The UK steel market has entered one of its longest phases of decline following strong conditions in 2021 and 2022, according to UK steel supplier All Steels. Demand and prices remain at historically low levels, while the broader European economy also shows limited momentum. Recent US import protectionist measures have further undermined the competitiveness of European producers.
In 2024, EU steel exports to the US amounted to 3.8 million tonnes and are now subject to a 50 per cent import tax, while UK steel exports of 180,000 tonnes are subject to 25 percent duty. With even higher tariffs applied to other global suppliers, Europe has become a destination for surplus steel, forcing mills to cut prices to maintain market share, often at a loss.
CBAM and new import quotas to change market
The European Commission's new trade policy, combining import restrictions with the Carbon Border Management Mechanism (CBAM), represents a major structural shift. The CBAM, which comes into force on 1 January 2026, is expected to add £30-£130 per tonne to import costs depending on the origin and intensity of carbon dioxide emissions.
The revised safeguard framework will cap duty-free imports at 18.3 million tonnes per tonne year, which is about half the current quota, with out-of-quota tariffs rising from 25 percent to 50 percent.
UK expected to reflect EU approach
Although The UK government has yet to announce its final position and is widely expected to take parallel or coordinated measures with the EU to restrict imports from non-EU countries. If EU and UK producers can restore 18-20 million tonnes of domestic demand, the sector could restore profitability and free up capital for investment in decarbonisation.
All Steels warns that if excess imports are fully taxed at 50 percent, a sharp rise will follow prices.
Existing EU and UK safeguards expire on June 30, 2026, but the European Commission is seeking to ratify the new rules sooner, possibly on January 1 or April 1, 2026, pending legislative and WTO approval.
Discussions with European factories and distributors show trends towards early
