Category: Latest Updates

Alterations to the UK’s provisional steel import quota measures are highly likely ahead of the policy’s implementation on July 1, 2026, British steel association UK Steel said this week.

In March, the UK government unveiled a sweeping support package for its steel sector, combining a long-term industrial strategy intended to increase domestic output and safeguard local supply chains with a stricter import quota system.

Under the import measures from July, overall quota levels for steel imports will be reduced by 60% compared with current arrangements and steel coming into the UK above these levels will be subject to a 50% tariff, the UK government said on March 19.

The tariff applies “to imported steel products where they can be made in the UK,” it said.

Downstream pushback

But the proposed regulation has attracted significant opposition from the UK’s downstream steel industry, including stockholders, processors and traders, who argue that the policy would imperil their businesses, as reported by Fastmarkets in early April.

The UK has domestic capability to produce a number of commodity-grade steels. These include: rail and wire rod from a basic oxygen furnace (BOF) process in Scunthorpe, northeastern England; rebar from a scrap-fed electric-arc furnace (EAF) in Cardiff, Wales; and hot-rolled coil produced by rolling semi-finished materials in Port Talbot, Wales.

But it does not currently produce a range of special steel grades due to a lack of local capacity and the mothballing of Liberty Speciality Steel UK (SSUK) in Yorkshire.

Following industry pressure, the government on June 2 introduced a transitional exemption within the UK’s new steel trade measures, whereby relevant goods under contract before March 14, 2026, will be fully exempt from the 50% out-of-quota duty between July 1 and September 30, 2026.

But the tweak did little to quell opposition to the stricter quotas and market participants ramped up their objections further this week following a fire on June 3 that damaged a major processing line at Tata Port Talbot, which is expected to hamper local flat steel supply.

Acceptance from UK Steel, which represents upstream UK steel producers that stand to benefit from greater import protection, that the quota system could be reshaped entirely is the latest twist to the policy’s fate.

“The steel quota numbers published on March 14 by the UK government were provisional and while officials noted that there was a high bar to change, we have fully accepted that there will be alterations before the measure is introduced on July 1,” UK Steel said on Wednesday June 10.

“UK Steel has made comprehensive proposals to the Department for Business and Trade to remove certain commodity codes, make amendments to quota sizes and utilize authorized use schemes that will allow certain sectors specific access to the steel they require,” the group said.

Panic buying

Delays in confirming the quotas are hurting industrial confidence and raising steel prices in the UK even before any rule changes have taken effect, according to market participants.

The UK’s Construction Leadership Council (CLC) steel tariffs working group has said that uncertainty around quota availability has triggered “panic buying” behavior for steel in the UK ahead of July, increasing short-term demand and extending procurement lead times, according to a report by trade media Construction News on June 9.

“There are now just 21 days until the new steel quota arrangements are due to come into force on July 1 and, as far as I can tell, we still do not have the final details,” Nigel Roberts, managing director of Megasteel Prestressing Wire & Strand, based in Malmesbury, southwestern England, said via social media on Thursday June 11.

“At this stage, the delay probably tells us something. My suspicion is that the volume of feedback from manufacturers, importers, distributors and steel users has caused those involved to take another look at what was originally proposed,” Roberts said.

But even if major changes are made to the quota rules, “uncertainty comes at a cost,” he said.

“The irony is that delay now risks creating two groups of losers,” he said. “If the government presses ahead with the original proposals, industry has endured weeks of uncertainty while waiting for confirmation.”

“If the government changes its mind, what about all the businesses that have spent time, money and effort putting mitigation plans in place based on the original announcement? What about the companies that have accelerated purchases, increased stock levels or adjusted supply arrangements in anticipation of what was coming?” he added.

“Misguided quota reductions, compounded by the inevitable imposition of tariffs, have left metal stockists and manufacturers facing increasing commercial pressures, tighter margins and the prospect of job cuts across the supply chain,” Stephen Morley, president of the Confederation of British Metalforming (CBM), said on May 18.

Special grades

Although the quotas are designed to protect markets for UK-based steelmakers, several downstream companies across the UK have said that the tariffs encompass grades and sizes of steel not currently manufactured within the UK.

Derbyshire-based engineering firm West Special Fasteners Ltd, via social media on June 9, called for the quotas to be “amended, delayed or canceled at the earliest opportunity. It’s vital to the whole of the UK manufacturing industry and only 22 days until they start.”

The company produces a variety of specialist products such as hex nuts, hex bolts and slotted fasteners using high grades such as corrosion-resistant stainless steel and high-strength alloys, which it says cannot currently be procured from the UK.

Yorkshire-based stockholder Cleveland Steel & Tubes, a major importer of steel grades, would be facing a spike in costs and reduced competitiveness due to the quotas, according to Roy Fishwick, the firm’s managing director.

“For one specific size of steel that we supply, the entire 2026 quota has been swallowed by a single infrastructure project on Merseyside,” Fishwick said in an interview with local newspaper The Northern Echo on May 29.

The UK imported 7.15 million tonnes of iron and steel products in 2025, according to UK customs data cited by Global Trade Tracker. This was an increase of 10.9% year on year from 6.45 million tonnes the previous year, partly driven by Tata’s switch to importing semi-finished materials for HRC production after it closed its BOFs in late 2024.

Support for local mills

On the other hand, domestic crude steel production in the UK has been on a downtrend in recent years, partly driven by plant closures.

UK steel output fell to 2.50 million tonnes per year in 2025, down by 38% year on year, according to the World Steel Association.

But despite the significant downstream opposition to the quota system, UK Steel argues that the policy is already helping the upstream British steel sector.

“The announcement of this measure has already led to a number of UK steelmakers ramping up capacity, creating jobs and reshoring supply chains in this critical industry. We expect more announcements of mothballed capacity returning to production in the near future,” Gareth Stace, UK Steel director, said on Wednesday.

The bill to grant the UK government powers to nationalize steel companies such as British Steel continues to progress through parliament, with the government running the firm’s BOF complex in Scunthorpe.

Meanwhile, Cardiff-based steelmaker 7 Steel UK in late May announced plans to invest almost £100 million ($134 million) in its British operations, targeting plant upgrades and technology improvements.

And Norwegian steel startup company Blastr was understood to be the preferred bidder for the previously Liberty-owned SSUK’s EAF complex in Yorkshire, Fastmarkets heard in April.

European domestic rebar prices remained steady in the week to Wednesday June 10, despite continued upward pressure from Italian mills amid weak demand and low buyer appetite.

Market participants said that consumers remained in a wait-and-see mode, with no significant improvement in demand across Europe due to high prices and slow project development.

“This slowdown in demand is further compounded by the adverse weather conditions of this period, which are inevitably affecting operational activities,” one buyer source told Fastmarkets.

In Italy, tradable prices remained within the wide range of €710-770 ($820-889) per tonne ex-works, depending on the region, with deals continuing to be concluded within these levels and buyers resisting higher prices.

In the north, offers were reported at around €710-730 per tonne ex-works, while in the south, mills’ prices remained at about €750-770 per tonne ex-works, with limited volumes traded at the upper end of the range.

Higher indicative offers were heard, with mills attempting to raise the minimum price to €720 in the north and €760 in the south, although market acceptance remained limited.

Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar) domestic, exw Italy was €710-750 per tonne on June 10, unchanged week on week.

In Spain, tradable prices for steel reinforcing bar (rebar), domestic, delivered Spain, remained at €750 per tonne (16mm base), in line with Fastmarkets’ assessment.

In Germany, domestic rebar prices were also stable, with tradable levels reported within the range of €710-730 per tonne delivered.

Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar) domestic, delivered Northern Europe was €710-730 per tonne in the week to June 10, unchanged from the previous week.

Steel wire rod followed the overall trend in European long steel markets and remained unchanged over the same period.

Fastmarkets’ weekly price assessment for steel wire rod (mesh quality) domestic, delivered Northern Europe was €705-720 per tonne delivered on June 10, unchanged compared with the previous week.

In Southern Europe, tradable levels were reported within the range of €690-720 per tonne delivered, with transactions heard at the upper end of the range.

Fastmarkets’ weekly price assessment for steel wire rod (mesh quality) domestic, delivered Southern Europe was €690-720 per tonne, stable week on week.

The European Commission has proposed the 21st sanctions package against Russia, focusing primarily on energy revenues, the financial sector and sanctions-circumvention networks, while introducing new trade restrictions affecting certain metals, alloys and metal ores, Kallanish notes.

In a statement released on Tuesday, European Commission President Ursula von der Leyen says the package would introduce additional export restrictions on metals and alloys used by Russia’s aerospace and defence industries, alongside new import bans covering certain metals and metal ores.

“We are targeting more metals and alloys used in the aerospace and defence sectors,” von der Leyen states. She adds that the proposed import restrictions are intended to “lock in Europe’s diversification away from Russian imports”.

The commission does not specify which metals, alloys or ores would be affected by the publication deadline. The proposed measures form part of a broader package covering goods worth around €60 million ($69.2m), including certain metals, metal ores and automotive parts.

The sanctions package’s main measures target Russia’s oil revenues and financial system. The commission proposes adding 30 more vessels to the sanctions list, restricting sales of LNG tankers to Russia, targeting infrastructure involved in Russian oil trade, expanding transaction bans to 31 additional Russian banks, and imposing measures on third-country banks, crypto firms and oil traders accused of helping Russia circumvent existing sanctions.

The proposal will require approval from EU member states before entering into force.

Author: Elina Virchenko

kallanish.com

Thyssenkrupp Materials Services, Germany’s largest steel distribution company, with locations elsewhere in Europe and in North America, has renamed itself tk accelis, effective immediately.

Participants in the closing panel discussion of Kallanish Europe Steel Markets in Vienna this week anticipated steel prices to pick up towards the end of the year. Their views however diverged on the degree of increase and what factors would play a crucial role.

The panellists were unanimous about the impact of EU trade measures on imports, including the Carbon Border Adjustment Mechanism (CBAM) as well as the new tariff rate quota system due from July. The effect will not be felt immediately, but likely after the summer break, when buyers will think about replenishing their inventories, said Philip Edmonds of M7 Metals. His guess is that by the end of the year, hot-rolled coil in Europe could reach €800/tonne ($925/t).

Alexander Soboll of Salzgitter Mannesmann, in principle, agreed with Edmonds’ view that buyers will evaluate their stock levels in September, but said he is more conservative, expecting €750/t. In particular, he warned that mills might revive capacities they had ramped down, which would undermine efforts to stabilise prices.

The argument was picked up by Kamal Arifi, director commercial transformation at SSAB Europe. If European mills reactivate more capacity than now, “we will lose the benefits we get from the safeguards”, he noted.

In that regard, Edmonds is more optimistic. “I think EU mills will be disciplined. They are much better at getting €100 more per tonne than producing another half a million tonnes,” he said.

Another factor was pointed out by Emanuele Norsa of Siederweb: scrap prices, which he finds are too low and not correspondingly aligned with steel prices.

“We need first to see scrap pick up more. The differential at this moment is too big,” Norsa said. In his assessment, HRC prices at year-end will be between €700/t and €750/t, “but not higher”.

 

Swedish green steel producer Stegra has announced a new logistics partnership with state-owned rail freight operator Green Cargo to support transportation requirements for its upcoming steel plant in Boden.

Under the agreement, Green Cargo will manage the movement of both inbound raw materials and outbound finished steel products, becoming a central component of Stegra’s future logistics network.

Rail network to connect Boden plant with key Swedish ports

Stegra has already secured logistics agreements with the ports of Luleå, Skellefteå and Umeå, which will serve as major gateways for raw material imports and steel exports. Green Cargo will provide the rail connections between these ports and the Boden steelworks, creating an integrated transportation chain that links maritime and rail infrastructure.

According to Stegra, the involvement of an experienced freight rail operator will help optimize logistics flows and strengthen supply chain reliability once commercial production begins.

German energy company EWE and Salzgitter Flachstahl GmbH, a subsidiary of German steelmaker Salzgitter AG, have announced that they signed a long-term agreement covering the annual supply of 10,000 mt of green hydrogen, marking a significant step forward for both Germany’s hydrogen economy and the decarbonization of steel production.

The agreement represents the first major offtake contract for hydrogen produced at EWE’s 320 MW electrolysis facility in Emden, which is currently under construction. It is also Salzgitter AG’s first large-scale external hydrogen procurement agreement.

Hydrogen deliveries are scheduled to commence in 2030 via Germany’s hydrogen core network and will continue under an initial seven-year contract period.

At the EU quota period between April 1 and June 30 some of the import quotas for certain steel products allocated for Vietnam, Turkey, South Korea, India, Taiwan and China have been exhausted, while over 85 percent of quotas for some steel products have been used up.

Looking at the exhausted quotas, Vietnam has used up all of its 111,491 mt quota for HRC (1A) allocated under “other countries”. Turkey has exhausted its quotas of 43,511 mt for CRC (allocated under “other countries”), 15,732 mt for organic coated sheets, 94,493 mt for rebars and 38,124 mt for other welded pipes. Meanwhile, South Korea has used up all of its 178,637 mt for metallic coated sheets (4B), 71,099 mt for organic coated sheets and 16,121 mt for tin mill products. India has exhausted its quotas of 78,670 mt and 19,042 mt for organic coated sheets and gas pipes, respectively. Taiwan has used up all of its 13,403 mt quota for tin mill products, while China has exhausted 8,460 mt quota for large welded pipes (25B).

The countries’ EU steel import quota usage over 85 percent can be seen in the table below.

 

The European domestic market for steel hot-rolled coil (HRC) remained quiet on Tuesday June 9, with buyers postponing new deals because of high stocks and uncertainty over the details of the upcoming new safeguard regulations, particularly in regard to country-specific quotas.

In such conditions, indications of tradeable prices in Northern Europe were notably lower compared with mills’ targets. Both buyers and sellers said that workable prices were well below the €700-730 ($807-842) per tonne ex-works sought by the mills, hovering within the range of €670-685 per tonne ex-works but with no major sales heard during the day.

“The price pressure is mainly from a well-stocked market because both traders and service centres have built high levels in anticipation of this year’s challenges,” one buyer source said.

Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Northern Europe, was calculated at €688.50 ($795.59) per tonne on June 9, down by €3.50 per tonne from €692.00 per tonne on June 8.

The index was up by €1.00 per tonne week on week but down by €1.08 per tonne month on month.

The Italian HRC market was also quiet, with no major transactions heard during the day.

The most recent offers were reported at €700-710 per tonne delivered (€685-695 per tonne ex-works) versus indications for achievable prices heard at €665-680 per tonne ex-works.

Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Italy, was calculated at €681.88 per tonne on Tuesday, up by €1.05 per tonne from €680.83 per tonne on Monday.

The index was up by €4.38 per tonne week on week but down by €4.47 per tonne month on month.

“Transactions are so narrow that it is really difficult to report the price, which in general I would consider stable,” a buyer source said. “Everybody is waiting for the pricing increase to come through as soon as the safeguards come into effect. Depending on product, [price changes are] expected between the middle of July and the beginning of August.”

The import trade was largely said to be muted, with rumors heard about cancellations of some recent Indonesian HRC deals.