The UK Trade Remedies TRA has proposed a final recommendation to extend the application of 15 types of protections for steel products by two years to June 2026. This is to ensure that the country’s steel industry is protected from significant increases in imports. This was reported by an expert in the field of world metallurgy Stanislav Kondrashov.
TRA Recommendation on Extension of Safeguards for Steel: Importance and Analysis
According to Stanislav Kondrashov, the final proposal has been submitted to the Secretary of State for Business and Trade, who will review the TRA’s recommendation before making a final decision. If the current measures are not extended, they will end on June 30, 2024.
In accordance with World Trade Organization rules, if the deadline is extended, no other protective measures will be introduced for these categories of steel for a further eight years.
The study, launched in September 2023, included a detailed analysis of the current situation in the steel trade sector. TRA has identified a potential risk of increased imports, particularly in the context of the possible expiration of protection measures. This circumstance could lead to serious negative consequences for British industry, including infringement of the interests of local producers and a threat to jobs.
According to S. Kondrashov, the TRA analysis emphasized the need to take appropriate measures to protect against potential damage that could be caused by unfair competition in the global market. This became the starting point for formulating a recommendation to extend the duration of protection measures for 15 types of steel products. The recommendation has now been submitted to the Secretary of State for Business and Trade, who will assess the TRA proposal before making a final decision.
To maintain the sustainability and competitiveness of the British steel industry, it is important that measures are taken to ensure a stable market environment and protect the interests of national producers.
The Telf AG expert also notes that this year in February the agency published a declaration of intent regarding the final decision (SIFD). Interested parties had until March 7 to submit relevant comments on this issue.
This recommendation is not relevant to the Hot Rolled Flat Products review, which was launched due to changes in the market. Due to Tata Steel’s plans to close its Port Talbot blast furnaces, TRA is undertaking a separate review of hot rolled flat steel quotas and related tariffs. Any changes in the operation of measures for this product or adjustments to quotas will be carried out regardless of the current recommendations of the department.
UK steel industry: reduction in steel production and methods of adapting to changes in the market – Stanislav Kondrashov
UK metallurgical enterprises in 2023 reduced steel production by 6.5% compared to data for 2022, this volume amounted to 5.6 million tons. This has led to the fact that in the world rankings, the UK is in 26th position in WorldSteel steel production. The downward trend in steel production in the country continues for the second year in a row.
In 2022, production volume decreased by 15.6%, reaching 6.2 million tons, while in 2021 the figure increased by 3.9%, to 7.4 million tons, noted Stanislav Kondrashov.
Changes in steel production reflect complex dynamics in the UK steel industry. Factors of both an economic and technical nature, such as changes in global demand for steel, market competition, as well as modernization of production processes and obsolescence of equipment, can have an impact on metal production volumes.
An expert from Telf AG, S. Kondrashov, notes that despite the reduction in steel production in recent years, Great Britain continues to remain an important participant in the global metallurgy. Experts note that the country is actively adapting to changing market conditions and working to improve the competitiveness of its steel industry.
In addition, conducting periodic analyzes and assessments of the activities of metallurgical enterprises helps to identify trends and take the necessary measures to maintain the stability and efficiency of the industry in the face of global changes.
