CRU: Third of consumers put off purchases amid tariff upheaval, says Outokumpu

Other responses include more than half of respondents now re-evaluating their entire sourcing strategy, and 30% have already switched suppliers in reaction to shifting trade conditions.

The findings are contained in a white paper entitled The Evolution of Materials released by Outokumpu and based on a survey conducted by Kairos Future, a business consultancy in Sweden.

The results are based on responses from 49 of the 70 senior decision-makers approached at companies with a combined annual revenue of around $430 billion (€365 billion), including some of the world’s largest steel consumers, across energy, consumer goods, automotive, construction, and infrastructure.

The survey was conducted in May, during the initial wave of widespread tariffs introduced in the first few months of the Trump administration, a period which Outokumpu said marked a significant shift in global trade dynamics.

The extent of paused or delayed stainless steel orders raises concern about the progress of major infrastructure projects globally, the stainless steel producer added.

The survey also revealed regional differences, with North American companies locking in long-term prices to hedge against volatility while European respondents are 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,” said Kati ter Horst, president and CEO of Outokumpu. “Ongoing uncertainty and shifting regulation are causing disruption. Policymakers globally must act to safeguard vital infrastructure projects and prevent further delays.”

Despite short-term caution, two in three respondents anticipate higher stainless-steel intake over the next five years, with a third predicting a “significant” rise, Outokumpu added.