees and companies specializing in cold-rolled steel (***) France, ****-****, in units Source: ****

In France, the distribution of employees specialized in cold-rolled steel varies from one region to another, and many regions do not have any employees in this field. Among the regions with the highest number of specialized employees, the Auvergne-Rhône-Alpes region stands out, accounting for nearly **% of the workforce in this industry. This region distinguishes itself by its dynamic and diverse industrial fabric, particularly in ...

3.4 Precision cold-rolled stainless steel distribution and coil centers

*. ArcelorMittal Distribution Solutions: ArcelorMittal is a world-renowned steel company with a presence in France. With its **,*** employees, ArcelorMittal plays an essential role in the country's steel industry. In ****, the company produced around *.* million tonnes of liquid steel in France, affirming its position as one of the country's leading steel producers. Thanks to its modern production facilities and state-of-the-art technology, ArcelorMittal is able to supply a wide range of high-quality steel products to meet the needs of the automotive, construction, energy and many other sectors. The company also places great emphasis on innovation and sustainable development, constantly seeking to improve its production processes to reduce its environmental footprint. ArcelorMittal plays a major role in the French economy, providing stable jobs and actively contributing to the country's steel industry.

*. Thyssenkrupp Materials France: Thyssenkrupp Materials France is a market leader in the distribution of steel and non-ferrous materials. With around *** employees, the company supplies high-quality steel and non-ferrous products for innovative and demanding applications in many sectors. The distribution and recommendation of top-quality materials is at the heart of the company's challenges, and it offers additional support services. The company emphasizes its capacity for innovation, customization, responsiveness and recommendations.

*. Aperam Stainless Services ...

4.1 List of companies producing cold-rolled stainless steel in France

The largest industrial steel production sites

SMEs specializing in cold-rolled steel

Source: ****

4.2 The different types of products on offer

Precision cold-rolled stainless steel offers a wide range of products adapted to the specific needs of industry. These include cold-rolled stainless steel tubes. These tubes are used in many sectors, including the chemical, petrochemical and food industries, as well as in construction and medical equipment. They are distinguished by their corrosion resistance and durability.

Cold-rolled stainless steel coils are also very common. They are used in the manufacture of various industrial components, such as automotive parts, household appliances, electronic equipment and construction elements. Coils offer great flexibility of use and allow precise cutting to meet specific customer requirements.

Another essential aspect of precision cold-rolled stainless steel is the ability to produce parts on demand. This option makes it possible to manufacture metal components in specific shapes and sizes according to customer requirements. This opens the way to customized applications in various industrial sectors, such as automotive, aerospace, electronics and many others.

Cold-rolled stainless steel trays are also popular products. They are widely used in professional kitchens, hospitals, laboratories and other environments where hygiene and corrosion resistance are paramount. Cold-rolled stainless steel trays offer a smooth, easy-to-clean, stain-resistant surface, making them ideal for applications requiring high standards of hygiene.

Cold-rolled stainless steel ...

5.1 Legislation and standards

Current regulations

The EU is the world's second largest steel producer after China. The European Union has stated its ambitions to strengthen the steel sector, given its strong links with various related industries; by the end of ****, it expects the industry to account for **% of the Union's GDP. [***]

To achieve this, the EU has set up projects including Horizon ****, structural funds and the Research Fund for Coal and Steel.

In the Steel Action Plan, the EU sets out its expectations for meeting the challenges of the environment, competitiveness and access to raw materials. These include

A sound regulatory framework: European legislation must create a healthy investment climate; Stimulating demand for steel: Implementation of growth-oriented EU initiatives in construction and automation (***); At international level: Enforcing international commitments and ensuring a level playing field for the EU steel sector; Reviewing market accessibility; Access to raw materials: access to raw materials is covered in raw materials policy and strategy; Trade negotiations and agreements are essential in this sector; Energy prices and supply energy costs can account for up to **% of the total operational costs of steel production; policies therefore seek to adjust energy prices accordingly.

[***]

In France, the government specifies the regulatory frameworks ...

5.2 Customs

The steel trade is governed by various customs regulations put in place to frame international trade and ensure compliance with safety, health and environmental protection standards. Among the most commonly used laws is the Customs and Trade Modernization Act of ****, which came into force on March **, ****, bringing significant changes to customs procedures and the management of imported and exported goods.

As far as customs duties are concerned, they are generally set in accordance with World Trade Organization (***) has established bound tariffs for certain steel products, governing the customs duties applicable to steel imports. These tariffs are regularly updated, and countries are bound by them.

With regard to goods security, the Container Security Act **** (***) is widely used to reinforce border controls and inspections. This law authorizes customs authorities to carry out in-depth checks of containers using X-ray scanners and other detection technologies to detect any illicit or dangerous substances.

As far as steel quality and certification standards are concerned, several international regulations are applied. For example, ISO ****:**** defines the requirements for quality management systems, including those used in steel production and distribution. Companies are encouraged to obtain this certification to demonstrate their commitment to quality and compliance.

It is important to note ...

5.3 Reindustrialization policies

Reindustrialization has become a priority in France, supported by initiatives such as the "Plan France Relance" and "France ****." These policies aim to stimulate economic growth, create jobs, and strengthen industrial competitiveness. In this context, the cold-rolled steel sector can be considered a potential growth driver. Cold-rolled steel is used in various industries, such as automotive, aerospace, appliances, and construction. By strengthening the domestic production of cold-rolled steel, France can reduce its dependence on imports and promote greater industrial self-sufficiency.

The Minister of Economy, Finance, Industrial and Digital Sovereignty, along with the Minister Delegate to the Minister of Economy, Finance, Industrial and Digital Sovereignty, in charge of Industry, presented a communication on France's reindustrialization policy. This policy was launched over * years ago and is starting to bear fruit. France remains attractive and has become the top destination for foreign direct investments in Europe. In ****, a record number of *,*** job-creating foreign investment projects were registered, representing a *% increase compared to the previous year. Production activities account for **% of these investment decisions, with *** projects, and generate **% of the reported jobs, totaling **,*** jobs.

During the ****-**** period, the French industry has significantly improved, with a *.*% increase in private salaried employment in this sector, rising from ...

6.1 Summary of buyers, distributors and competitors

Listed below are the main buyers, distributors and competitors in the precision cold-rolled steel sector in France:

• Airbus Groupe
• Safran Groupe
• Zodiac Aerospace (Groupe Safran)
• Thales
• Daher
• Figeac Aéro Groupe
• Schneider Electric
• Legrand Groupe
• Danfoss
• SEB Groupe
• Forvia (ex Faurecia)
• Michelin Groupe
• OPmobility Plastic Omnium Groupe
• Renault Groupe
• PSA Peugeot Citroen
• Guerbet
• Biospacelab
• SKF
• Alstom
• Poclain Hydraulics
• Arkema groupe
• Fives Group
• Arcelormittal Centres De Services
• Thyssenkrupp Materials France
• NLMK La Louvière
• Nippon Steel Trading Europe
• Kloeckner Metals France
• Salzgitter Mannesmann International
• Outokumpu Distribution France
• IMS France
• Aperam Groupe - Alloys Imphy
• Ugitech
• ArcelorMittal
• Ferropem (Swiss Steel Group)
• Paturle Aciers
• Aperam Groupe - Aperam Stainless France
• CMC Chartrain
• ETILAM
• LISI Groupe
• Aciers Coste
• Metal Tolling Services
• Saint-Gobain Groupe