Weak demand continues in the UK hot roll market

The UK HRC market declined in the week ended March 7 due to sluggish demand and uncertainties regarding the Trade Precautionary Measures Authority's review of the country's steel safeguard measures. Distributors in the UK were cautious in their purchases due to sluggish end-user demand and adequate stock levels, leading to reduced buying interest.

The market is witnessing weak end-user demand, with no signs of improvement expected in the near future. This trend is mainly attributed to the current market conditions characterized by weak demand and the lack of clarity on the Trade Precautionary Measures Authority's assessment of trade safety measures.

On February 9th, the Trade Precautionary Measures Authority announced its intention to review the suspension of safeguard import quotas. This review is in response to Tata Steel UK's strategic plan to decommission two blast furnaces by the end of 2024 and replace them with electric arc furnaces, thus changing the dynamics of the steel industry.