Development trend of steel industry in 2025

In 2025, the steel industry is navigating a complex landscape shaped by geopolitical tensions, technological advancements, and environmental imperatives.

Impact of Tariffs and Trade Policies

The imposition of tariffs has significantly influenced global steel markets. For instance, President Trump’s tariffs on foreign steel and aluminum have escalated costs for American builders, leading to increased project budgets and delays. Matrix Development’s CEO, Joseph Taylor, reported an 8-10% rise in steel costs for a warehouse project in Newark, resulting in a $2 million budget increase.
Similarly, Australia has introduced a $750 million subsidy to protect its steel and aluminum industries from U.S. tariffs, aiming to support low-emissions technologies and secure jobs.

Technological Innovations and Green Steel

Technological advancements are steering the industry towards sustainability. British Steel’s proposal to power the Teesside Beam Mill with green hydrogen, replacing natural gas, exemplifies this shift. Scheduled to commence in 2024, this initiative aims to reduce carbon emissions significantly.
Additionally, hydrogen direct reduction (HDR) methods, utilizing green hydrogen, are emerging as emission-free iron-making processes, with companies like ArcelorMittal and Voestalpine leading the way.

European Union’s Industrial Strategy

The European Union is implementing measures to bolster its manufacturing sector amid global trade tensions. Stéphane Séjourné, the EU’s new industry commissioner, is advocating for pragmatic protectionism to support European industries, including the steel sector. Plans such as the Clean Industrial Deal aim to enhance Europe’s climate commitments by accelerating permits and prioritizing European companies for public procurement.

In summary, the steel industry’s trajectory in 2025 is characterized by adaptive strategies to mitigate trade challenges, a commitment to sustainable practices through technological innovation, and policy initiatives aimed at reinforcing regional manufacturing capabilities.