One third of companies stopped ordering stainless steel due to US duties – Outokumpu

Finnish company Outokumpu, the world’s leading stainless steel producer, has presented the results of a study that shows profound changes in the global steel market due to tariffs and geopolitical tensions. The Evolution of Materials is based on a survey of 70 executives from companies with a combined annual revenue of more than $430 billion, including the largest steel consumers in the energy, automotive, construction and infrastructure sectors.

The survey was conducted in May 2025, in the first months of the introduction of large-scale import duties in the United States. The results showed that a third of companies have stopped or postponed orders for stainless steel, more than half are reviewing their procurement strategies, and 30% have already changed suppliers.

The reaction of businesses varies by region. US companies are mostly locking in long-term prices to protect themselves from volatility, while European market participants are building up inventories to reduce the risk of disruption.

«Tariffs and geopolitical changes are not just destabilizing markets, they are forcing entire industries to rethink their procurement approaches. Policymakers need to act to avoid disrupting critical infrastructure projects,» said Katri ter Horst, CEO of Outokumpu.

Despite the current caution, two-thirds of respondents predict an increase in stainless steel consumption in the next five years, and one-third expects a “significant” increase in demand. This will be driven by climate challenges, urbanization and increasing environmental requirements. Corrosion resistance and a long life cycle make the products particularly valuable for bridges, tunnels, coastal fortifications and skyscrapers.

An additional factor will be the growing demand from the defense and aerospace industries. The EU’s €800 billion ReArm Europe plan will stimulate the use of high-tech stainless steel grades that extend asset life and contribute to the transition to low-carbon infrastructure.

As GMK Center reported earlier, global stainless steel production in April-June 2025 increased by 5% quarter-on-quarter – to 16.36 million tons. Compared to the same period in 2024, the figure increased by 3.1%. During this period, Europe reduced stainless steel production by 5.1% y/y and 4.1% q/q – to 1.54 million tons. The United States increased its output by 7.8% y/y and 1.1% q/q over 3 months to 559 thousand tons.