Expected Steel Trends for 2025

When predicting trends in the steel market, it’s important to remember that even the smallest disruption can change the course of expected events. Steel is a global industry, and an event in one country that provides steel to the rest of the world could affect the entire steel market for months.
With that caveat out of the way, we can say with some confidence that the steel market is expected to grow next year, at least in some areas. Even some industries that may prove slower than usual show promise in some segments.
Increased Automotive Output
In 2024, American car manufacturers produced more than 10 million vehicles, representing more than 66% of all North American production. While we still aren’t certain of what 2025 will bring, most sentiment seems to support increased car production and sales, which will also increase the demand for steel.
Across all steel products, automotive manufacturing represents up to 25% of the demand. As car manufacturing increases, so will the demand for steel. With greater demand for the steel being produced comes potentially higher prices.
Slowed Overall Manufacturing
On the whole, manufacturing slowed during 2024, though there were some periods of increase. The need for steel in manufacturing also declined during these down periods, which led to an overall decrease in steel needs for the year.
What does this mean for 2025? Without a crystal ball, it’s hard to know for sure, but sentiment seems to support a gradual increase in manufacturing, which could also impact the need for steel. Again, some periods of 2024 saw significant increases, even if overall manufacturing was on the decline, so we may not see a full picture until the end of the year.
Strong Small Business Performance
While the overall numbers for manufacturing may have trended downward in 2024, one particular group—and a large one, at that—experienced a significant increase in production. Small manufacturing businesses make up more than 90% of American businesses and employ 46% of private-sector manufacturing workers.
As expected, small businesses that posted increases in production in 2024 required more steel. And again, while there is no tried-and-true way to predict what 2025 holds, we do expect to see additional increases in small business manufacturing.
Continued Inflation
We can’t talk about what’s coming in 2025 without addressing inflation. This was the word of the year for 2024 and most products are expected to experience rising costs, though at a much slower rate, in the new year. This is likely to affect steel prices, particularly steel that is manufactured internationally.
Higher steel prices will affect the prices of the products that steel is used to make, which will then be passed to the buyers. While we expect to experience an increase in auto production and manufacturing—particularly from small business manufacturers—we must be prepared for the cost.
All of these potential trends—and others we haven’t covered—can affect the price of steel, which then informs the cost of your projects. You can mitigate some of the mystery by choosing surplus steel wherever possible to ensure you have the products you need on hand while saving up to 40% on your material. Give us a call today so you can plan 2025 with confidence.