UK Steel Import Market Reacts to New Trade Defence Measures

UK Steel Importers Hit by Sudden Quota Caps and Tariff Reforms

The UK steel import market is facing sharp disruption following the sudden implementation of tighter trade defence measures. Importers expressed strong frustration after the UK government unexpectedly altered quota allocations and tariff thresholds starting July 1, 2025. These changes, aimed at protecting domestic steelmakers, have already begun reshaping supply strategies.

The European Steel Review reports stable UK steel prices in July, partly due to fears over added import duties. The abrupt cap revisions differ from the Trade Remedies Authority’s earlier recommendations. Instead of a uniform 40% cap, the government applied stricter limits: 15% for coil and sheet, and 20% for plate and rebar. This directly impacts high-volume exporters like South Korea and Vietnam, whose tariff-free access now falls well short of 2024 shipment levels.

Meanwhile, the liberalization rate for tariff-rate quotas was slashed from 3% to a mere 0.1%. New rules also prevent unused quotas from carrying into the next quarter and restrict final-quarter residual quota access. These changes aim to block quota loopholes and redirect steel imports more predictably—though they risk increasing costs for UK manufacturers.

Impact of Steel Trade Defence Measures on Pricing and Supply

The tightened steel trade defence measures are expected to raise UK prices and limit low-cost material inflows. For galvanised coil, UK stockholders anticipate an upward shift in value as the 15% quota restricts major Asian suppliers. In 2024, Vietnam and South Korea collectively shipped over 300,000 tonnes of galvanised coil to the UK—far exceeding their new combined quota of 101,876 tonnes.

The 20% cap on quarto plates and rebar will have a more modest impact, although Algerian-origin rebar and South Korean plate could face immediate constraints. Notably, an ongoing TRA antidumping probe into South Korean plate may further reduce that country’s export competitiveness.

Importers now look to diversify sources to maintain a flow of affordable steel. The urgency is compounded by upcoming trade developments, including potential changes to the U.S. Section 232 tariffs and the EU’s CBAM taxes, both of which could redirect global steel flows toward the UK. Without a timely and balanced trade defence mechanism, downstream industries may bear the brunt of constrained supply and volatile pricing.

SuperMetalPrice Commentary:

The UK steel import market is entering a new phase defined by policy overhauls and external trade pressures. While the revised trade defence measures protect domestic producers, they introduce significant sourcing challenges for importers. As a result, UK buyers must now navigate rising tariffs, quota complexity, and shifting global steel routes. The pending U.S.-UK tariff talks and 2026 EU CBAM rollout could further tilt trade dynamics. Long-term, the UK must strike a careful balance between steelmaking support and downstream competitiveness. A robust, adaptive safeguard framework beyond 2026 is not just strategic—it’s essential.