Sustainability is the key
The main growth drivers for the stainless steel industry are 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. Mitigating climate change by reducing our carbon footprint is a clear focus area, and we aim to reduce our environmental impact through the circular economy. This covers an energy efficient production by using low-carbon electricity, minimizing waste, and the use of as much recycled resources as possible in our production.
After the introduction of Outokumpu Circle Green® in 2022, the first of its kind globally, we constantly enlarged the product offerings in 2024. We became the first steel company in the Nordics with a ResponsibleSteel Certificate for all manufacturing sites in Finland, Sweden and Germany. Moreover, first Circle Green deliveries into the Asian Pacific were realized.
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 2024, 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 2024, the market for cold-rolled flat
products totaled approximately 33.3 million tonnes.
Outokumpu’s global market share was approximately 3.0%.
Outokumpu is the market leader in Europe, given our coldrolled market share of 31%. Our market share decreased
slightly versus 2023 (33%), whereas import penetration
increased from 19% to 21%. Despite this increase, import
penetration is still below previous years’ levels.
In the USMCA region, our market share stands at 23%,
making Outokumpu the clear number two in the Americas.
In the U.S. market, Outokumpu’s share amounts to
approximately 23%. (Sources: CRU Stainless Steel Flat
Products Market Outlook November 2024, EUROFER,
Foreign Trade Statistics, American Iron & Steel Institute,
StatsCan, Canacero)
Especially in Asia, stainless steel producers were growing.
In addition to Outokumpu, the largest stainless steel
producers worldwide include Asian companies Tsingshan,
Delong, Baosteel, TISCO and POSCO, as well as Europeanbased Acerinox and Aperam. Global steel production
amounted to 1,839 million tonnes of which approximately
3.1% was stainless steel. (Source: CRU Nickel Monitor
January 2025, Worldsteel January 2025).
In 2024, the global stainless steel production capacity of
slabs remained stable on 2023-levels at 72.8 million
tonnes. The global utilization rate for cold rolled products
was calculated at around 75% in 2024, increasing from
71% 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 2024)
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.
Navigating through year of challenges
In 2024, the stainless steel market had to navigate
through a series of significant events and trends that
shaped its trajectory across different regions. The year was
marked by a complex interplay of supply chain disruptions,
fluctuating demand, and strategic adjustments by key
players in the industry.
The European stainless steel market began the year with
significant challenges. Strikes at major mills, including
Outokumpu in Finland and Acerinox in Spain, led to severe
supply shortages. These disruptions, combined with high
raw material costs, initially drove prices up. The white
goods sector showed slight improvement, while demand in
the construction and automotive sectors remained flat.
In the U.S., the market experienced a stable start with
base prices holding steady. Demand was consistent across
key industries such as shipbuilding and chemical
processing. Meanwhile, in Asia, particularly China, prices
increased due to higher raw material costs and strong
futures contracts. However, demand remained subdued
ahead of the Chinese New Year.
As the second quarter unfolded, European stainless steel
prices continued to rise. The ongoing supply shortages
from the strikes at Outokumpu and Acerinox were the main
drivers of this increase. Despite high raw material costs,
the market saw a slight improvement in the white goods
sector. However, stock levels remained low as supply was
expected to recover with the resumption of operations at
the affected mills.
In the U.S., demand remained stable, particularly in
shipbuilding and chemical processing. As supply in China
was strong and demand remained stable, mills cut
production in response to negative margins, and exports
increased significantly.
The third quarter saw a shift in the European market as
stainless steel prices began to decline on weak demand,
increased domestic supply, and competitive imports.
Material entering the European market had been ordered
during the supply disruptions in the second quarter to
secure supply over summer and in the third quarter.
Despite low inventory levels, buying activity remained
subdued, particularly in the automotive and construction
sectors.
Demand in the U.S. softened, leading to increased
competition among service centers. Short lead times and
competitive import offers from Asia influenced market
dynamics. In China, weak demand and strong supply
continued to weigh on the market. The automotive and
construction sectors struggled, leading to production cuts
and negative margins for mills.
European demand remained weak over the fourth quarter,
partially impacted by the stagnant automotive industry and
home appliance sectors. Competition among sellers
intensified, and European producers intended to balance
the market with production adjustments.
In the U.S., manufacturing activity remained low despite a
seasonal uptick in demand, with strong demand in energyrelated activities and shipbuilding, but other sectors
showed pessimistic demand. Market sentiment in China
improved initially due to government stimulus, but weak
demand and oversupply led to a bearish outlook, with
buyers remaining cautious and low interest in restocking
before Chinese New Year.
Throughout 2024, stainless steel prices experienced
significant fluctuations. In Europe, prices for CR 304
stainless steel rose sharply in the first half of the year, due
to supply shortages. However, the second half saw a
steady decline, with prices dropping due to low demand
and fierce competition between European producers. In the
U.S., prices remained stable initially but declined in the
latter half of the year due to lower alloy surcharges. In the
same time, prices in Asia were volatile, with initial
increases followed by declines due to weak demand and
strong supply. Overall, 2024 was marked by a downward
trajectory in stainless steel prices across all major regions,
reflecting the broader market challenges and economic
conditions.
Global apparent consumption of stainless steel flat products amounted to 43.0 million tonnes in 2024, growing +4.1% vs. 41.3 million tonnes in 2023. Demand in EMEA and APAC increased by 5.3% and 4.4%, respectively, while in the Americas it decreased by 1.4%. (Source: CRU Stainless Steel Flat Products Market Outlook November 2024)
2025: modest growth amid persistent risks
In 2025, the global economy is expected to grow steadily
but slightly below trend. Europe faces economic struggles,
with weak consumer sentiment and a struggling
construction sector. The US is on track for a soft landing,
with steady growth in services and recovering
manufacturing. China is to maintain a steady GDP growth
at 4.5%, but structural issues are to persist. Industrial
production and construction are set to improve, but
geopolitical uncertainties, particularly trade tensions and
protectionism, pose significant risks to economic stability.
Europe’s economic outlook is modest, with GDP growth
expected at 1.4%, industrial production recovering at 1.6%,
and core inflation remaining above target. However,
significant risks include geopolitical uncertainties,
particularly trade tensions and protectionism, which could
disrupt economic stability. Additionally, structural
challenges in key sectors and potential political instability
within the region pose further threats to sustained growth.
The demand outlook for the U.S. in 2025 is optimistic,
driven by expected growth in industrial production and
fixed capital investments. In contrast, China’s demand
outlook remains cautious due to structural economic
challenges and potential trade tensions.
While stainless steel demand is expected to recover
gradually, prices are expected to see a moderate increase
in 2025, but not a significant surge.
(Source: CRU Stainless Steel Market Outlook November 2024, CRU
Global Economic Outlook December 2024)
Latest updates
Outokumpu always publishes latest quarterly outlook in connection with its interim report.
For latest market comments, check out our CEO's review and latest interim reports.