Sustainability is embedded in the value chain
The main growth drivers for the stainless steel industry come from global megatrends such as urbanization, mobility, economic and population growth as well as climate change. These megatrends drive the demand for economic, social, and environmental sustainability as well as the need to develop sustainable solutions that are durable and can be reused at the end of their lifecycle. Our commitment and contribution to sustainability is embedded throughout our value chain from procurement and production to customer deliveries.
We sell our stainless steel either directly to end-users or to stainless steel distributors, tube makers, and processors, such as steel service centers, who resell the products to end-users.
In 2025, around 60% of our business area Europe’s stainless steel flat products were sold directly to end-user customers, with the share of end-users rising from the previous year. The remaining 40% were delivered to distributors that stock and process stainless steel to serve end-users. In the Americas business area, distributors have a higher share than in Europe, 73% and 27% for end-users, respectively.
Global market with a few big players
Outokumpu operates in the global stainless steel market. We are known in the market for our world-class assets, comprehensive product portfolio and proven expertise, which form a sound foundation for our strategy execution and future success.
In 2025, the market for cold-rolled flat products totalled approximately 34.5 million tonnes. Outokumpu’s global market share was approximately 3.4%. Outokumpu is the market leader in Europe, given our cold rolled market share of 28%. Our market share decreased versus 2024 (31%), whereas import penetration increased from 22% to 25%. In the USMCA region, our market share stands at 24%, making Outokumpu the clear number two in the Americas. In the U.S. market, Outokumpu’s share amounts to approximately 24%. (Sources: CRU Stainless Steel Flat Products Market Outlook November 2025, EUROFER, Foreign Trade Statistics, American Iron & Steel Institute, StatsCan, Canacero)
Especially in Asia, production of stainless steel products is dominated by overcapacity. In addition to Outokumpu, the largest stainless steel producers worldwide include Asian companies Tsingshan, Delong, Baosteel, TISCO and POSCO, as well as European-based Acerinox and Aperam. Global steel production amounted to 1,662 million tonnes of which approximately 2.9% was stainless steel. The overall production of crude steel declined around 2% versus 2024. (Sources: CRU Nickel Monitor January 2026, Worldsteel December 2025).
In 2025, the global stainless steel production capacity of slabs increased slightly versus prior year to 75.2 million tonnes. The global utilization rate for cold rolled products was calculated at around 73% in 2025, decreasing from 76% in the previous year. Assumptions on global apparent consumption of stainless steel were revised constantly over the year to apply to slowing global stainless steel demand and changing economic circumstances. (Source: CRU Stainless Steel Flat Products Market Outlook November 2025, CRU Stainless Steel Flat Products Capacity Database October 2025)
As the production of stainless steel is capital intensive, producers generally aim for continuously high capacity utilization in order to maintain and improve profitability. Several Asian producers also manufacture carbon steel, which can be a substitute product for stainless in some cases, while European stainless steel manufacturers focus on the production of sustainable material.
Global stainless steel market: flat demand and policy uncertainty define 2025
Global stainless steel demand remained subdued throughout 2025, as end-users and distributors in all major regions – Europe, the U.S., and China – managed inventories tightly, limited purchases to short-term needs, and showed little appetite for restocking amid economic uncertainty and persistent market softness.
Stainless steel prices trended downward for most of 2025, pressured by weak demand and high inventories globally. European prices stabilized and edged up slightly in Q4, supported by regulatory changes like CBAM, while U.S. and Chinese prices fell sharply toward year-end due to aggressive discounting and oversupply. The year closed with prices under pressure in most regions, but Europe showed cautious optimism for early 2026 as policy support was expected to lift domestic prices. (Source: CRU Stainless Steel Flat Products Monitor 2025).
Global apparent consumption of stainless steel flat products amounted to 45.1 million tonnes in 2025, growing +3.8% vs. 43.4 million tonnes in 2024. Demand in EMEA and APAC increased by 2.6% and 3.7%, respectively, while the Americas recorded the biggest growth at 6.9%. (Source: CRU Stainless Steel Flat Products Market Outlook November 2025).
Global growth meets regional challenges in 2026
Global economic growth will slow to about 2.5% in 2026. Globally, stainless steel demand is expected to return to a growth trajectory after the turbulence of 2025. CRU forecasts indicate an upward revision in apparent consumption, supported by industrial recovery and policy driven trade realignments.
Prices are projected to rise gradually, driven by higher raw material costs and regulatory changes such as CBAM and expanded tariffs. However, risks remain from energy costs and policy uncertainty, which could temper the pace of recovery.
Europe is entering 2026 from a low base after a weak 2025 marked by fragile construction and appliance demand. The introduction of CBAM and stricter import safeguards will curb foreign competition and support domestic mills, but demand growth will be modest and gradual. Industrial activity is expected to rebound slowly, making Europe a high-cost but increasingly protected market.
The U.S. will remain the most protected stainless steel market globally, following tariff hikes that doubled Section 232 duties. Domestic production will increase, supported by new capacity and reduced import profitability, but elevated prices and policy uncertainty could weigh on end user sentiment.
China, despite ongoing capacity growth and cost competitiveness, faces persistent headwinds. Domestic demand remains weak, and exports are constrained by global trade barriers. A modest price recovery is expected in 2026, but structural challenges in construction and appliances, coupled with cautious government stimulus, will cap demand growth. Shipbuilding and automotive will provide some support, yet overall expansion will be slower than previous years (Source: CRU Stainless Steel Flat Products Market Outlook November 2025, CRU Global Economics Outlook December 2025).
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