The United Kingdom’s regulator, Trade Remedies Authority (TRA) has proposed revising the tariff rate quota (TRQ) for category 1 steel, non-alloy and alloy hot rolled sheets and strips, due to recent changes affecting domestic production. Tata Steel UK’s transition from a blast furnace to an electric arc furnace at Port Talbot has reduced domestic output, leading to increased imports that have exhausted the quota and driven up costs.
In response, the TRA has suggested splitting category 1 steel into two new categories: 1A and 1B. The quota for category 1A, for commercial use, will remain the same, while category 1B, designated for downstream processing, will see an 89pct increase. Combined, the total category 1 quota will be about 2.9 mln tons annually. The TRA also proposes allocating category 1B on a global basis with a cap of 37-42pct to prevent any single country from dominating the quota. TRA Chief Executive Oliver Griffiths stated that the changes aim to address the impact of reduced hot rolled flat steel production at Port Talbot, which has led to higher import levels and increased costs. Under the proposal, category 1A will have an annual import limit of just over 1 mln tons, while category 1B will be around 1.9 mln tons. Exceeding these limits will incur a 25pct tariff.
