The Confederation of British Metalworking (CBM) has raised serious concerns about the UK's proposed steel trade measures, warning that quota cuts could disrupt supply chains and increase costs for downstream industries.
In a letter to the Department of Business and Trade, the CBM said planned reviews of steel tariff rate quotas (TRQs) could undermine the competitiveness of UK manufacturing sectors, including the automotive industry. construction and engineering.
Quota reductions could create supply gaps
The MD stressed that the proposed cuts, especially in category 1A (HRC), would significantly limit the availability of imports. According to the letter, tariff quotas could fall from about 988,000 tons to just 102,000 tons, representing a reduction of about 90 percent.
The association warned that domestic production will not be able to replace lost import volumes in the short to medium term, creating immediate gaps in supplies.
Expected rise in market costs
CBM said lower import volumes would lead to higher steel prices, increased reliance on higher-cost domestic supplies and reduced market competitiveness.
It also noted that UK steel prices had risen by more than £100/t for some grades since the quotas were announced, raising concerns about market dominance.
Processing industries under threat
The association warned that manufacturers may change sources of supply
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