Steel prices in the United Kingdom have risen significantly this month, as the publication of preliminary import quotas has increased concerns about possible supply shortages.
On April 7, the Department of Business and Trade (DBT) confirmed its plan to reduce the UK tariff rate of the quota (TRQ) by 60% and double tariffs exceeding quotas to 50% from July 1. These figures were first released in March, as part of the UK government's new steel production strategy.
However, the detailed information about the preliminary sales volumes for a particular product has caused alarm among many importers. Despite the low demand from end users, several respondents from among the members of the European Parliament said that the ads caused "panic" purchases among stock traders.
- This article first appeared in the April issue of the European Steel Review by MEPS. The monthly review contains steel prices, indexes, comments, and forecasts for 12 months, covering Belgium, France, Germany, Italy, Spain, and the United Kingdom. Contact the members of the European Parliament for detailed information on how to sign up.
Significant reduction in duty-free access to imports
The preliminary annual price for a hot-rolled roll, specified by the UK Government in category 1A of hot-rolled sheets and strips of non-alloyed and other alloys, has been reduced by 90% to 102,341 tons. The EU quota decreased by 91% to 68,226 tons.
In contrast, the 1B quota was increased by 3% to 2.36 million tons. This category was introduced in the fourth quarter of last year to meet the growing demands of processing plants following the shutdown of Tata Steel UK's blast furnaces in Port Talbot, South Wales.
Other significant reductions include a 97% reduction in annual revenue from the sale of 12 billion unalloyed blanks and light alloys. sections, up to 6,710 tons. The preliminary requirements also provide for an 84% reduction for category 17"corners, profiles and sections made of cast iron or non-alloy steel" to 123,190 tons; a halving for category 13 "fittings" to 267,980 tons; and a 42% reduction for category 16"unalloyed and other fittings". wire rod made of alloyed alloys - up to 178,975 tons.
Excluding quota category 1B for materials intended for post-processing, the new steel import quotas reduce access to duty-free steel imports by 60%. This exceeds the 47% quota reduction agreed upon by the member States of the European Union, along with a similar 50% tariff in excess of the quotas introduced on April 13.
Concerns about supply shortages and soaring prices
Steel Buyers and Traders in the UK now
