What’s Driving the Volatility in Steel Pricing and How to Navigate It

A Vital Yet Volatile Commodity

Steel tubes are a foundational material across countless industries – from construction and automotive to infrastructure and energy. In 2025, however, the price of steel tubing is anything but predictable. Businesses that depend on this material are facing challenging procurement decisions due to sharp pricing swings, limited supply, and geopolitical pressures.

While some fluctuation in commodity prices is to be expected, this year’s market has taken unpredictability to another level. For companies buying steel tubing in volume, knowing what’s driving these price changes is essential to staying competitive and profitable.

Recent Steel Tubing Price Movements

As of early 2025, the cost of steel tubing has been steadily climbing. According to Industrial Tube & Steel, hot rolled coil (HRC) prices have risen to $719 per ton, reflecting a nearly 10% increase from mid-2024. Structural tubing mills have also announced base price increases of $60 per ton across the board.

Meanwhile, input costs are surging. Scrap steel—one of the key raw materials in steel tubing production – reached $349 per ton in February, further compounding pricing pressures.

Key Drivers Behind the 2025 Price Fluctuations

1. Rising Raw Material Costs

Steel tubing prices are directly linked to the cost of raw inputs like iron ore, scrap steel, and energy. As Industrial Tube & Steel reports, these input prices have risen steadily, contributing to higher tubing costs across North America.

2. Supply Chain Disruptions

A report by Jianzhi Pipe Fittings highlights another key issue: lingering disruptions in global shipping and logistics. These disruptions are reducing availability, especially for imported steel tubing products. Port congestion, material shortages, and unpredictable shipping times are now a regular part of doing business.

3. Increased Demand from Global Infrastructure Projects

Emerging markets are seeing a boom in infrastructure investment, driving up demand for steel products globally. As construction activity accelerates, particularly in Asia and parts of South America, steel tubing is in high demand – placing additional pressure on an already tight supply chain.

4. Tariffs and Trade Uncertainty

The steel market is also reacting to newly announced U.S. tariffs on imported steel and aluminum, going into effect in March 2025. According to Times Union, industry leaders are worried these policies could drive up domestic prices and increase volatility, especially if other countries respond with retaliatory trade actions.

Is Relief in Sight? The 2025 Forecast

While the market remains volatile, some analysts suggest that pricing could soften slightly later in the year. Metal Center News projects that hot rolled coil prices may average between $750 and $800 per ton for 2025 – down from early-year highs, but still significantly elevated compared to historic norms.

In other words, while the worst of the price surges may pass, overall costs are expected to remain relatively high through the end of the year.

The Impact on Businesses and Projects

Steel tubing is an integral part of many commercial, residential, and industrial projects. When pricing becomes unstable:

Budgets can be thrown off course, especially for large-scale projects with tight margins.
Procurement timelines get disrupted as teams wait for more favorable pricing or navigate backorders.
Long-term contracts can become risky, locking businesses into unfavorable pricing for extended periods.

For manufacturers and construction firms, the consequences aren’t just financial – they’re operational.

Your Steel Tubing Pricing Strategy

Navigating today’s market requires more than just watching price trends. Here are some effective strategies to stay up to date on steel tubing:

1. Track Pricing Weekly

Stay informed by monitoring steel indices and market updates from sources like Fastmarkets AMM, SteelOrbis, and Industrial Tube & Steel. Awareness allows businesses to anticipate changes and avoid reactionary decisions.

2. Diversify Your Supplier Base

Relying on a single steel tubing supplier can increase exposure to market risks. By developing relationships with multiple suppliers—both domestic and international – you can compare prices, availability, and lead times to get the best deal.

3. Lock in Pricing When Possible

Some suppliers offer fixed-rate contracts for a set period. If the terms are favorable, this can be an effective way to avoid future price hikes – particularly for businesses with predictable demand.

A Powerful Ally: The Role of a Buyer’s Agent

If managing steel procurement is becoming increasingly complex, businesses might benefit from a knowledgeable buyer’s agent. While not a solution for every situation, buyer’s agents offer valuable insight into timing purchases, sourcing from reliable suppliers, and negotiating bulk pricing.

They can help companies interpret market signals, avoid overpaying, and even uncover supply opportunities others may overlook. For those handling large volumes of steel tubing, working with a strategic sourcing expert can provide a competitive edge without adding internal overhead.

Final Thoughts

Steel tubing is – and will continue to be – a vital resource across multiple industries. But as 2025 unfolds, buyers must prepare for continued price volatility driven by raw material costs, logistical hurdles, and global policy changes.

By staying informed, expanding supplier networks, and exploring strategic partnerships like sourcing agents, businesses can take back control of their procurement strategies and maintain stability even in uncertain times.