33.3% of Outokumpu Clients Freeze Stainless Steel Imports Due to Tariffs

At least one-third of surveyed companies have paused or delayed stainless steel orders because of US import tariffs of up to 50%, while more than half are reassessing their sourcing strategies, Finnish steelmaker Outokumpu said, Alessandro Parodi reported for Reuters.

Outokumpu President and CEO Kati ter Horst told Reuters that slowing global demand means current European Union (EU) import quotas are too high, and she expects the European Commission to announce measures in October to curb steel imports from rivals in order to protect domestic producers.

These measures will replace current safeguards due to end next summer and may take effect as early as a quarter sooner, she added.

A third of businesses had already switched steel suppliers by May, while the August addition of hundreds of derivative products to the US list of goods subject to tariffs created uncertainty for equipment and machinery buyers, ter Horst said.

Outokumpu operates the only mine in Europe and North America that extracts chromium, a critical mineral used in stainless steel and exempted from US tariffs.

The company has developed a low-emissions alloy containing 99% chromium, compared with 53% previously, and plans to scale up production from one kilo per day to one ton per day in an upcoming pilot plant, ter Horst added.