ISTA expresses concern about the final import quota values
The International Steel Trade Association of Great Britain (ISTA) has expressed concern about the introduction of tariff quotas (TRQ) on steel imports into the country, Kallanish said in a statement.
ISTA says that while it appreciates the actions taken in connection with the transitional agreement after receiving feedback, it is "very disappointed" with the size of tariffs and the separation of countries.
"ISTA requests were rejected very limited, mainly at the request of UK Steel," the association said in a statement.
It notes an increase in the production of galvanized steel of category 1, HRC, and a slight decrease in the production of galvanized steel from the European Union, which is not fully used. It notes a slight increase in sales in category 4 for South Korea and some changes regarding long products in categories 12, 17 and 26, which increased, while in category 28 they decreased.
ISTA states that it remains concerned that, although some HS codes have been removed, others have been added, as well as a number of new categories.
"Despite the fact that we support British steel production, British plants are poorly prepared to serve the market both in terms of what and when end users need, and financially in terms of providing the usual loan payment terms," the statement said.
Thus, there may be a shortage of steel and a massive switch to products made from steel produced abroad.
"These measures still apply to products that are not manufactured in the UK, partly due to the presence of all these HS codes," adds ISTA.
The Association will continue to interact with the Department of Business and Trade and the Ministers on these issues and will insist on a review of the measures no later than in six months.
"This is not a good day for an industry they passionately believe in," concludes ISTA.
One trader tells Callanish that the new quotas are "much more effective" in some categories, while others remain too limited. However, according to him, it indicates the risks of oversupply in the near future.
"People were making stocks based on pre-quotas," says the trader. "This caused widespread panic and mass purchases, which led to an increase in stocks. Quotas have now been relaxed, and there will be more sales opportunities in addition to the transitional agreement."
Another source says that quotas are "a shock to the market, people will have to change their business models."
Another says it's "too early to tell" how quotas will affect supply and prices.
The online publication of USP Steel says that steel supplies to the UK