Reshaping UK steel: MEPS’s UK Metals Expo debates

Experts from across the UK’s carbon steel and stainless steel supply chains have shared their views on a “tough period” for the sector, ahead of MEPS discussion panels at the UK Metals Expo 2025.

Eight senior figures from steel mills, international traders and industry associations will debate key issues affecting the UK steel market in the discussions, hosted by MEPS’s head of price analysis and forecasts, Kaye Ayub, on September 10 and 11. 

Ahead of their appearance at the UK Metals Expo’s Supply Chain, Trade & Policy Theatre, MEPS spoke to the lineup of panellists to gather their initial views on the market. 

Those taking part in the Carbon Steel Market: Navigating Trends and Price Dynamics debate (12pm to 12.50pm, September 10) expect the UK government’s June 30 announcement on the tightening of UK import quotas – just hours before their implementation – to be a focus of the debate. 

Adverse effects of increased trade defence 

Godfrey Watt, president of the International Steel Trade Association (ISTA), criticised what he saw as an “increasing anti-import attitude in government”, saying that the recent tightening of the UK’s trade defence measures amounted to the lack of a “balanced approach” to protecting jobs throughout the steel supply chain.  

He said: “The latest round of increased restrictions on imports will adversely impact far more jobs than those purely involved in steel production, which they are designed to protect.” 

All Steels Trading commercial director, Tom McDougall, suggested that restricting end-users’ access to imported steel could undermine the competitiveness of UK manufacturing. McDougall, who described the last 12 months as “continually challenging”, said: “The current trend that we see is an idea of protectionism, but this looks only at producer level. As a country, we really need to look after our manufacturers. Without them, what is the purpose of the producers?” 

However, Gareth Stace, managing director of UK Steel, the trade association representing UK steelmakers, highlighted that weak economic activity and the “vast amount of steel flooding out of China” had driven steel prices to unsustainably low levels. 

In August, the UK hot rolled coil price recorded in MEPS’s European Steel Review was just GBP20 per tonne above October and November last year, when values dipped to their lowest level since Covid-affected September 2020.  

Stace said that low prices are compromising the UK steel industry, with domestic steelmakers’ accounting for around 30% of domestic consumption. Last month, the UK government assumed control of Liberty Steel UK’s Speciality Steels division after it went into liquidation. The step came less than four months after the government stepped in to prevent the closure of British Steel’s operations in Scunthorpe, which remains under the ownership of China’s Jingye Group. 

Stace said: “The primary threat to the UK steel industry is heavily subsidised imports that are taking a greater share of the UK market at a time when UK producers are hamstrung by the highest industrial energy prices in the world.” 

Tata Steel UK’s head of strategic marketing, Nathan Lawrence, will also be part of next week’s carbon steel debate at the UK Metals Expo. 

Stainless steel panellists’ US tariff concerns 

Panellists from MEPS’s Stainless Steel Market: Exploring Trends and Price Dynamics debate (12.30pm to 1.20pm, September 11) are more focussed on the influence of UK-US trade relations. The UK is the only country to secure a reduction of US Section 232 import tariffs, from 50% to 25%. However, uncertainty remains about President Trump’s international trade policies, as reported in MEPS’s Stainless Steel Review. 

Langley Alloys has operations in both the UK and Texas. Director, Rodney Rice, said: “Specifically for our USA site, and customers served in Canada and Mexico from our USA facility, the frequently shifting tariff scenario has proved difficult to navigate. We’ve seen tariff regimes change with metal on the water, resulting in tens of thousands of dollars extra in tariffs being levied when containers are landed.” 

Rice added: “Some customers are experiencing stock shortages while, for others, demand has fallen off. Elsewhere, we are seeing some suppliers offering very low prices to the market, presumably to maintain volume in a market with lower demand, high stocks and few backlogs.”  

Liam Bates, president – long products, Marcegaglia UK, has also seen operations disrupted by US trade policy. He said that the last 12 months of poor demand had been exacerbated by US trade policy uncertainty and continued import penetration from Asia. 

“Demand is poor, but the uncertainty of various trade policies is weighing heavily on the decision-making process,” Bates said. “We have downstream operations in the USA, fed by Sheffield, but it is very difficult to tell how to manage that supply chain.  

“Also, the recent administration [for Liberty Steel’s Speciality Steels UK operation] shows both the trading difficulties [in the UK market], and also how challenging it is to form local partnerships to complement supply chains.” 

Tony Lockley, managing director at stainless steel importer and distributer Inoxko, sees opportunity in the UK, however. While orders have been erratic, he said that large orders were increasingly being satisfied by a mix of EU and third-country material.  

He said: “Since Brexit, the UK is free of import duties and quotas on almost all stainless steel products. This is because the UK has no stainless steel manufacturer of stainless flat products and, due to its relatively small market size, that’s unlikely to change. This gives UK manufacturing companies a significant advantage over their European competitors in terms of purchase cost.” 

Also part of MEPS stainless steel panel debate will be Nikolas Miklenčič, the general manager of Lumturi, a company specialising in the distribution of stainless steel sheets and coils across Europe. 

UK Steel Strategy provides hope of recovery 

Like many other panellists, Bates is hopeful that the UK government, which is due to announce its new Steel Strategy later this year, will unveil plans to revive the domestic market. 

Commenting on his hopes for Marcegaglia UK, he said: “We are investing in a world-class melting operation for stainless steel long products. Furthermore, we have committed to downstream investments in Sweden. Once a coherent EU and UK policy, that provides level playing fields, is implemented – and I have confidence in politicians to understand this, even if the machinery is slow – I am excited to put these assets to good use.” 

Rice said that he was keen to learn more about the rollout of the UK’s CBAM at next week’s Expo. He is also excited about the opportunity for experts from various segments of the UK steel industry to come together for MEPS panel debate. “A shared perspective of market conditions, from mills and distributors, is always helpful and informative,” he said.