The steel industry in the United Kingdom is at risk of losing key export markets due to the European Union’s plans to reduce import quotas. Despite intentions to lower import volumes, about a third of steel procurement in the UK currently comes from foreign suppliers.
This is reported by Finway
Self-sufficiency and investment challenges
According to UK Steel CEO Gareth Stace, the country still largely depends on imported steel. Domestic production covers only about 30% of internal demand, while in the US this share reaches 80%, and in EU countries — 75%. Such a level of self-sufficiency, according to the expert, does not allow for attracting new investments in the industry.
“I believe we should allow significant imports from the EU, and the EU, in turn, should open the market for exports from the UK. I hope for cooperation with countries whose economies are similar to ours – with those who do not want to see dumping or subsidized steel in the market that destroys the industry and halts investments,” he noted.
Stace emphasizes that 80% of British steel exports are directed to EU countries. Reducing quotas could lead to job losses if the parties do not reach a compromise on mutual market access.
Challenges for British Steel and environmental standards
It is expected that from July 1, after the implementation of new quotas, the share of British steel producers in the domestic market will increase. The government aims for 50% of domestic consumption to be supplied by domestic enterprises. At the same time, British Steel is losing ground in the construction steel segment due to increasing environmental requirements for products. Architects are increasingly favoring “green” steel, which is associated with production in electric arc furnaces (EAF).
Gareth Stace emphasizes that the Welsh government has already decided to use only steel from electric arc furnaces for public projects. He believes that such a policy could lead to further increases in imports if there is no support for British Steel’s transition to EAF technologies.
Stace warns that without changes in building regulations, the company will continue to lose market share to European and other foreign producers. European suppliers will sell “green” steel to the UK while using their own blast furnace steel domestically. This situation, according to the expert, not only does not reduce global emissions but also harms the competitiveness of British industry.