Finland based stainless steelmaker Outokumpu has released its research on how the global stainless steel industry is affected by profound changes as tariffs and geopolitical tensions reshape international trade. The whitepaper titled “The Evolution of Materials” highlights how companies worldwide are adapting their sourcing strategies while preparing for a surge in long-term demand.
Survey scope and participants
The May 2025 survey included 70 senior decision-makers from companies which generated $430 billion in annual revenues in 2024. Results show that one in three organizations delayed stainless steel orders, more than half are reassessing sourcing strategies, and 30 percent have already switched suppliers in response to trade shifts.
Regional response strategies
The survey highlights different regional approaches. In North America, companies have secured long-term pricing contracts to manage volatility. In Europe, companies are building inventories to protect against possible supply shortages. Outokumpu CEO Kati ter Horst noted that tariffs and uncertainty are forcing industries to redesign procurement strategies, warning that critical infrastructure projects risk further delays.
Stainless steel demand outlook
Despite near-term challenges, optimism remains strong. Two-thirds of respondents expect demand to rise over the next five years, while nearly half foresee growth within the next year. This demand is being driven by climate resilience needs, urbanization, and stricter environmental regulations, all of which reinforce stainless steel’s value in infrastructure projects.
Expanding role in defense and aerospace
Stainless steel is also gaining prominence in defense and aerospace applications. The EU’s €800 billion ReArm Europe program is expected to accelerate demand for durable, sustainable materials. From bridges and tunnels to rockets and surveillance systems, stainless steel’s corrosion resistance, recyclability, and long lifecycle make it essential for future infrastructure and security projects.
