Outokumpu: Tariffs and geopolitics disrupt global stainless steel supply
A study by Outokumpu Oyj reveals that global stainless steel supply chains are being disrupted by tariffs and geopolitical tensions.
Helsinki – Global stainless steel supply chains are facing significant disruptions due to tariffs and geopolitical tensions, according to a new report released by steel company Outokumpu Oyj.
The report, titled "L'évolution des matériaux" (The Evolution of Materials), indicates that one in three companies has suspended or delayed stainless steel orders as a result of tariff increases. Over half of the surveyed decision-makers are reassessing their entire procurement strategy, with 30 percent having already changed suppliers in response to evolving trade conditions.
The study is based on a global survey conducted in May 2025 among 70 senior decision-makers from companies in North America and Europe. North American firms were more reactive, locking in long-term prices for protection, while European participants were more likely to build inventory against future disruptions.
"Tariffs and geopolitical shifts are doing more than destabilizing markets – they are forcing many industries to rethink material sourcing. Ongoing uncertainty and evolving regulation are creating disruptions. Policymakers worldwide need to act to protect vital infrastructure projects and avoid further delays," stated Kati ter Horst, CEO of Outokumpu Oyj.
Despite short-term caution, two out of three respondents anticipate an increase in stainless steel consumption over the next five years. This growth is driven by climate change, urbanization, and tightening environmental regulations, increasing demand for stainless steel in infrastructure due to its corrosion resistance and durability. The defense and aerospace sectors are also contributing to higher demand.