The UK increased its second-quarter steel exports to the EU by 76,000 tonnes to nearly 500,000t, UK steel distributors’ association NASS informs Kallanish. Due to quota carry-over from the previous quarter, the UK had a much larger overall EU quota size of 966,000t, of which 51% was consumed, compared to 708,000t in Q1, of which 59% was consumed.
The UK had additional quota available to export to the EU tariff-free and although activity has improved compared to the previous quarter, it is still 20% below historical export levels. Only one product category reached critical status, Other Welded Tubes (26) reaching 91% of its allocated 11,874t. Wire rod (16) accounted for the largest volume, with 121,713t exported, using up 72% of its quota.
Similarly on the UK import front, 51% of second-quarter quotas were used-up across product categories and including carry over amount. The only product category where quota was exhausted from all origins was Rail (19), while organic-coated steel (5) also reached critical with 93% of overall quota consumed.
As of 1 July the expanded quotas of the new EU and UK safeguards regimes have taken effect.
UK trade secretary Liz Truss said on Wednesday the government is making new regulations by extending safeguards on another five of the 19 steel products for one year by public notice (seeKallaish passim). These are non-alloy and other alloy quarto plate, non-alloy and other alloy merchant bar and light sections, non-alloy and other alloy wire rod, and finally angles, shapes and sections of iron or non-alloy steel.
Adam Smith Germany