Amidst an increase in global tariff protections for steel manufacturers, Outokumpu, the global leader in sustainable stainless steel, welcomes confirmation of projected increases of stainless steel demand and a pivot toward local suppliers.
Outokumpu commissioned a global survey of 70 senior decision-makers at companies with a combined annual revenue of ~430 billion USD (2024), including some of the world’s biggest industrial steel consumers across energy, consumer goods, automotive, construction and infrastructure. Conducted in May 2025, as the U.S. increased and expanded tariffs on domestic steel imports, two-thirds of survey respondents forecasted higher stainless steel intake over the next five years, with one in three predicting a “significant” rise, notwithstanding a shifting trade environment.
Outokumpu sees opportunities that are emerging in key sectors. Defense, aerospace, and the burgeoning hydrogen economy, for example. Further, the massive energy requirements for new technologies like AI and data centers will fuel growth in the energy production sector.
As the survey reveals that over half of respondents are re-evaluating their sourcing strategy for these materials, Outokumpu stands ready as a steady supply partner.
Additional protection to the U.S. stainless steel market is welcome, as is confirmation that protections are causing customers to reevaluate existing supply chains and consider reorienting toward local stainless steel producers. U.S. tariff protections from low-price and non-sustainably produced imports have allowed us to remain profitable, despite additional price erosion from those imports. We expect the tariff rate increases and expansions from earlier this year to allow us to regain ground for our material fully produced in Calvert, Alabama, and we are already seeing outreach from new and returning customers seeking a stable domestic supply source in response to shifting trade conditions.
In Outokumpu’s survey, over 30 percent of respondents reported having already switched suppliers in response to shifting trade conditions.
Business thrives in a predictable environment. Our survey confirms realignment of supply chains prompted by the current tariff protections, but these actions are not temporary. Local sourcing to avoid supply disruption is a long-term strategy.
Download the survey report and learn more: The Evolution of Materials - Stainless Steel Insights 2025.