The steel industry has navigated 2025 with a combination of price volatility, changing trade policies and uneven end-market demand. Steel prices have swung widely through the year as a slowdown in top consumer China, U.S. tariff actions, weaker demand across construction and automotive, input cost volatility and supply adjustments shaped market sentiment. 

Against this background, certain steel companies defied the odds and delivered impressive performances in 2025. These include Commercial Metals Company (CMC Quick QuoteCMC - Free Report) , ArcelorMittal S.A. (MT Quick QuoteMT - Free Report) , Nucor Corporation (NUE Quick QuoteNUE - Free Report) and Steel Dynamics, Inc. (STLD Quick QuoteSTLD - Free Report) .

Steel Industry Navigates Price and Demand Volatility

Steel prices started 2025 on a weak note, continuing the softness witnessed in late 2024. The Trump administration's imposition of a 25% tariff on all steel imports into the United States in March 2025 led to a surge in benchmark hot-rolled coil (HRC) prices to a peak of nearly $950 per short ton. While the administration's early June doubling of steel tariffs to 50% and the consequent steel mill price hikes triggered only a temporary lift, it failed to effectively drive up HRC prices further to new highs as intended. Overall demand weakness and abundant steel mill output put a pause on a sustained price rally, dragging HRC prices below $800 per short ton in late August and continuing through early September. 

Nevertheless, steel prices are in a gradual recovery mode in the fourth quarter on major steel mills' price hikes amid a recovery in construction and automotive demand, extending lead times and tightening supply, partly due to plant outages. The recovery, which is more pronounced since November, has led to HRC prices eclipsing $900 per short ton lately.   

Steel demand in China, the world’s top consumer of the commodity, softened due to a slowdown in the country’s economy following a protracted property crisis and weak global demand. The real estate sector has taken a hard hit amid a decline in new home prices, property investment and housing sales. Real estate accounts for roughly 40% of China's steel consumption. A slowdown in manufacturing activities has led to a contraction in demand for steel in China. The manufacturing sector has taken a beating due to weaker external demand for manufactured goods and a slowdown in infrastructure spending. 

China has also seen a slowdown in the construction sector. Depressed demand in China and an oversupply in the market, exacerbated by increased Chinese steel exports, exerted pressure on global steel prices this year. Europe, which faced persistent economic headwinds and elevated energy costs, saw sluggish industrial activity, reducing demand for steel products. 

A slowdown in global automotive production curtailed steel consumption in this key end-market. High interest rates, along with concerns over economic slowdown and tariffs, put pressure on the automotive market in 2025. The construction sector has experienced a slowdown in the United States due to high interest rates, dampening steel demand in this market. Elevated borrowing costs and inflation have taken a bite out of the residential construction industry. 

On a positive note, demand from non-residential construction remained resilient with strong order activities. Infrastructure projects in the United States are on the rise, driven by government initiatives to upgrade transportation and utility networks. Firm demand in non-residential construction is expected to continue in 2026. In the energy space, pipeline and drilling activities remain steady, aiding demand for tubular steel. Demand in the automotive sector is also gaining traction lately, and the recovery momentum is likely to continue next year as auto build rates increase.

4 Steel Stocks Worth a Look

While 2025 brought challenges for the steel industry amid significant price volatility and subdued demand across key markets, a few companies demonstrated remarkable resilience and delivered impressive returns on the bourses. We have taken the help of the Zacks Stocks Screener to shortlist stocks that have gained more than 40% this year. Also, these stocks currently carry a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).

You can see the complete list of today’s Zacks #1 Rank stocks here.

YTD Stock Price Performance of CMC, MT, STLD & NUE

Image Source: Zacks Investment Research

Commercial Metals: Texas-based Commercial Metals is gaining from the robust demand in North America for each of its major product lines. Commercial Metals’ focus on augmenting its core capabilities while expanding growth in markets, customer groups and applications will aid growth. CMC is implementing price rises across its mill products, which will aid growth. The acquisition of CP&P creates a scalable platform for CMC in a fragmented industry with strong profit margins. Commercial Metals has also inked a deal to acquire Foley Products Company for a cash purchase price of $1.84 billion. This buyout will provide CMC with an immediate platform scale in a strategically attractive industry. CMC’s strong liquidity, financial position and focus on reducing debt through a strategic capital allocation approach also augur well.

Commercial Metals currently sports a Zacks Rank #1. It has an expected earnings growth of 95.9% for fiscal 2026. The Zacks Consensus Estimate for fiscal 2026 earnings has been revised upward by 29.9% over the last 60 days. CMC’s shares have rallied 40.2% year to date.

ArcelorMittal: Luxembourg-based ArcelorMittal is among the leading integrated steel and mining companies globally. MT is expanding its steel-making capacity and focusing on shifting to high-added-value products. Its strategic expansion projects are expected to boost profitability and cash flows. MT is optimizing its decarbonization strategy to maintain competitiveness and profitability. The company is committed to returning shareholders’ value while maintaining a strong balance sheet. Its cost-improvement efforts are also expected to support margins.

ArcelorMittal currently carries a Zacks Rank #3. The company beat the consensus estimate for earnings in three of the trailing four quarters. In this time frame, it has delivered an average earnings surprise of roughly 20%. MT has an expected earnings growth of 45.1% for 2025. Shares of MT have shot up 94.5% so far this year.

Steel Dynamics: Based in Indiana, Steel Dynamics is a leading steel producer and metals recycler in the United States. Steel Dynamics' customer-focused approach, along with market diversification and low-cost operating platforms, positions it for future growth opportunities. The company should also gain from its investments in beefing up capacity and upgrading facilities. STLD is seeing strong customer order activity for flat-rolled steel. It is currently executing several projects that should add to its capacity and boost profitability. 

STLD is ramping up operations at its new state-of-the-art electric arc furnace flat-rolled steel mill in Sinton, TX. The value-added flat-rolled steel coating lines, consisting of two paint lines and two galvanizing lines, also enhance the annual value-added flat-rolled steel capacity. The company is ramping up volumes from these lines, which are expected to provide earnings benefits. 
 
Steel Dynamics carries a Zacks Rank #3. The company outpaced the Zacks Consensus Estimate in three of the trailing four quarters. In this time frame, it has delivered an average earnings surprise of roughly 2.3%. STLD has an expected long-term earnings growth of 16.3%. Shares of STLD have rallied 50.1% so far this year.

Nucor: Charlotte, NC-based Nucor is well-placed to benefit from considerable market opportunities from its strategic investments in its most significant growth projects. Nucor, the biggest steel producer in North America, remains committed to boosting production capacity, which should drive profitable growth and strengthen its position as a low-cost producer. The company is executing a series of growth projects to tap significant end-market demand. NUE, a Zacks Rank #3 stock, has also been focusing on growth through strategic acquisitions over the past several years. Moreover, Nucor is maximizing its returns to its shareholders by leveraging its strong balance sheet and cash flows. It remains committed to returning at least 40% of annual net earnings to its shareholders.
 
Nucor beat the Zacks Consensus Estimate in three of the trailing four quarters. In this time frame, it has delivered an average earnings surprise of roughly 31.4%. The consensus estimate for 2025 earnings has been revised upward by 5.6% over the last 60 days. NUE’s shares have gained 40.8% year to date.