UK government body the Trade Remedies Authority (TRA) is reviewing the developing country exceptions in its safeguard, it said today.
The review will likely mean Vietnamese hot-rolled coil comes into the scope of the safeguard. Vietnam had a 10pc share of the UK's third-country steel imports from outside of the EU last year, at just over 42,000t. Any developing country with more than a 3pc share of the UK's non-EU imports will come into the safeguard's scope. Egypt will likely come into the safeguard as well, as it held a more than 6pc share of the UK's third-country imports last year.
Market participants have until 14 March to comment on the proposed changes, with the TRA planning to make its statement of intended final recommendations on 28 March. It will make its final recommendation on 30 June. This timeline suggests any changes will come into force from 1 July.
UK steelmakers are lobbying for tighter import restrictions in light of fresh 25pc import tariffs in the US and the EU's steel safeguard review. The EU review will "meaningfully" reduce the bloc's imports, several sell-side sources suggest.
The idea of blanket tariffs in the UK have been muted by some market participants, but many question whether the UK would take such an approach. It is unlikely that the review of the UK's developing country exceptions will be the only measure the country takes, with other potential restrictions likely in the pipeline.
