INDUSTRY NEWS
Trump tariffs are blow to steel markets
The high level of uncertainty and major disruptions caused by the new U. S. tariffs have dealt a severe blow to recovery expectations in the steel market for 2025.
“ Against the backdrop of broader economic resilience driven by services, industry remains weak, weighing on steel demand and consumption. Recovery is not expected before 2026, and only if positive developments emerge in the global geoeconomic outlook,” commented EUROFER, The European Steel Association, on 5 June 2025.
According to EUROFER’ s latest Economic and Steel Market Outlook, the recession in apparent steel consumption will continue in 2025(-0.9 %) for the fourth consecutive year(-1.1 % in 2024), contrary to earlier forecasts of growth(+ 2.2 %). A similar trend is expected for steel-using sectors, with another recession in 2025(-0.5 %, after-3.7 % in 2024) instead of a projected recovery(+ 1.6 %). Steel imports remained at historically high levels( 27 %) throughout 2024.
“ The new U. S. 50 % tariffs on steel are a further blow to the European steel market outlook, which was already weak. External factors( such as global overcapacity, high energy prices and geopolitical tensions) continue to affect EU producers, who can no longer bear this situation and are left with no choice but to close capacity, lay off workers and halt decarbonisation projects. In light of the continuous worsening of the EU steel market outlook, we call on the European Commission to consider emergency trade actions to ensure the stability of the EU steel market, should EU-U. S. negotiations fail and further uncertainty and economic disruptions materialise”, said Axel Eggert, Director General of the European Steel Association( EUROFER), following the publication of the‘ Economic and Steel Market Outlook Q2 2025’.
EU steel market overview
“ In 2024, apparent steel consumption saw growth only in the fourth quarter(+ 0.5 %), reaching 30.1 million tonnes. The overall evolution of steel demand remains subject to very high uncertainty, with no improvement expected before the first quarter of 2026. Consumption volumes are expected to remain far below pre-pandemic levels,” said the report.
“ Domestic deliveries followed a similar pattern and contracted again(-2 %) in the fourth quarter, recording another overall annual decrease in 2024(-2.8 %). During the same period, imports continued to rise significantly(+ 6.3 %), with an overall annual market share out of steel demand for 2024 standing again at a historical high of 27 %,” it continued.
According to EUROFER, the performance of steel-using sectors remained negative throughout 2024, with another drop(-4.9 %) in the fourth quarter.
“ Due to an overall gloomier industrial outlook, all steel-using sectors underperformed, particularly automotive(-2.6 %) and construction( flat), contributing to a deeper-than-projected recession in the whole year 2024(-3.7 % vs.-3.3 %). U. S. tariffs and associated uncertainty are now expected to impact the Steel Weighted Industrial Production index( SWIP) in 2025, with another projected recession(-0.5 %), versus previous expectations of growth(+ 0.9 %). A modest rebound(+ 1.3 %) is expected in 2026,” concluded EUROFER. n
www
. eurofer. eu
Sustainability efforts drive business success
A new research report,‘ The Future of PLM and Digital Engineering’ from product lifecycle management( PLM) and digital thread solution specialist Aras, highlights the growing connection between sustainability efforts and business performance. Its research found that 88 % of PLM users believe their systems adequately support sustainability compliance, compared to only 60 % of non-PLM users.
According to the study, 92 % of organisations say that successful sustainability programmes are essential to business success( an increase from 87 % in 2024) The report also shows that digital maturity, particularly through PLM solutions, plays a critical role in meeting compliance demands and accelerating sustainability initiatives.
“ Sustainability today is about aligning regulatory compliance with operational excellence,” said Roque Martin, CEO, Aras.“ Organisations that embed sustainable practices into their day-to-day operations
Image: Shutterstock. com.
are better positioned to adapt, compete and grow— regardless of how the requirements evolve.”
The research found that 88 % of PLM users believe that their systems adequately support sustainability compliance, compared to only 60 % of non-PLM users. These organisations are more capable of tracking product data, collaborating with suppliers and addressing increasingly complex regulations such as the EU’ s Corporate Sustainability Reporting Directive( CSRD) and the Digital Product Passport.
“ Digitally mature companies are also leading in technology adoption. Among PLM users, 87 % are leveraging AI for product development( substantially higher than the 59 % adoption rate among non-users). The findings reinforce that PLM has evolved beyond its engineering roots to serve as a strategic foundation for digital transformation,” said Aras.
Despite this progress, many organisations still face challenges in operationalising sustainability goals. Only 37 % said their compliance initiatives are“ well supported,” and 18 % acknowledged that their systems are inadequate, said the report. Challenges include missing or poor-quality data, disconnected tools and lack of oversight. n
www. aras. com
12 | ismr. net | ISMR July / August 2025