A report by UK Steel reveals a global steel production capacity surplus of 543 million tonnes in 2023 – 70 times the size of the UK market. Much of this surplus comes from Southeast Asia and the Middle East, often from state-subsidized producers using older, high-emission technologies.
The report also highlights falling domestic demand in China, leading to increased steel flooding the global market. While the UK implemented some trade protection measures in response to the Section 232 tariffs imposed by the Trump administration in 2018, these are set to expire in 2026 and are unlikely to be extended due to World Trade Organization (WTO) rules. UK Steel argues that with global trade protectionism rising, the UK needs a more robust trade policy. The association warned that without action, the UK risks becoming the only open market, seriously jeopardizing the sector.
Steel imports into the UK are projected to increase from 55% in 2022 to 60% in 2023 and 68% in 2024. UK Steel CEO Gareth Stace noted that many countries are strengthening their trade defense mechanisms and that the UK needs a stronger trade policy to compete. Although the government extended protection measures on some steel products until 2026 in June 2024, UK Steel considers these insufficient. The association stresses the need for more comprehensive protection to prevent future market and investment losses.
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