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British metallurgy will lose about 5 percent of revenues annually due to Brexit


British steelmakers exported 2.6 million tonnes of steel products to the EU in 2017, accounting for about a third of total production.

British metallurgy will lose about 5 percent of revenues annually due to Brexit

Experts warn that a tough Brexit will undermine the UK steel industry, causing at least £ 70 million a year in losses. According to them, the metal trade will be “seriously disrupted due to additional administration, costs and delays at the border.”

The UK exported steel to the EU in the amount of £ 1.8 billion in 2018. According to the British association UK Steel, the UK's exit from the EU without a deal would add about 5 percent to the price of each ton of British rolled metal.

The association's report says that the main problem for steel producers is that the deal there will be no Brexit, there will be additional costs and difficulty in moving any goods from the UK to the EU, estimated by UK Steel at £ 70 million for the industry annually.

Loss of access to EU free trade agreements in trade with other countries will lead to "imposing tariffs on other important steel markets."

Protectionist sentiment is on the rise worldwide, especially in the form of 25% steel tariffs in the US.

“Leaving the EU without a deal represents the most extreme and negative end of this spectrum, causing such damage the steel sector, that any nascent signs of recovery that we have seen over the past two years will be completely erased, leading the sector into crisis. It would not be an exaggeration to say that the long-term future of UK steel production is in jeopardy, ”the association said.

Leaving the EU without a deal at the end of March would mean that the UK steel industry will face one form or another. trade restrictions on virtually all export markets, which account for 97% of its steel trade, severely limiting its ability to seek new export opportunities and adapt to evolving market conditions.

The trade authority also warned that UK metals no longer will be deemed to come from the EU - meaning that they could be used for projects subject to the rules of 'of origin' stipulating that certain steel must come from the block.

“As a result, EU demand for UK steel may weaken, "UK Steel predicts.

Union Secretary General Roy Rickhass said that Brexit without a This is a disaster for British steelworkers.

“Millions of tons of British steel are sold to the EU every year. Anything that makes these processes slower or more expensive could mean job losses here in the UK. The steel industry is undergoing a fragile recovery after a difficult few years, the chaos of leaving the EU without a deal risks pushing us back into the midst of a crisis, ”the union boss warned.

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