According to the latest market assessment conducted by the British steel supplier All Steels Trading Ltd., serious structural changes are taking place in the UK steel market, as the current protective measures expire in June 2026, and the possibility of strengthening protectionist policies is also being considered.
The report warns of significant price increases caused by the EU CBAM that has already entered into force, pending UK amendments on protective measures and the planned introduction of the UK CBAM from January 1, 2027.
According to the report, EU and UK plants increased the production of long products by 40 pounds per ton, while the production of hollow and structural profiles increased in price by 50 pounds per ton. The British protective quotas for the first quarter were exhausted on the opening day of the exhibition for many categories of rolled products, while all types of steel were subject to a duty of 300,000 pounds.
Quotas can be halved, duties can double.
Industry analysts suggest that from July 1, 2026, the UK's protective quotas could be reduced to 50 percent, while duties exceeding the quotas could rise from 25 to 50 percent. If implemented, such measures will significantly change supply dynamics and pricing in the UK steel market.
Rising costs of raw materials – scrap, gas and transportation
The price pressure on raw materials and energy resources is increasing. Scrap metal prices are steadily rising, with an increase of $30 per ton leading to an increase in production costs of about 25 pounds per ton. Gas prices in Europe remain high at around 31.55 euros per MWh, while transportation costs have also increased.
Meanwhile, supply restrictions are tightening: 7-Steel has experienced work disruptions for four to five weeks, Tata Tubes is recovering from the January shutdown, and quotas allocated to Turkey have been exhausted in several categories, limiting new supplies. It is reported that steel production in the UK has declined, as production is a priority for railway and export contracts.
The report concludes that in 2026, pricing will depend more on protectionist policies than on fundamental demand factors. All Steels expects an overall price increase of 150-200 pounds per ton this year and has decided not to make forward sales in the third quarter due to regulatory uncertainty.
Author: SteelOrbis Editorial Team
Steelorbis.com
