Global Steel Market Sees Turbulence Amid Trade Frictions and Shifting Demand

Latest Developments (2024–2025)

In June 2025, the United States doubled its tariffs on steel imports to 50%, a move intended to “counter foreign countries that continue to offload low priced, excess steel… and undercut the competitiveness of the United States steel… industries”. Despite hopes for tariff relief, recent EU–US negotiations failed to roll back the 50% steel levy, leaving European producers “disappointed” and warning of continued market distortion under the high tariff regime.

EU and US Forge Metals Alliance to Offset Chinese Overcapacity. "The agreement is clear prospect of joint action on steel, aluminum, copper and the derivatives in what I'd like to call a metals alliance, effectively creating a joint ring-fence around our respective economies through tariff rate quotas at historic levels with preferential treatment," Sefcovic told a press conference. "It became very, very clear that if it comes to steel and metals we are not each other's problem." he continued.

Applications Across Industries

The steel market is characterized by its cyclical nature, with demand often driven by the construction, automotive, and manufacturing sectors. Key applications include:

• Construction: Structural beams, reinforcing bars, and sheet piles for buildings, bridges, and infrastructure.

• Automotive: High strength, low alloy steels for vehicle bodies and chassis; specialty steels for electric vehicles.

• Manufacturing & Machinery: Machinery frames, tools, and heavy equipment.

• Energy: Pipelines, wind turbine towers, and pressure vessels in oil & gas and renewable energy.

Components of the Steel Market

The steel value chain comprises:

• Raw Materials: Iron ore, metallurgical coal (coking coal), and recycled scrap steel. For example, Australia led global iron ore production in 2024 with 930 million tonnes, followed by Brazil and China at 270 million tonnes each.

• Product Segments:

  • Carbon Steel: Includes low, medium, and high carbon varieties for structural and industrial uses

  • Alloy Steel: Low alloy and high alloy grades designed for enhanced strength and durability

  • Specialty Steels: Stainless steel, tool steel, electrical steel, and bearing steel for specialized applications.

Regional Analysis: Dominating vs. Fastest Growing

Key Players & Recent Strategies:

• In April 2025, Boston Metal unveiled its electrochemical steelmaking process, which replaces coal with electricity and emits only oxygen—potentially cutting annual carbon emissions by up to 3 billion tonnes.

• Also in April 2025, Primetals Technologies teamed up with Mitsubishi Corporation, Rio Tinto and voestalpine to advance fluidized bed and smelter ironmaking technologies. This collaboration is designed to future proof steel production and reduce climate changing emissions.

 
These initiatives reflect the sector’s broader shift toward decarbonization, driven by tightening regulations and growing demand for sustainable materials.

Future Prospects & Examples

• Infrastructure Rebound (steel demand forecast): “worldsteel forecasts that this year demand will see a 1.7 % rebound to reach 1,793 Mt. Steel demand is forecast to grow by 1.2 % in 2025 to reach 1,815 Mt.”

• EV Revolution (premium electrical steel for autos): “ArcelorMittal announced plans to construct an advanced steel manufacturing facility in Calvert, Alabama, aiming to boost production capacity to meet U.S. automotive sector demand… anticipated to produce 150 kilotons annually of premium non grain oriented electrical steel.” 

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