The UK Secretary of State for Business and Trade has finally approved the Trade Remedies Authority's recommendation to extend steel safeguard duties.
The TRA recommended the extension of the import safeguards until June 2026, and the minister has today approved them, just ahead of the 30 June deadline.
Participants across the marketplace have been eagerly anticipating the decision, and in some areas this long wait has contributed to a paralysis in trade, alongside weak real consumption.
Large decoilers and service centres in the hot-rolled coil market have been postponing procurement decisions in the event the safeguard lapsed — there was a perception among some that this could pressure prices, meaning buyers held off.
"Today's decision by the secretary of state to maintain UK steel safeguards is vital to the sector at a time of rising global steelmaking overcapacity and trade deflection from other protected markets," Gareth Stace, UK Steel director-general, said.
The government has not yet approved the TRA's other recommendation to suspend import quotas on HRC, given increased volumes that will be required by Tata Steel as it switches off its blast furnaces, imports slab and finished product.
If no decision is made by 1 July, this could mean importers facing duties — two companies surveyed by Argus have almost 50,000t of Indian HRC to clear into the July-September other countries' quota, which has historically been around 22,000t/quarter.
Tata has asked for its own quota, a suggestion opposed by many traders and importers who believe it would be unfair to give the company its own volume.
