UK Steel supports amendments to trade measure

UK Steel fully supports targeted amendments to the provisional steel import quota measure and does not recognise media reports of a “U-turn.” 

The steel quota numbers published on 14 March by the UK Government were provisional, and while officials noted that there was a high bar to change, we have fully accepted that there will be alterations before the measure is introduced on 1 July. 

UK Steel has made comprehensive proposals to the Department for Business and Trade to remove certain commodity codes, make amendments to quota sizes and utilise authorised use schemes that will allow certain sectors specific access to the steel they require. We understand other sectors have done likewise to inform the Government’s final policy and we continue to have extensive discussions with impacted manufacturers. 

Negotiations between the UK Government and the European Commission regarding access to each other’s quotas will also significantly impact the final numbers. We fully support the Government’s extensive efforts to achieve the best possible deal for UK industry. 

The fact remains that this measure is fundamental to the survival of the steel industry in an international marketplace distorted by enormous subsidisation. The OECD calculates that Chinese steelmakers receive fifteen times the average OECD member subsidy, with everything from the cost of capital to energy prices supported by government. 

While China is not a huge direct supplier to the UK, their 120 million tonnes of annual exports distort international markets and force cheap steel to wash up on our shores and undermine our domestic capability. Until this policy is ended, countries around the world will add to the hundreds of trade measures already taken against Chinese steel. 

UK Steel Director General Gareth Stace said: 

“UK Steel has undertaken significant engagement with manufacturers to identify areas where amendments are required to ensure the measure provides the protection steelmakers need whilst causing the minimum amount of disruption to the broader manufacturing sector. 

“The announcement of this measure has already led to a number of UK steelmakers ramping up capacity, creating jobs, and reshoring supply chains in this critical industry. We expect more announcements of mothballed capacity returning to production in the near future.  

“We are also clear that the UK needs to follow the route of our allies the US and Canada and extend these measures to steel intensive manufacturing industries. We are one supply chain and UK Steel stands ready to help our partners in this process.”

ENDS

Contact Information

Jon Harrison, UK Steel, Regulatory Affairs Manager, UK Steel

0774 382 9613, jharrison@makeuk.org

Notes to editors

• UK provisional steel import quota measure: UK's steel trade measure from 1 July 2026 - GOV.UK
• European Commission proposed to cut its steel import quotas by 47%: Commission proposes plan to protect EU steel industry from unfair impacts of global overcapacity (https://ec.europa.eu/commission/presscorner/detail/en/ip_25_2293)
• OECD projected global overcapacity to exceed 680 million tonnes in 2025, representing 27% of total capacity. OECD forecasts overcapacity to increase to 721 million tonnes by 2027, in part driven by China. (Source: 98th Session of the Steel Committee: Statement by the Vice-Chairs - https://www.oecd.org/en/about/news/speech-statements/2025/11/98th-session-of-the-steel-committee-statement-by-the-vice-chairs.html)
• China exported a record 120 million tonnes in 2025. For context, besides China, only one other country (India – 164.9 million tonnes) even produces that volume. China produced over half (960.8 million) of the 1.803 billion global total in 2025, according to the World Steel Association (Source: https://worldsteel.org/media/press-releases/2026/december-2025-crude-steel-production-2025-global-crude-steel-production/

About UK Steel: 

UK Steel is the trade association for the UK steel industry. It represents all the country’s steelmakers and most downstream steel processors.

The UK steel sector:

• Produced 2.6Mt of crude steel in 2025 and supplied 30% of the UK's annual demand of 10.3Mt
• Employs 34,000 people directly in the UK and supports a further 42,000 in supply chains
• The median steel sector salary is £40,278, 22% higher than the UK national median and 34% higher than the regional median in Wales, and Yorkshire & Humberside where its jobs are concentrated
• Directly contributes £1.7 billion to UK GVA and supports a further £2.3 billion
• Directly contributes £2.9 billion to the UK’s balance of trade
• 96% of steel used in construction and infrastructure in the UK is recovered and recycled to be used again and again