- 30% of European firms switch suppliers amid uncertainty
- Long-term demand driven by sustainability, infrastructure
Outokumpu, a leading producer of finished stainless steel, reports that one-third of European companies have paused or delayed stainless steel orders due to US import tariffs of up to 50%, while over half of the companies are reassessing their sourcing strategies. Around 30% of firms have already switched suppliers, reflecting the market uncertainty created by recent tariff expansions, including hundreds of derivative products added to the US levy list in August.
Outokumpu CEO Kati ter Horst highlighted that current European Union import quotas are too high given slowing global demand and expects the European Commission to announce new measures this fall to curb steel imports and protect domestic producers. These actions may come earlier than the current safeguards, which are set to expire next summer.
Despite short-term caution, the long-term outlook for stainless steel remains positive. Growing demand is supported by sustainability initiatives, urban infrastructure projects, corrosion-resistant applications, and the defence and aerospace sectors. Europe’s EUR 800 billion ReArm plan is expected to further boost high-tech stainless steel consumption. Outokumpu is also advancing production of a low-emissions chromium-rich alloy, scaling output from one kilo to one ton per day, underscoring innovation amid shifting trade and environmental pressures.
Global stainless steel trends indicate moderate production growth, while European output has slightly declined, signaling a regional supply-demand imbalance.
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