On March 19, the UK government presented its new steel production strategy, according to which up to 50% of the steel used in the UK will be produced in the country, which will increase production from the current 30% in the market.
The UK Steel trade organization endorsed the new strategy, saying the government had shown "incredible courage in its approach to trade," but adding that the sector still needed more competitive energy prices, effective carbon control policies and stricter government procurement rules.
In line with its landmark strategy, the UK is introducing trade measures to preserve domestic steel production to ensure national energy security, defense, and transportation infrastructure. From July 1, the overall level of steel import quotas will be reduced by 60% compared to current arrangements, and steel imported into the UK above these levels will be subject to a 50% tariff.
The government is considering a transitional agreement, according to which the new tariff will not apply to goods under contracts concluded before March 14 and imported between July 1 and September. 30, 2026.
The UK government will also raise the maximum tariffs on most-favored-nation steel under the WTO to 50% in order to protect domestic industry from global overcapacity in the long term. For the same reason, it will consider introducing requirements to determine where imported steel is melted and bottled.
The new strategy also aims to ensure that electric arc furnaces are the future of British steelmaking, continuing the transition from blast furnaces to EDP-based production and allowing offshore wind energy developers to include steel producers in the next round of the Clean Industry bonus program, which starts this year to maximize the use of steel in the UK. metallurgy. renewable energy sources.
The sovereign wealth Fund will be the government's main vehicle for providing up to 2.5 billion pounds (3.3 billion US dollars) for investments in the steel sector, which already includes a deal supported by 70 million pounds of British export financing for British Steel to renovate Nigerian ports.
."With this strategy, we are closing a decade-long chapter of destructive deindustrialization and instead committing ourselves to strengthening and maintaining Britain as a steel-producing country," he said.
