The research survey was conducted in May 2025, during the initial wave of widespread tariffs introduced under the first few months of U.S. administration – a period that marked a significant shift in global trade dynamics.
The findings of Outokumpu’s research show that one in three organizations have paused or delayed stainless steel orders due to tariff upheaval – raising concerns about the progression of major infrastructure projects globally. Over half of the respondents are now re-evaluating their entire sourcing strategy, and 30% have already switched suppliers in response to shifting trade conditions.
The survey also reveals regional differences in response strategies. North American companies have been more reactive, with many locking in long-term prices to hedge against volatility. In contrast, European respondents were more likely to build up inventory, aiming to buffer against future disruptions.
“Tariffs and geopolitical shifts are doing more than unsettling markets – they’re forcing many industries to rethink materials sourcing. Ongoing uncertainty and shifting regulation are causing disruption. Policymakers globally must act to safeguard vital infrastructure projects and prevent further delays. A convergence of political, environmental and economic pressures means a much bigger role for the material in the built environment looking forward”, says Kati ter Horst, President & CEO of Outokumpu.
Despite short-term caution, two in three respondents anticipate higher stainless steel intake over the next five years, with one in three predicting a ‘significant’ rise. Even on a twelve-month horizon, just under half the sample expect volumes to tick up.
The mid-to-long-term demand surge is driven by stainless steel’s expanding role beyond traditional niche industries. Climate change, rapid urban growth, and tighter environmental regulations are key catalysts. More extreme temperatures, flooding and other weather events are placing infrastructure under unprecedented strain, making stainless steel’s corrosion resistance and strength more valuable than ever – from use for bridges and coastal defences to tunnels and skyscrapers. Its recyclability and long lifecycle reinforce its role in building resilient, low-impact infrastructure.
Stainless steel is also gaining prominence in defense and aerospace, as security concerns drive military investment. The EU’s €800 billion ReArm Europe plan, which prioritizes resilience and sustainable materials, is set to boost demand for advanced stainless steel grades that extend asset lifespans and support the shift to low-carbon military infrastructure. From reusable rockets to energy-efficient surveillance systems, stainless steel is proving essential where durability, heat resistance and circularity are critical.
*) The survey included single-choice, open-ended, and Likert-scale items. Quantitative and qualitative data were collected and analyzed by Kairos Future, yielding 49 completed responses (70% response rate). Geographically, respondents break down into Europe (41%), United States (24%) and those operating globally (35%) – a mix that provides a reasonably balanced view of regional priorities and pain-points.
The full whitepaper, The Evolution of Materials: Stainless Steel Insights 2025, is available to read here.
