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| ArcelorMittal France EAF Project |
ArcelorMittal Reaffirms France EAF Construction Plans
ArcelorMittal confirms the France EAF project remains on track despite prior delays. Meanwhile, the company invited President Emmanuel Macron to visit Dunkirk, highlighting governmental support. As a result, the planned 2 million-ton-per-year recycled melt shop aims to replace blast furnace/basic oxygen furnace operations. Therefore, the investment of 1.3 billion euros signals a major step in European steel decarbonization.
Impacts on European Steel and Scrap Markets
The France EAF project will produce recycled steel and direct-reduced iron (DRI), potentially boosting demand for scrap metal. In contrast, natural gas-based DRI and green hydrogen adoption remain slow in Europe. Meanwhile, ArcelorMittal highlights that the European Commission’s CBAM and tariff-rate quotas strengthen domestic producers. Consequently, the initiative may stabilize European scrap and steel prices while reducing carbon intensity.
Regulatory and Strategic Outlook
European policies, energy markets, and trade protections have improved since 2024, enabling the France EAF project. Meanwhile, ArcelorMittal leverages governmental support to mitigate unfair imports and secure competitive conditions. As a result, startup remains scheduled for 2029, positioning Dunkirk as a model for large-scale, low-carbon steelmaking in Europe. This aligns with broader EU decarbonization and circular economy goals.
ScrapInsight Commentary
ArcelorMittal’s France EAF project strengthens low-carbon steel supply in Europe and increases demand for recycled scrap. CBAM enforcement and tariff protections enhance competitiveness. Long-term, EAF adoption could catalyze regional circular economy integration in steel production.
