Representatives of UK Steel and the Independent Steel Trade Association (ISTA) discussed the possible consequences of the proposed steel import restrictions in the latest edition of the MEPs podcast "Talking about Steel".
UK Steel CEO Gareth Stace, ISTA President Godfrey Watt joined Member of the European Parliament, steel market analyst John Carruthers-Green and Editor-in-Chief Tom Sharp to discuss the new strict tariff quotas (TRQS), which are due to be introduced on July 1.
Watt told the podcast that the Ministry of Business and Trade, during a meeting of ISTA members, published a plan (DBT) for an overall reduction of duty-free imports by 60% and tariffs exceeding quotas by 50%. He said that a thorough study of quotas for specific types of products, published on April 7, caused a "massive reaction" from steel importers and shareholders.
Watt said that the proposed tariffs on various steel products are significantly below the level of consumption in the UK, as a result of which buyers of rolled products and steel profiles, in particular, are subject to significant duties exceeding quotas. While he supports the UK government's commitment to protect domestic steel producers, he said they are currently unable to meet the country's needs. Watt added: "We should never compare ourselves with the EU. In the EU, if you are a consumer, you have a choice, in most cases, from more than one factory. In the UK, we only have one factory for each of the main production sectors."
Recent reports from members of the European Parliament have detailed how the publication of the UK's preliminary tariff quotas has caused some panic buying among carbon steel buyers. The new requirements may also significantly undermine the market for long products made of stainless steel.
Speaking on a podcast for MEPs this month, Stace acknowledged that some of the DBT's pre-requirements were prohibitive, adding that UK Steel itself. Suggested amendments. However, he welcomed the UK government's "really bold" approach to addressing rising imports and a global steel capacity glut.
Stace said: I've been doing this job for 11 years now. This is the most serious political problem I have encountered.
"I am very surprised that some commentators are throwing mud at us, instead of saying what needs to happen so that the entire steel supply chain is in the future.
