According to Carles Rovira, executive director of 7 Steel UK, imports will play a role in the British steel market, even with reduced tariff quotas.
"Import has always existed… And he has to play a certain role. I don't think quotas limit imports. I think the quotas are intended to strengthen the domestic industry," he says ahead of their introduction on July 1.
In a separate statement, he describes quotas as "a step in the right direction," but adds that "delivery now matters more than design." He warns that the government risks "holding back the growth of both producers and consumers" if the growth of the UK steel and manufacturing sector is not supported.
"I think having a strong domestic supplier is good for the entire supply chain, and obviously imported goods have to play a role," Rovira notes, adding that there is always a higher risk when buyers choose non-domestic materials.
He admits that finding suppliers in the domestic market will not suit every buyer, as some of them may be more price-conscious as their priority, but it will suit those who see value in buying British goods. "Every customer is different because they have different needs," he explains.
"There are very different situations in the recycling market. There are customers who import 100% of products, raw materials,[and]there are customers who import 40% of their products. I don't understand how for customers who import 30% or 40% of their products, this can mean major business changes. They're going to import a little less, but they're still relying on domestic supplies," he adds.
"Over time, imports will change, the country of origin, the product will change, and interruptions will occur. A domestic supplier should be around to support the supply chain and customers for many years, because we have been working here for 20 years and expect to work here for another 20," he continues.
The steel mill plans to redistribute some of its exports from Europe to the domestic market, as well as increase its inventory to be able to meet any growing demand.
Rovira adds that the final quota figures will be a signal of whether there are any additional investment opportunities. The company is reviewing the portfolio of its plants for the production of bars and long products, and therefore a slight increase in the production of long products and profiles is possible. Its owner, Sev.en GI, recently announced a $100 million investment in the steel company.
