UK Steel Importers Oppose Quota Caps on Other Countries
[tintuc]
UK steel importers say that putting a cap on quotas from other countries could stop trade because the allowed amounts are too small.
In a recent submission to the Trade Remedies Authority (TRA), UK Steel suggested a 15% cap on quotas from other countries for hot-dip galvanized steel, plates, and rebar.
But in its own submission to the TRA, trading company Salzgitter Mannesmann argued that any percentage-based cap on quotas “would likely block imports rather than just reduce them.” They said shipments from many third countries, especially the Far East, need a minimum amount to be shipped economically to the UK. Other trading companies and service centers agreed.
Salzgitter Mannesmann also suggested adding new country-specific quotas for each importer based on their imports over the past two or three years. Tata Steel, the only UK producer of hot-rolled galvanized coils, would likely oppose this because imports from some countries, especially Vietnam, have grown a lot recently.
Salzgitter Mannesmann also pointed out that Tata Steel cannot make hot-rolled coils wider than 1.85 meters, so the UK fully relies on imports for those. Traders have long said there should be no import limits on materials like 2-meter-wide steel, since it doesn’t harm producers who can’t make it.
Sebden Steel, a service center, said the current rules make it “impossible” for the UK to be flooded with cheap foreign imports. They claimed people are “misled by mainstream media and UK Steel.” They added that UK producers are already safe, and extra rules would only hurt independent steel service centers, warehouses, and manufacturers by tightening supply chains and raising costs.
Importers, unsurprisingly, question why Tata Steel, which re-rolls steel until its electric arc furnaces are built, gets better import terms than others. Tata has a much bigger quota—about 2.3 million tons—while the main issue for importers is that Tata faces fewer supply limits, with only a 40% cap on any country within its quota. Independent service centers, which compete with Tata Distribution, can only import much smaller amounts from different places due to fragmented quotas. For example, the “other countries” quota for 1A is under 100,000 tons per year. EU mills have the largest quota to sell HRC 1A into the UK, but their higher costs make it hard to compete with Asian producers. Tata’s imports come from around the world, including some from its sister plant in IJmuiden, Netherlands.
UK steel importers say that putting a cap on quotas from other countries could stop trade because the allowed amounts are too small.
In a recent submission to the Trade Remedies Authority (TRA), UK Steel suggested a 15% cap on quotas from other countries for hot-dip galvanized steel, plates, and rebar.
But in its own submission to the TRA, trading company Salzgitter Mannesmann argued that any percentage-based cap on quotas “would likely block imports rather than just reduce them.” They said shipments from many third countries, especially the Far East, need a minimum amount to be shipped economically to the UK. Other trading companies and service centers agreed.
Salzgitter Mannesmann also suggested adding new country-specific quotas for each importer based on their imports over the past two or three years. Tata Steel, the only UK producer of hot-rolled galvanized coils, would likely oppose this because imports from some countries, especially Vietnam, have grown a lot recently.
Salzgitter Mannesmann also pointed out that Tata Steel cannot make hot-rolled coils wider than 1.85 meters, so the UK fully relies on imports for those. Traders have long said there should be no import limits on materials like 2-meter-wide steel, since it doesn’t harm producers who can’t make it.
Sebden Steel, a service center, said the current rules make it “impossible” for the UK to be flooded with cheap foreign imports. They claimed people are “misled by mainstream media and UK Steel.” They added that UK producers are already safe, and extra rules would only hurt independent steel service centers, warehouses, and manufacturers by tightening supply chains and raising costs.
Importers, unsurprisingly, question why Tata Steel, which re-rolls steel until its electric arc furnaces are built, gets better import terms than others. Tata has a much bigger quota—about 2.3 million tons—while the main issue for importers is that Tata faces fewer supply limits, with only a 40% cap on any country within its quota. Independent service centers, which compete with Tata Distribution, can only import much smaller amounts from different places due to fragmented quotas. For example, the “other countries” quota for 1A is under 100,000 tons per year. EU mills have the largest quota to sell HRC 1A into the UK, but their higher costs make it hard to compete with Asian producers. Tata’s imports come from around the world, including some from its sister plant in IJmuiden, Netherlands.
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