Tata Steel UK launches research initiative to develop AI-driven low-carbon auto steel
Tata Steel UK has launched a research initiative named ADAPT-EAF (Accelerating the Development of Automotive and Packaging steel Technology for Electric Arc Furnace production) to create a new generation of high-performance steel products from electric arc furnace (EAF) technology, aimed at revolutionizing automotive body parts and packaging solutions like food cans, a company statement said on Monday, July 14.
ADAPT-EAF brings together Tata Steel UK and University of Cambridge, Imperial College London, and the University of Warwick, reflecting Tata Steel’s vision of leading green steel innovation in the UK, the statement said.
The announcement comes close on the heels of Tata Steel UK commencing ground breaking for its new EAF at its Port Talbot steel mill.
As the UK steel industry shifts toward EAF processes, ADAPT-EAF will tackle a critical challenge related to controlling residual elements in high-recycled-content steel, which can influence the quality and performance of steels used in automotive and packaging applications, the company said.
The project will develop an AI-powered platform to accurately predict how various scrap materials affect steel quality and processing. This digital tool will be combined with rapid alloy prototyping and testing to generate vital data and design new steel grades optimized for EAF production, it added.
Furthermore, Tata Steel UK and its academic partners will build a comprehensive digital and experimental platform to design innovative, low-CO₂ steel products that can be manufactured in the UK, it said.
UK Infrastructure Strategy to support domestic steel sector
The UK government’s new Infrastructure Strategy has been welcomed as supportive for the domestic steel sector, Kallanish observes.
Industry association UK Steel welcomed the move noting the developments worth “billions of pounds,” would bring opportunity for steelmakers. However, it noted that a competitive environment remains vital.
It highlighted that millions of tonnes of steel will be needed for the Infrastructure Strategy investments in new nuclear capacity, regional transport, schools and prisons, announced by the Government. The association also highlighted Chancellor, Rachel Reeves, saying in her recent Spending Review speech that these projects should be made using UK-made steel.
It added that the announcement offers businesses clarity over the Government’s long term public procurement plans and how steel companies can support these ambitions and grow their own production. However, it noted that ongoing market confidence for steel companies will be cemented with truly competitive electricity prices, strategic domestic public procurement and reinforced trade defences.
UK Steel director-general, Gareth Stace, said: “Where public money is involved, British contracts should buy from British steel firms, boosting thousands of jobs and supply chains across the United Kingdom. The Infrastructure Strategy and forthcoming pipeline means the steel industry can take full advantage of these opportunities.”
“UK steelmakers are holding up their end of the bargain, working closely with the Government on reforms to the Policy Procurement Note for Steel and a digital steel catalogue to ensure procurement teams know what steel we make and where,” he added.
“To secure the success of our steel companies and the Government’s ambitions, the infrastructure plans must go hand-in-hand with competitive electricity prices, strategic domestic procurement and a new trade defence mechanism in 2026 to handle the influx of imported, high-emission steel,” he concluded.
Meanwhile, the British Constructional Steelwork Association also welcomed the strategy and said it was a “strong signal of intent to deliver not only infrastructure, but also industrial resilience and regional growth.”
It praised the commitment to reform public infrastructure procurement, which it said valued whole-life performance over lowest upfront price. As well as clearer, longer-term project pipelines that support investment in UK-based fabrication capacity and skills.
It also welcomed the shift towards prioritising domestic supply chains to support sustainability, employment, and strategic national capabilities.
“The constructional steelwork sector is ready to build the infrastructure of the future – greener, safer, and made right here in the UK. Let’s seize this opportunity to turn strategy into delivery,” it added.
Carrie Bone UK
UK publishes draft CBAM primary legislation for technical consultation
The draft outlines the legislative framework for the CBAM tax on certain imported goods into the UK, which will become effective from January 1, 2027.
The tax will apply to direct and indirect emissions embodied in the imported CBAM good.
“This represents continued momentum for the adoption of CBAM mechanisms globally, as countries follow in the EU’s footsteps to use trade as a tool for climate policy. It also helps better align policies in the UK and the EU, smoothing the way to progress linking of the UK and EU emissions trading systems, which will be a topic for discussion at the UK-EU Summit in May,” Stuart Evans, Fastmarkets’ chief economist and head of environmental markets, said.
As it stands, goods imported to the UK are not subject to the UK’s Emissions Trading System (ETS).
The ETS operates through a “cap and trade principle,” whereby the cap is set by the ETS and participants can trade emission allowances as needed.
CBAM aims to prevent carbon leakage in the UK, since imported goods not subject to the UK ETS have also not been subject to a similar carbon price from the jurisdiction they were produced in.
A “CBAM” good is defined in Schedule 1 of the draft primary legislation as:
- Aluminium
- Cement
- Fertilizers
- Hydrogen
- Iron and steel goods
Specific CBAM goods will be subsequently identified by commodity codes.
The CBAM tax rate will be charged “at an amount equal to the sectoral domestic price” of the good and multiplied by the number of tonnes of CO2 embodied in the good.
The “sectoral domestic price” will be calculated by the Treasury for each CBAM sector every quarter.
This would involve using the previous quarter’s average UK ETS auction price.
The importer will be liable to the CBAM cost, but exemptions are available if the good has originated in the UK, it has been returned or the good has been imported outside the course of business.
Registration with His Majesty’s Revenue and Customs (HMRC) will be required if CBAM goods with an aggregate value of £50,000 ($67,033) or more have been imported into the UK over 12 months, or it is expected that this quantity will be met before the end of a 30-day period.
According to the draft legislation, registration must occur within 30 days of triggering the above threshold.
The first accounting period for the CBAM tax will run from January 1, 2027, to December 31, 2027; returns and payments will be due five months after the end of the first accounting period (May 31, 2028) to provide businesses and HMRC sufficient time to adjust to the new system.
From January 1, 2028, CBAM costs are required every quarter and are due two months after the accounting period ends.
Initially the consultation proposal outlined quarterly accounting periods from 2028 with a one-month return and payment window. But after concerns around data availability were raised, this has been amended to two months, to bring greater alignment between CBAM and other UK tax models and provide businesses more time to gather the data required to submit their return.
As part of the submission, the government will allow the use of the most recently verified emissions data, and the most recently verified information to determine the “deductible carbon price.” According to the draft legislation, independently verified data or default values can be used by the importer.
From 2027, the government will proceed with a single default value per good, and the methodology for its calculation and publication will be confirmed prior to the beginning of CBAM in 2027.
The government noted that it is considering moving to an alternative approach from 2028 onward.
Importers can reduce their CBAM liability through a carbon price relief if the embodied emissions of the goods they have imported have previously been subject to a “deductible carbon price.”
This could be either through another country’s ETS or taxation.
In a previous consultation, the government confirmed that only explicit carbon prices that place a price per tCO2e can be used as part of this relief. Other policies, such as fuel duties or carbon regulations, are not allowed to form part of any deductions.
The UK government also proposed an exemption for goods that originated in a jurisdiction with a linked carbon pricing scheme, since carbon leakage risk would be minimal because the ETS prices would converge.
The consultation will end on July 3, and feedback is encouraged from all affected stakeholders.
UK-EU carbon markets relationship
The EU’s equivalent CBAM policy will come into effect on January 1, 2026, which has prompted other countries to look at setting up similar measures and their own ETS.
But the European Commission is planning to review legislative proposals amending CBAM in the fourth quarter this year, Fastmarkets recently reported.
The proposed amendments will be in three directions — to address the problem of carbon leakage for CBAM goods exported from the EU to third countries; to introduce CBAM scope extension to certain steel downstream products, to address the risk of carbon leakage being pushed further down the value chain; and to propose anti-circumvention measures, including those against resource shuffling.
Harmonizing CBAM policies between the UK and EU would provide domestic producers a way to offset associated CBAM costs when exporting to the UK through domestic pricing schemes.
The UK is at risk to lose £3.5 billion-8 billion in revenue from 2025 to 2030 if it remains outside the EU carbon market, since UK ETS allowance prices are lower than those in the EU, a UK Energy report from October 2024 shows.
“The UK Emissions Trading Scheme (ETS) is 10 times smaller, more volatile and, since mid-2022, has been priced lower than the EU ETS… A lower UK carbon price leads to reduced revenues for Treasury and lessens the incentive to decarbonize,” the report reads.
“Analysis by Frontier Economics projects shows that the introduction of the EU CBAM will lead to £800 million being paid to EU member states on export across all impacted sectors between 2026 and 2030,” it continued.
For example, in January 2025, UK ETS allowance prices were just around £32.57 per tCO2e. In contrast, EU carbon emissions allowance prices hovered around €71.52 ($74.06) per tCO2e in Janaury 2025, peaked at over €81 per tCO2e in mid-February, and then dropped below €60 per tCO2e in early April.
The projected average price for the year is around €75 per tCO2e, which is 15% higher than in 2024, according to the outlook for European Union Allowance, the financial instruments within the EU Emissions Trading System.
Tata Steel UK signs contracts for pickling line
Tata Steel UK has signed contracts with Clecim and ABB Limited to supply the pickling line for its Port Talbot site in Wales, Kallanish learns.
This further progresses its ongoing £1.25 billion ($1.65 billion) transformation of the site, which envisages a 3 million tonnes/year capacity electric arc furnace commissioning by late 2027/early 2028.
As leader of the consortium, global supplier of steel processing lines and rolling mills Clecim, together with global technology company ABB, will supply essential equipment and expertise needed to power the site’s brand new 1.8m t/y pickling line.
The new line will process hot rolled coil to eliminate oxide scale formed during the steel rolling process, ensuring a clean surface for further processing, improving product quality, and enhancing the bonding of coatings or finishes.
Tata Steel chief executive Rajesh Nair says: “Our new and advanced pickle line will form a major part of our green steelmaking facility at Port Talbot, ensuring we can supply downstream businesses with the high-quality, low CO2 steel products our customers are demanding.”
“This collaboration represents another critical step toward securing a sustainable future for steel production in South Wales – made possible by the expertise and innovation provided by these best-in-class business partners,” he adds.
Clecim will design and supply mechanical and process equipment, while ABB will deliver electrification and automation technology required for the cutting-edge pickle line. With the pre-engineering phase of the project completed, both companies are now moving forward with detailed engineering.
Clecim chief executive Thomas Comte comments: “We are proud to help pioneer this project by combining engineering, sourcing, and mechatronic products manufactured in France, to make this phase of Port Talbot’s transformation a reality.”
“This achievement is a testament to the strong partnership we’ve developed with Tata Steel and ABB over the past several months. Together, we are working in an agile and innovative manner to successfully install the new pickle line,” he concludes.
UK steel service centre Malcolm Clarke to close
Manchester-based steel service centre Malcolm Clarke will close by summer this year, the company said in a letter to customers and suppliers.
The company said any existing and new orders will be fulfilled in full and on time, ahead of its target closure date of June 2025. The closure may be slightly later than this date after its “orderly winding down”, the company said. Suppliers will be paid before the closure, it added.
Malcolm Clarke in its financial results to June 2024, published on 2 April, announced that it would cease trading, so its accounts had been prepared “on a basis other than going concern”.
“The business environment in which we operate has become increasingly unstable, with unpredictable shifts in market and regulation making it very challenging for small- to medium-sized participants in the day-to-day spot market,” the company told Argus.
“Despite our best efforts to adapt and evolve, we do not envisage a short- to medium-term future where the situation is likely to improve significantly,” it added, suggesting changes to the market were structural and permanent.
The business, which was incorporated in September 1970, has two heavy decoiling lines and also sells reversing mill plate.
Source: argusmedia.com
UK HRC market remains lacklustre
The UK hot rolled coil market remains lacklustre, with little change to sentiment or prices despite US steel tariffs coming into effect, Kallanish learns from sources.
Participants note that market conditions have remained largely unchanged throughout March so far, with stability in HRC prices reflecting that.
Kallanish assessed UK S275 grade HRC at £525-570/tonne ($679-737/t) ddp Midlands on 13 March, unchanged week-on-week.
Recent quotes for material imported from Asia are towards the lower end of the range, while HRC from Europe has been towards the top end.
Demand continues to be limp on the UK market, with a lack of supportive factors to create any substantial upward momentum.
“There are lots of enquiries and no one booking anything,” one market participant tells Kallanish, noting that some European mills had filled order books until late May, and were no longer issuing fresh quotes. “They are sitting and having a think and revision of their next offer.”
This echo’s a similar trend on the EU market, where many mills held quotes whilst they were awaiting the outcome of the safeguarding review. In recent days, the EU has notified the WTO of adjustments to its safeguard measures on certain steel imports.
The participant adds that lower-priced imports from Asia were not particularly attractive to some, given the material available closer to home.
Meanwhile, the greatest source of demand continued to be for HRC which needed further processing, including colour coating and galvanizing. One source notes enquiries seeking large volumes of galvanized material, whilst stocks of these grades were minimal.
“There’s not a lot changed at all. Pretty steady, almost stagnant,” says another participant. “We are struggling to get hold of galvanized material; it’s a concern, and very slow coming through. There are things on the horizon where availability might start pushing price up, but it’s too early to see.”
They note that while Donald Trump’s tariffs could push prices up, the only real driver was demand, adding that many buyers were reluctant to purchase “anything”.
Participants previously told Kallanish when the US tariffs were first announced that there was little support for prices, and tariffs were of minimal concern, because volumes from the UK to the US only accounted for 7% of exports.
The tariffs went into effect on 12 March, with the UK not granted an exemption.
However, the main consequence of the tariffs remains the potential flood of diverted material into the market. Some participants and industry associations are urging the UK government to respond faster with safeguarding measures or retaliation like that of neighbouring Europe.
Carrie Bone UK
UK’s All Steels says price escalation now ‘unavoidable’
UK-based trader AllSteels says an escalation in prices is now looking unavoidable amid a slew of inflationary factors, including US President Donald Trump’s tariffs, potential government demand and an expected reduction of safeguard quotes, Kallanish learns.
Lawrence McDougall, managing director, notes in a market evaluation sent to customers that the impact of globalisation and geopolitical tensions on the steel industry is set to be more pronounced than ever in the year ahead.
“President Trump’s decision to impose substantial steel tariffs on nearly all nations has far-reaching consequences, which will only intensify as other countries introduce similar retaliatory measures. The inevitable outcome of this scenario is a resurgence of inflation and rising steel prices,” he says.
The statement notes the gap between UK steel production and consumption, highlighting the country’s reliance on imports. For long products; structural sections, merchant bars and hollow sections, 86.16% of these imports come from the EU and Turkey.
McDougall says there have already been £20-30/tonne ($25-38/t) price increases by most European longs producers but notes this is only the first wave of such hikes.
“In the US, protectionist measures have already enabled domestic producers to raise steel prices on certain products by $165/t during February 2025 and the US scrap producers are wasting no time in taking a slice of this increase as well as enjoying the uptick in local demand.”
It notes upward movement in Kallanish’s North American hot rolled coil price during February, as an indicator of the price trend.
The firm has observed the impact of Trump’s tariffs on ferrous scrap, especially for Turkey, the biggest buyer of US scrap. It notes Turkey can either pay a premium for US scrap now, or buy from alternative markets.
“The latter scenario is already tightening scrap availability in Europe; as this supply and demand balance switches, prices are naturally increasing.”
In the coming months, McDougall expects a cut to both UK and EU safeguard quotas, dramatically heightening the risk of 25% import duties on long products.
This is in addition to the introduction of CBAM, which he sees as a standalone event will create one of the biggest upshifts in UK steel prices.
Therefore, as of 3 March, the company has increased its stock items by £20-30/t.
It also notes that stocks are very low across the supply chain, meaning demand is likely to jump quite quickly as buyers make their moves to beat price increases.
He also believes government infrastructure spending is imminent and will improve demand.
“We are at that turning point where we all need to be prepared for price escalation that now looks unavoidable,” he adds.
Carrie Bone UK
UK proposes extending antidumping duties on Chinese organic coated steel
The UK Trade Remedies Authority published its initial findings late Feb. 25, proposing that antidumping and countervailing measures on organic coated steel, or OCS, imported from China be maintained for an additional five years, until May 4, 2029. This proposal aims to protect the UK industry from potential harm that could occur if these measures were removed.
OCS is used to maintain the durability of various structures, particularly in construction, as well as in metal furniture, heating and ventilation systems, and a range of domestic appliances.
In its statement, the TRA concluded that removing these measures would likely result in a recurrence of dumping and subsidization practices, which have historically undermined domestic production. Since their implementation in 2013, these measures have proven effective in keeping Chinese OCS imports below 1,000 mt annually.
Tata Steel UK is the sole producer of OCS in the UK, manufacturing it at the Shotton facility in North Wales. The company contributes approximately GBP 222 million ($280 million) annually through OCS sales and employs around 8,100 individuals across its various operations.
This transition review was initiated on April 15, 2024, examining data from the period April 1, 2023, to March 31, 2024, with the injury assessment covering from April 1, 2020, to March 31, 2024.
Currently, antidumping duties imposed on Chinese OCS imports range from 5.9% to 26.1%, while countervailing duties vary from 13.7% to 44.7%, depending on the specific exporter.
The TRA has opened a window for businesses potentially impacted by these findings to voice their opinions. Interested parties can submit comments to the TRA via the TRA’s public file until March 18, 2025, allowing for a collaborative approach to shaping the future of the UK OCS market.
The UK government and TRA view these measures as crucial in maintaining a level playing field for UK manufacturers and ensuring the sustainability of local production. Last week, the UK government accepted the recommendation to maintain an antidumping measure on imports of corrosion-resistant steel from China for an additional five years.
Platts, part of S&P Global Commodity Insights, assessed the weekly steel hot-rolled coil (HRC) UK at GBP530/mt DDP West Midlands Feb. 20, stable week over week.
UK industry groups flag government policy risk
Industry association UK Steel has joined other energy-intensive industry trade associations in signing an open letter to the government detailing the risks of certain policy impacts on their respective sectors, Kallanish learns.
The letter to Sarah Jones, Minister of State for the Department for Business and Trade, was spearheaded by Arjan Geveke, director of the Energy Intensive Users Group (EIUG). As well as UK Steel, other signatories includes those from the glass and ceramics sectors, chemicals and refineries, paper and mineral sectors, as well as the GMB Union.
It says while they support the government’s ambitions to boost economic growth and meet the Net Zero target, their ability to invest in decarbonisation technologies is held back by relatively high electricity costs, policy uncertainty and risk of carbon leakage. This has often made investment in the UK uncompetitive.
It notes the UK currently has higher industrial energy costs than in Europe, the US and Asia. This is something UK Steel has flagged repeatedly, calling on the government to increase the rate of compensation for network charges from 60% to 90% to bring UK network charges closer to those in key European countries.
The letter also notes that security of energy supply is critical but the rise of “intermittent technologies”, such as renewables, generating electricity and changes in geo-political circumstances, has increased risk.
Meanwhile, it also says the UK’s Carbon Border Adjustment Mechanism (CBAM) needs significant improvement to make it effective and without loopholes. Its 2027 implementation risks trade barriers and trade diversion with the EU when the bloc’s CBAM starts in 2026.
“The 12-month gap could see detrimental impacts, as higher-carbon products that would have been imported to the EU risk being diverted to the UK instead,” it says.
If the government will not bring CBAM forward to 2026, it asks it to prepare mitigation measures, particularly around trade remedies. It also wants to ensure carbon leakage policy addresses both import and export risks.
The NESO Clean Power 2030 report includes a central estimate for gas price at 101p/therm and an ETS price assumption of £142/tonne, as well as an additional £25/tonne tariff for fossil-generated power to disincentivise exports of unabated power.
“Energy intensive industries will not be able to bear these carbon costs as long as there is no effective UK CBAM without loopholes and there are no commercial decarbonisation technologies available,” the letter states.
It also expresses concern over NESO’s proposed approach to fast-tracking grid connection for Clean Power 2030 which prioritises connecting low carbon power over industrial decarbonisation projects. It calls for industrial decarbonisation to be given the same priority as electricity decarbonisation in terms of network connections.
Carrie Bone UK
Marcegaglia UK expands stainless steel tube production
Marcegaglia UK has announced an expansion of its manufacturing capabilities at its Oldbury site and now produces electro-welded stainless steel tubes.
The addition complements its existing production of carbon steel tubes, allowing it to provide a broad range of high-quality steel products for various applications, Kallanish learns from the company.
The Oldbury facility spans 69,000 square metres, with 46,184 square metres of covered space. It is equipped with four production lines for carbon steel tubes, with a total capacity of 70,000 tonnes, alongside three production lines for stainless steel tubes, enhancing the capacity by an additional 30,000t.
The production of stainless steel welded tubes at Marcegaglia UK focuses primarily on steel grade 304, adhering to the EN10296-2 standards for round tubes and ASTM A544 standards for square and rectangular tubes.
The company says the expansion marks a significant step in its UK’s growth, reflecting its dedication to meeting the diverse needs of its customers across the steel industry whilst its production lines are equipped to provide a variety of specific tube finishes.
Marcegaglia UK has recently become a member of the British Stainless Steel Association (BSSA).
Carrie Bone UK