The UK Trade Remedies Authority (TRA) has taken on the vast majority of Tata Steel UK's suggestions in its recommendation to change import quotas for hot-rolled coil (HRC).
The company requested the HRC quota be split into 1A and 1B, the latter to be used for "downstream processing". The TRA last month proposed splitting the quota along these lines. Tata said quota 1A volumes should be unchanged from current volumes, a recommendation taken on by the TRA.
Tata also proposed a licensing regime be imposed on 1B, to ensure material imported into that quota is destined for "downstream processing".
The 1B quota should be increased, with the 'other countries' quota rising to 165,000 t/quarter, from 22,000-23,000 t/quarter at present, Tata requested. Quota 1B should be about 1.7mn t, the company suggested, while the TRA recommended closer to 1.9mn t.
In a submission to the TRA, Tata said it would import about 750,000 t/yr from the EU, 50,000 t/yr from Turkey and 750,000 t/yr from 'other countries'. Most EU material will come from Tata Steel Netherlands in IJmuiden, while the 'other countries' material would predominantly come from its parent company in India.
Tata suggested the country-specific split be removed for 1B, with the creation of a global quota, which the TRA also took on.
It said "downstream processing" involves the transformation of HRC into either cold-rolled coil, metallic coated sheet, organic coated sheet, tin mill products, gas pipes, hollow sections or large welded tubes and other welded pipes. "TSUK notes that there is a limited number of UK companies that have the capabilities to carry out downstream processing," it said in its filing.
Top Tubes and Marcegaglia could use the 1B quota, as well as Tata, according to market sources. Liberty's Tredegar plant could also theoretically use the quota, if it restarts production.
Tata said decoiling, cutting and slitting do not constitute "downstream processing" and that 1B should not be used for these purposes. Sources have noted Tata offering hot-rolled sheet produced from Indian HRC into the market. Under the plan suggested by Tata, and recommended by the TRA, such volumes would need to be imported under the 1A quota.
