Following the UK government’s latest review, the effective market size was estimated at around 30,000 tonnes, while duty-free import quotas were increased to 20,000 tonnes per year. This means that for every tonne of product manufactured in the UK, approximately two tonnes can be imported duty-free.
Bates said that even if the entire market were supplied through imports, the average tariff impact across the market would be around 17%.
Emphasis on Domestic Supply for Standard Products
According to Bates, standard stainless steel long products, which account for the majority of demand in the UK, can largely be produced domestically. However, a significant part of the UK stainless steel distribution sector is owned by European bar producers that have traditionally sourced their products from their facilities across Europe.
Bates noted that directing demand for standard and interchangeable products towards domestic sources could help preserve quota capacity for imports of steel grades that cannot be produced in the UK or that have specialized characteristics.
Marcegaglia Stainless Sheffield Expands Its Product Range
Marcegaglia Stainless Sheffield is also expanding its product range to serve a broader customer base in the UK.
The company believes that increasing the use of domestically produced standard products could allow quota capacity for imports of specialty stainless steel grades to be used more efficiently.
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