Warehouses use a lot of equipment made with steel, including shelving, packing tables, and picking trolleys.
Many costs of a warehouse equipment manufacturer rose in 2024, including energy and wages. However, the price of steel in Europe declined by 11% last year and is expected to fall by another 4% in 2025.
Though there is a steady demand for tubular steel by warehouse equipment manufacturers, global steel demand has decreased, and this has caused a drop in steel prices. In China, demand for steel in 2025 is forecast to decline by 1.5%, and in the European Union by 3% to 4%. Overall world demand for steel is expected to fall by 0.7%. In North America, steel oversupply and a decline in steel sales have damped steel prices.
The steel industry is transitioning to green steel produced with low or zero carbon emissions. This is achieved by replacing traditional blast furnaces that use coke with ones powered by renewable energy, natural gas or hydrogen. However, green steel costs more to produce and this could cause future rises in steel prices. The use of more recycled steel in the production of new steel could reduce some of the costs of making green steel.
In the future, if only eco-friendly steel is available, this may increase the cost of warehouse equipment. Warehouse owners and their clients who prioritize the reduction of carbon emissions within the supply chain are likely to embrace this development and not mind paying a small increase in equipment prices.
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