British Chambers of Commerce warns UK steel quota changes to disrupt SME costs, logistics
The British Chambers of Commerce has urged the UK government to revise planned changes to steel import quotas and tariffs that were set to take effect on July 1, warning that the new regime could impose significant financial and logistical pressure on small and medium-sized companies in steel-consuming sectors.
In a June 17 statement, the BCC said the proposed system would reduce tariff-free import quotas by 60% overall, with some steel product categories facing cuts of up to 90%. At the same time, tariffs on imports above quota limits are set to rise from 50% to 25%, creating what the business group described as a “double hit” for companies already dealing with high costs and fragile supply chains.
In March 2026, the UK government announced a new steel trade measure that takes effect on July 1, 2026, to help UK steel producers and shield them from global overcapacity. The new tariffs and quotas must be in place by the beginning of July, when the current safeguards, negotiated while the UK was still part of the EU, expire.
Europe will put in place new safeguards starting July 1, 2026, that will lower import quotas by limiting tariff-free import volumes to 18.3 million mt annually, a 47% reduction compared with 2024 steel quotas. The measures would also apply a 50% customs duty — instead of the current 25% — to imports above the quota and to steel goods not covered by it. The new EU tariffs will also introduce a new “melt and pour” rule.
BCC said it wrote to Business and Trade Secretary Peter Kyle in May to raise concerns that the new arrangements could create “real financial and logistical problems” for downstream industries, including construction, engineering, and manufacturing. These sectors rely heavily on imported steel products, which the BCC said cannot be obtained domestically.
The proposed UK quota reduction is steeper than the EU’s, and the chamber has warned that the difference could leave UK businesses at a competitive disadvantage, particularly when domestic supply is unavailable or insufficient to meet specific product needs.
In its letter to the business secretary, the BCC recommended reducing the scale of the quota cuts to better align with international partners and lowering or phasing in the proposed 50% tariff on imports above quota.
The group also called for extending transitional easements for existing orders from three months to at least 12 months, alongside the publication of a full impact assessment of downstream sectors.
The BCC said it had received a response from the government, but added that it did not adequately recognize the “cliff-edge” facing affected businesses. The chamber said time was running out to lay the statutory instrument in Parliament that would confirm the final details of the regime.
William Bain, head of trade policy at the BCC, said the July 1 deadline was rapidly approaching and that the government’s remaining opportunity to avoid “huge self-inflicted damage to the economy” was narrowing.
“Affected sectors rely heavily on imported steel products that can’t be obtained domestically, and some will be facing millions of pounds in additional costs when quotas are exhausted,” Bain said.
He said that some companies had told the BCC they would not be able to continue operating under the proposed regime, while others said they may have no choice but to relocate to the EU.
UK-EU agreement seen as long-term solution
The BCC said the government should accelerate efforts to reach a UK-EU agreement to remove tariffs on steel trade. Bain said the long-term solution should include dedicated UK quota shares within the EU’s new quota system, which he said would reduce costs for UK industries that import steel from the EU.
The chamber said it is seeking a meeting with EU Ambassador Pedro Serrano to press for such an agreement. In the meantime, Bain said the UK government should keep an extension of transitional easements under consideration.
The BCC also said the Indian government had paused implementation of its free trade agreement with the UK following concerns over the impact of the new steel quotas on its trade.
For UK steel consumers, the immediate concern is that tighter quota limits could be quickly exhausted after July 1, exposing importers to the higher 50% tariff and increasing costs across supply chains that depend on imported steel.
EU safeguards were first put in place to avoid a domino effect from the Section 232 tariffs imposed during the first Trump administration and from steel overcapacity, now estimated by the OECD to be 721 million mt in 2027. While Europe as a bloc is far more self-sufficient — the EU 27 together produced 126 million mt in 2025, with some mills not operating at full capacity amid low demand, and EU apparent demand estimated at 132 million mt — the UK produced just 2.6 million mt of crude steel, supplying only 30% of the UK’s annual demand of 10.3 million mt.
Author: Annalisa Villa
European long steel prices stable; weak demand limits mills’ push
Market participants reported uncharacteristically weak demand for this time of the year, with limited buying due to high prices, adverse weather conditions and slow progress in construction projects.
“Usually June and July are good selling months, but at the moment demand seems to be more typical of winter,” one trader source told Fastmarkets.
In Italy, tradable prices varied within the wide range of €710-770 ($823.50-893.10) per tonne ex-works, depending on the region.
Deals continued to be concluded within established ranges, with buyers adopting a wait-and-see approach.
In northern Italy, price ranges were €710-730 per tonne ex-works, unchanged week on week. In the south of the country, tradable levels were within the range of €750-770 per tonne ex-works, although no meaningful volumes were traded at the upper end of the range.
Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, ex-works Italy was €710–750 per tonne on Wednesday, unchanged week on week.
Fastmarkets’ assessment of steel reinforcing bar (rebar), domestic, delivered Spain remained at €750 per tonne, in line with tradeable prices.
In Germany, domestic rebar prices were also steady, with tradable levels reported within the range of €710–730 per tonne delivered and limited variation across the market.
Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, delivered Northern Europe was €710–730 per tonne in the week to Wednesday, unchanged from the previous week.
Meanwhile, steel wire rod prices were largely unchanged across Europe in the assessed period.
In Northern Europe, tradable prices were reported within the range of €705-720 per tonne delivered, with no significant change from the previous week.
Fastmarkets’ weekly price assessment for steel wire rod (mesh quality), domestic, Northern Europe was €705-720 per tonne delivered on Wednesday, unchanged week on week.
Fastmarkets’ weekly price assessment for steel wire rod (mesh quality) domestic, delivered Southern Europe was €690-720 per tonne, stable week on week.
European sections and beams
European domestic section prices remained stable over the past month.
Fastmarkets’ assessment of steel sections (medium), domestic, delivered Southern Europe was at €800–840 per tonne delivered, unchanged from the previous month.
Domestic beam prices also held month on month, with tradable levels reported at €790–820 per tonne delivered across Europe.
Fastmarkets’ monthly assessment for steel beams, domestic, delivered Northern Europe was €790–820 per tonne, unchanged month on month.
Author: Nia Radenkova
European steel HRC market falls silent ahead of safeguard decision details
In Northern Europe, estimates of tradable prices were still in the range of €680-690 ($780-791) per tonne ex-works, but no fresh business was heard during the day.
Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Northern Europe, was calculated at €686.50 ($787.34) per tonne on June 18, down by €1.50 per tonne from €688.00 per tonne on June 17.
The index was down by €1.92 per tonne week on week and by €2.25 per tonne month on month.
In Italy, offers varied within the range of €665-690 per tonne ex-works, depending on supplier, with some bids as low as €655-665 per tonne ex-works.
But no fresh trades were heard during the day because all eyes were on the details of the new safeguard regime.
Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Italy, was calculated at €675.00 per tonne on Thursday, down by €8.75 per tonne from €683.75 per tonne on Wednesday.
The index was down by €7.50 per tonne week on week and by €5.63 per tonne month on month.
Offers of Turkey-origin HRC were heard at €600-610 per tonne CFR Italy. Indian material was heard available at €595-603 per tonne CFR.
On a DDP basis, offers from these countries came at €680 per tonne and €700 per tonne respectively.
Material from Southeast Asia, including Vietnam and Thailand, was offered at €680-700 per tonne DDP. And Algerian HRC was available at €700-710 per tonne DDP in Italy and Spain.
The most expensive offers came from Japan at €740 per tonne DDP.
At the same time, customers showed limited interest in imported material, with indications of workable prices at €640-650 per tonne DDP.
A buyer from Italy said that anything above €650 per tonne DDP was unworkable, considering a cost around €20 per tonne for delivery to the buyer’s site from the port. Higher import prices lose competitiveness to domestic ones while incurring potential risks.
Fastmarkets’ weekly price assessment for steel hot-rolled coil, import, cfr main port Southern Europe, was calculated at €595-600 per tonne on June 17, up from €563-600 per tonne on June 10.
And the assessment for steel hot-rolled coil, import, ddp Southern Europe, widened downward to €650-680 per tonne on June 17, from €660-680 per tonne on June 10.
Author: Vlada Novokreshchenova
Romanian longs market remains under pressure despite unchanged prices
Despite the continued weakness of demand, prices in the Romanian longs spot market and the local producer’s prices have remained largely unchanged this week.
Market participants indicate that ongoing financial constraints in the construction sector and the approaching summer season have continued to limit purchasing activity, while activity at a number of construction projects is reported to have slowed. At the same time, many traders are still holding relatively high inventory levels, reducing the need for additional purchases and contributing to the subdued pace of trading. Aggressive offers from Italian suppliers and expectations of more competitive import prices have meanwhile continued to weigh on the domestic market, keeping sentiment cautious and transaction volumes limited.
As a result, rebar spot prices in Romania have remained stable at €635-640/mt ex-warehouse, while wire rod prices continue to be heard at €685-690/mt ex-warehouse.
Meanwhile, domestic producer Beltrame Group has maintained its rebar offer levels at around €640-650/mt ex-works, with no significant changes reported compared to the previous week.
On the other hand, conditions in the import market have remained largely unchanged, with buyers continuing to monitor market developments rather than actively pursuing new purchases. Expectations of lower prices and the generally subdued demand environment have continued to weigh on buying interest, resulting in another week of relatively limited trading activity. Meanwhile, offers from Bulgaria for rebar have softened slightly to €650-660/mt CPT Romania, compared to €655-665/mt CPT reported last week. Some market participants have also reported Italian rebar offers at approximately €645-650/mt delivered, although these levels could not be confirmed by the time of publication. On the non-EU side, Egyptian rebar offers have remained stable at €535-555/mt CFR Romania, while wire rod offers continue to be heard at €555-565/mt CFR. Turkish rebar offers have meanwhile been heard at €530-555/mt CFR Romania, compared to €535-545/mt CFR reported last week, based on an exchange rate of €1 = $1.15 and estimated freight costs of €25-30/mt.
Author: SteelOrbis Editorial Team
Bulgarian longs prices stable as weak demand keeps pressure on trading activity
Conditions in the Bulgarian longs market have not changed much over the past week, with demand continuing to lag behind market expectations.
Tight liquidity across the construction sector and ongoing uncertainties regarding budget-related payments have continued to restrict purchasing activity, leaving buyers focused mainly on immediate requirements. At the same time, suppliers have found it increasingly difficult to secure new orders, as cautious sentiments and limited cash availability have kept transaction volumes at relatively low levels. Against this backdrop, the market has remained largely stagnant, with little indication of stronger demand emerging in the short term.
As a result, domestic rebar prices are still heard at around €625-635/mt CPT Bulgaria, while wire rod prices continue to stand at approximately €670-690/mt CPT. Although official indications have not changed, some suppliers are reported to be showing greater flexibility in order to secure sales in an environment where buying interest remains insufficient to generate stronger market momentum.
Meanwhile, in the import market, activity in the Bulgarian longs market has remained limited this week, with no fresh bookings reported since the latest purchases of Italian origin material. While buying interest has remained subdued, some market participants expect import prices to soften further in the coming period, which could encourage a resumption of purchasing activity.
Among non-EU suppliers, Turkish rebar offers are currently heard at $580-600/mt FOB, compared to $585-595/mt FOB reported last week. Taking into account freight costs of around €20-25/mt, these levels translate to approximately €520-545/mt CFR Bulgaria, versus €530-540/mt CFR heard previously. Egyptian rebar offers are currently estimated at $590-600/mt FOB, while wire rod offers are heard at $610-615/mt FOB. Based on prevailing freight rates of around €25-30/mt, these indications correspond to roughly €530-550/mt CFR Bulgaria for rebar and €550-560/mt CFR Bulgaria for wire rod. Compared to last week, rebar levels have remained broadly stable, while wire rod offers have moved slightly lower from €555-565/mt CFR.
As for EU origin material, Italian rebar offers are currently heard at around €655/mt CPT Bulgaria, down from approximately €665/mt CPT reported a week earlier. Estimated Romanian rebar prices, meanwhile, have remained stable at €660-670/mt delivered to Bulgaria.
Author: SteelOrbis Editorial Team
Wire rod buyers warn of European manufacturing collapse
European wire rod buyers are increasingly alarmed by poor downstream order books, with the slump in demand stretching across several months and, in some cases, years, sources tell Kallanish.
Buyers say the structural erosion of the manufacturing sector is being overlooked by policymakers. The European Commission’s focus, sources suggest, appears oriented toward strengthening producer protection, mirroring US trade policy. Despite existing European tariffs, sales volumes of wire rod and downstream derivatives show no recovery signs, with buyers describing the market environment as distorted by market protectionism.
Some European producers acknowledge that volumes remain thin and that further price increases are difficult to sustain.
Exports within Europe are being used to compensate for weak domestic demand. Sales toward Eastern European markets, traditionally supplied from Asia, are being concluded at prices often significantly below those in western and northern Europe to shift volumes.
One southern European processor is reporting a 30% year-on-year decline in volumes during June and as much as 50% compared to May. A northern European processor reports a similar picture. He describes a slow but steady erosion in volumes over recent years.
This has seen EU capacity rationalisation, with Riva’s Belgian plant, Thy-Marcinelle, reducing production steadily for several years and is now in the process of closing altogether.
The crisis is now structural for the German manufacturing sector. “On the global scale we have lost competitiveness. On the export side the products we manufacture are no longer superior. On the import side, finished products from Asia come at a fraction of our price. They have the technology, and they don’t have the bureaucratic complexities of Europe,” a source says. They add that European bureaucracy has made producing in the region overly expensive and complicated.
“You protect the mills and they increase prices because costs are too high, but you don’t have customers and the entire value chain is suffering,” the source adds.
As in southern Europe, order intake in the north is weak, with companies increasingly focused on shipping previously sold material rather than securing new business.
Market participants see no reversal of the current European trajectory, with sources saying the old industrial model is no longer viable. “We need a new model; we need to simplify things and protect our industry,” one source argues.
The automotive, white goods, kitchen equipment sectors are all scaling back on orders in June, due to elevated prices and high stock levels due to sluggish consumption further down the chain.
“Manufacturing activity downstream is seriously concerning but nobody is talking about it and there are no ideas for a solution. Today we need a significant price reduction to rebalance the market but even with a €70-80/tonne [$80.9-92.4/t] reduction, consumption will not resume,” a wire rod buyer says.
“Demand is stranded because there is a general reduction of the manufacturing sector in Europe and protectionism has never been the answer. In Europe we are not self-sufficient in energy or technology. Closing our borders and increasing prices is not bringing any results,” the source adds.
Drawing quality wire rod prices are currently between €700-730/t delivered in Europe.
An Italian buyer says prices are not moving because buying has effectively stalled.
Sources anticipate further consolidation and capacity optimisation across Europe in the coming years as the manufacturing base continues to age, consumption contracts and export competitiveness deteriorates.
ISTA warns against transitional agreement fraud
UK trade association ISTA is warning against potential fraudulent use of the recently announced transitional agreement ahead of the new steel trade measures coming into force, Kallanish learns.
The recently confirmed time-limited agreement allows goods under contract before 14 March 2026, or if imported into free circulation between 1 July 2026 and 30 September 2026, to be exempt from the new 50% out-of-quota duty. The tonnages do not count towards quota allowances for quarter one of the new tariffs.
ISTA says it has voiced concerns of the measure being abused to the Department for Business & Trade, with other trade associations also backing the proposals. The associations are working to ensure there is no abuse of the measures and any companies involved in attempts to falsify entries are identified and reported.
To use the exemption, importers must hold verifiable evidence demonstrating that the consignment was ordered before the cut-off date.
This may include, but is not limited to:
· written contracts (including sales contracts)
· invoices
· proofs of payment
· customs warehousing records
HM Revenue and Customs (HMRC) can request evidence that the eligibility conditions are met, including after the goods have been released, and traders must retain and provide evidence on request.
In order to clear goods through customs under this transitional arrangement, written contracts must be provided along with the usual customs clearance documents signed.
Random audits of customs clearances may also take place and any cases of impropriety will be fully investigated by HMRC, while the DBT will also monitor incoming shipments.
Calls continue to grow for revisions to the proposed quota allowances from across the steel using sectors over concerns about availability and price implications.
Author: Carrie Bone
Automotive suppliers urge EU to incentivise production
The European association of automotive suppliers (CLEPA) is urging the EU to incentivise domestic production ahead of the crucial EU Council meeting this week, Kallanish learns.
As negotiations advance, CLEPA is calling on the European Parliament and Council to lock in the Commission’s robust definition of what qualifies as “European vehicle” to protect the industrial value chain, including critical technologies, from unfair competition and reduce pressure to offshore manufacturing jobs.
“Europe urgently needs a credible framework to incentivise production in Europe under the Industrial Accelerator Act (IAA),” the association adds.
Currently, 75% of the parts in European-built vehicles are produced locally, as confirmed by a recent Roland Berger study.
“In other words, vehicle components represent the largest share of value creation, jobs, and investment in Europe’s automotive ecosystem. A methodology that broadens the calculation base while keeping the threshold unchanged means far less incentive to source and produce components in Europe, potentially leading to increased delocalisation of manufacturing,” it claims.
Imports of automotive components from China into the EU reached €8.2 billion ($9.4 billion) in 2025, shifting the EU’s bilateral trade balance in this sector from a surplus of nearly €7 billion to a deficit of €0.7 billion in just five years.
The stakes for the European automotive supply industry are exceptionally high: without fair competition, the EU risks losing up to 350,000 jobs by 2030 and a significant part of its manufacturing capability which also impacts its strategic autonomy negatively, CLEPA warns.
“To prevent this scenario and secure Europe’s future as a manufacturing and innovation hub, the IAA must cover the automotive component market and close backdoors that allow cheap and highly subsidised non-EU imports,” it says. “Furthermore, we call for calibrating Foreign Direct Investment thresholds in the battery and EV value chains to ensure genuine supply-chain resilience. This must be paired with fostering authentic industrial cooperation with trusted trade partners, like the UK and EFTA countries, through a targeted, risk-based approach that prevents trade circumvention.”
The IAA is not a silver bullet but a critical first step – structural measures to improve the EU’s competitiveness as a location for manufacturing and investment are urgently needed to keep the core of automotive innovation firmly anchored in Europe, CLEPA says.
Author: Svetoslav Abrossimov
German machinery industry registers tepid spring improvement
Germany’s mechanical engineering industry saw a gentle increase in orders in the first four months of the year, but the overall picture does yet indicate a rebound from the long-term lull.
In the first quarter, the companies in this sector lifted orders by 4% in comparison with Q1 2025, Kallanish learns from their federation VDMA. The orders came mainly from abroad, rising 6% year-on-year, while domestic order activity actually suffered another dip, by 2% y-o-y.
VDMA also cautions that the positive quarterly figure is based on an irregularly strong intake in March. After two disappointing months, March saw an increase of 27% y-o-y, boosted by orders for large plant-building projects. “Such special effects are welcome, but they paint a rosier picture than the reality, and do not signal a broad upswing,” says VDMA chief economist Johannes Gernandt.
He notes the wars in the Gulf region and in Ukraine, as well as US protectionism are keeping industries away from making investments into production equipment. He also criticises the German government, which he says after one year in office has stood out more for internal disagreements, rather than for providing conditions that improve German machinery makers’ international competitiveness.
The mixed picture for the industry continued into April. Order intake was 4% higher than in the corresponding 2025 month. But again, foreign orders went up 8%, while domestic orders remained 7% below April 2025.
Gernandt therefore reiterates the industry’s demands to the government. “We need lower taxes for companies, more flexibility with the workforce, an alleviation of costs for bureaucracy, and a reform of the social insurance system,” he says.
Author: Christian Koehl
