The UK steel sector still needs imports, despite the planned reduction in quotas. Currently, about a third of the country's government steel purchases are made abroad. This is reported by Kallanish with reference to a statement by UK Steel CEO Gareth Stace.
Unlike the EU, the UK is still dependent on imported capacities. Stace called the current level of satisfaction of domestic demand in Britain with its own products (about 30%) insufficient to attract investment, compared with the figures in the United States (80%) and the EU (75%).
The head of UK Steel expressed concern about a possible reduction in quotas from the EU, since 80% of British exports go to this region. This can lead to job losses unless an appropriate agreement is reached between the parties.
Stace expects a rapid increase in the market share of domestic producers after the new quotas come into force on July 1. He recalled the ambitious goal of the government.: ensure that 50% of domestic consumption is covered by steel produced in the UK.
At the same time, he noted that British Steel is losing ground in the segments of construction steel (profiles and beams) due to "short-sighted" environmental requirements. Architects are increasingly demanding "green" steel, associating it exclusively with production in electric arc furnaces (EAF). Stace also stressed that the Welsh government already plans to use only steel from the EAF for all projects funded from the state budget.
Stace concluded that without urgent changes in construction specifications, British Steel will continue to lose market share in favor of imports from Europe or other regions. At the same time, European suppliers will ship "ecological" steel to Britain, leaving the blast furnace products for their own use. This approach does not contribute to reducing global emissions and only harms British industry.
