The UK steel market is entering a major structural shift as existing safeguards expire in June 2026 and tougher protectionist policies are considered, according to the latest market assessment from UK steel supplier All Steels Trading Ltd. The report warns of significant price escalation caused by the already existing EU CBAM, pending amendments to UK safeguards and the planned introduction of UK CBAM from 1 January 2027.
EU and UK mills increased bar sales by £40/t, while hollow and structural sections increased by £50/t, according to the report. UK safeguard quotas for the first quarter were exhausted on opening day in many long product categories, with All Steels reporting a duty of £300,000.
Quotas could be halved, duties could double
Industry speculation suggests that from 1 July 2026 UK safeguard quotas could be reduced to 50 percent, while extra-quota duties could increase from 25 to 50 percent. If implemented, such measures would significantly change supply dynamics and pricing in the UK steel market.
Rising input costs - scrap, gas and transport
Cost pressure is increasing on raw materials and energy. Scrap prices have risen steadily, with a rise of $30/mt resulting in an increase in production costs of approximately £25/mt. European gas prices remain high at around €31.55/MWh, while freight costs have also increased.
