In metals, the demand for aluminum increased by 0.8% in Q3 2025 as compared to the same quarter of the previous year. However, steel demand declined by 0.9% in Q3 2025 as compared to Q3 2024 due to weak manufacturing volumes, depressed construction activity, and geopolitical uncertainty. In terms of demand for composite materials, glass fiber demand declined by 4.0%, carbon fiber demand decreased by 3.7%, demand for epoxy decreased by 4.6%, UPR demand down by 3.5%, and SMC demand decreased by 2.8% in Q3 2025 as compared to Q3 2024. The decline in composite material demand in Q3 2025 was driven by weaknesses in key sectors like marine, macroeconomic headwinds such as high interest rates and inflation, and inventory reduction cycles by major retailers and manufacturers. In Q4 2025, demand for composites is expected to follow the same trend as Q3 2024 as shown in the following figure.
Source: Lucintel
Figure: Year-over-Year (YoY) Demand Change of Metals and Composites in Q3 2025 and Q4 2025 (e)
