The Confederation of British Metalforming (CBM) has raised serious concerns over the UK’s proposed steel trade measures, warning that reduced quotas could disrupt supply chains and increase costs for downstream industries.
In a letter addressed to the Department for Business and Trade, the CBM stated that the planned revisions to steel tariff rate quotas (TRQs) risk undermining the competitiveness of UK manufacturing sectors, including automotive, construction and engineering.
Quota cuts could create supply gaps
The CBM highlighted that proposed reductions, particularly in Category 1A (HRC), would significantly limit import availability. According to the letter, TRQs could fall from around 988,000 mt to just 102,000 mt, representing a reduction of approximately 90 percent.
The association warned that domestic production would be unable to replace lost import volumes in the short to medium term, creating immediate supply gaps.
Rising costs expected across the market
The CBM stated that lower import volumes would lead to higher steel prices, increased reliance on more expensive domestic supply, and reduced market competitiveness.
It also noted that following quota announcements, UK steel prices increased by over £100/mt on some grades, raising concerns about market dominance.
Downstream industries at risk
The association warned that manufacturers may shift sourcing strategies, including:
- importing finished goods instead of steel,
- relocating production outside the UK,
- and reducing domestic processing activity.
This trend could weaken the UK’s downstream steel sector, which depends on access to competitively priced raw materials.
Structural dependence on imports remains
CBM emphasized that the UK steel market remains structurally dependent on imports.
For Category 4 (metallic coated sheets) products total UK demand is around 1.3-1.4 million mt annually, domestic supply accounts for approximately 30 percent, and EU imports supply about 40 percent, leaving a significant share reliant on rest-of-world imports.
The group warned that further reductions in these imports could result in material shortages, increased costs, and reduced supply quality.
CBM also criticized the structure of quota allocations, stating that traditional suppliers such as Turkey and Taiwan could be excluded, while other countries may receive disproportionately large allocations. This could distort supply patterns and limit access to specific steel grades required by manufacturers.
Call for policy revisions and safeguards
The association urged the government to:
- reconsider the scale of quota reductions,
- revise allocation methodologies,
- ensure quotas reflect actual market demand,
- introduce a “backstop mechanism” allowing imports without 50% tariffs if domestic supply is unavailable.
It also called for closer dialogue between government, steel producers and downstream users.