en.Wedoany.com Reported - The UK government will implement new safeguard measures on imported steel profiles from July 1, ultimately reducing the quota cut from the initially proposed 60% to 51% after weeks of lobbying by the construction and manufacturing sectors, and setting the tariff level at 50%.
Under the final plan, imported steel profiles will face quota and tariff restrictions, but prefabricated steel structure products remain outside the scope of control. The industry had repeatedly warned that overseas suppliers could make minor modifications to steel profiles, such as attaching plates or drilling holes, to enter the UK market duty-free as prefabricated products. Manufacturers fear this loophole will accelerate the outsourcing of work, endangering an industry employing approximately 60,000 people. The industry estimates that up to 30,000 jobs could disappear over the next five to seven years if the measures remain unchanged.
Jonathan Clemens, Chief Executive of the British Constructional Steelwork Association, said the changes announced by the government today show that ministers have at least listened to some of the industry's arguments. He said the additional quota space resulting from the reduction from 60% to 51% is a start, but far from the package the industry has been advocating for. In particular, there have been some positive changes in the profile category (especially profiles imported from the EU), tubes, and hot-rolled plates for the construction sector. However, he warned that the failure to include prefabricated steel structures leaves the construction steel industry teetering on the edge of a cliff—UK manufacturers are being asked to compete in a market with rising input costs, while overseas competitors can still ship prefabricated steel structure products into the UK duty-free.
These measures, introduced by the government to support steel producers such as British Steel, are expected to further push up construction costs. Structural steel prices have already jumped from around £700 per tonne at the start of this year to around £1,000 per tonne currently. Industry sources predict that once the new regime takes effect, UK steel safeguard measures will lead to a further price increase of 10% to 15%.
Before the decision was made, the parliamentary Business and Trade Committee had warned that excluding prefabricated steel structures would create a "perverse incentive to manufacture overseas," encouraging imports while undermining domestic manufacturing. Clemens added that both the United States and Canada have recognized the danger of leaving finished and derivative steel products exposed, and the UK government needs to catch up immediately to protect British companies, British investment, and British jobs.
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