In metals, the demand for aluminum declined by 33.5% and steel demand declined by 4.8% in Q1 2025 as compared to the same quarter of the previous year. Aluminum demand declined due to a combination of factors, including rising alumina costs, supply chain disruptions, and China's production nearing its regulatory ceiling. Steel production was down in Q1 2025 due to weak demand from steel-using sectors, like construction and automotive, global economic uncertainty, and rising energy and logistical costs. Specifically, China's output is expected to fall due to weak construction demand, and India and North America face slower growth due to low infrastructure spending and tariff changes. In terms of demand for composite materials, glass fiber demand grew by 4.9%, carbon fiber demand increased by 3.8%, demand for epoxy increased by 5.7%, UPR demand grew by 3.7%, and SMC demand increased by 2.4% in Q1 2025 as compared to Q1 2024. Demand for composite materials increased, driven by growth in sectors, like aerospace, construction, wind energy, electrical, and electronics segments, from a YoY perspective. In Q1 2025, demand for composites is expected to follow the same trend as Q1 2024 as shown in the following figure.
Source: Lucintel
Figure: Year-over-Year (YoY) Demand Change of Metals and Composites in Q1 2025 and Q2 2025 (e)
