Demand / Growth Analysis of Metals and Composites – Q1 2026 and Q2 2026 (e)

In metals, the demand for aluminum increased by 1.2% in Q1 2026 as compared to the same quarter of the previous year. However, steel demand declined by 6.5% in Q1 2026 as compared to Q1 2025 due to slower construction activity, weak manufacturing output, high interest rates impacting infrastructure and real estate investment, and ongoing economic uncertainty across major markets, such as China, Europe, and the US. In terms of demand for composites materials, glass fiber demand increased by 2.4%, carbon fiber demand increased by 2.0%, demand for epoxy resin increased by 1.8%, UPR demand grew by 1.6%, and SMC demand increased by 1.1% in Q1 2026 as compared to Q1 2025. The global demand for composites materials has experienced a significant surge in Q1 2026, strongly driven by geopolitical tensions, defense re-arming, and the need for material sovereignty. The ongoing conflicts have created a surge in demand for military-grade platforms including fighter jets, unmanned aerial vehicles (UAVs), and armored vehicles, which are intense users of advanced composites materials. In Q2 2026, the demand for composites is expected to follow the same trend as Q1 2026 as shown in the following figure.

                                                                                                                                                                                                   Source: Lucintel
Figure: Year-over-Year (YoY) Demand Change of Metals and Composites in Q1 2026 and Q2 2026 (e)