British manufacturers have become concerned about a possible reduction in trade between the United States and the EU and insist on taking urgent measures to limit imports.
The US is imposing 25% tariffs on March 12, while the revision of EU protective measures on steel is expected to significantly reduce import regulations. As a result, UK Steel, which represents the plants, noted that current import quotas "have been liberalized from year to year as UK steel demand has been declining, so there are real concerns that the protection offered is insufficient."
"We are considering options to tighten our current security measures and are working on a proposal to the government to further protect against trade reorientation after the expiration of the security measures for steel," the company added.
One potential option could be a comprehensive tariff on all imports, with the exception of hot-rolled rolled steel (HRC) for post-processing. This may be the fastest and most viable solution to the threat of redirection, given the time it may take to adjust quota volumes, according to some sources on the seller's side.
Recently, atypical HRC suppliers began offering their products in the UK, possibly due to the uncertainty surrounding the review of EU protective measures and the ongoing investigation into dumping against Egypt, Japan, India and Vietnam. Japanese HRCs have recently been offered at around £500/t ddp West Midlands, when they are not normally found on the market. Korean HRCs were also offered. Korean cold-rolled coils, and in particular hot-dip galvanized ones, have been offered at aggressive prices for several months.
"This government will not allow the cessation of steel production in the UK, so we have allocated up to 2.5 billion pounds of investment to rebuild the industry, while our steel advisory plant examines the long—term challenges facing the industry," said a spokesman for the Ministry of Business and Trade.
The Minister of Business and the Minister of Industry continue to meet with industry representatives to "ensure a transition to green steel that is suitable for the workforce," the representative added. Sources suggest that any comprehensive tariff may be justified on grounds of national security or decarbonization. In the latter case, it is unclear how to handle steel that pollutes the environment, or how to classify rolled products from semi-finished blast furnace steel in other regions.
