A lack of structural change and investment has caused Tata Steel UK's financial problems, not imports, the International Steel Trade Association (ISTA) said in a letter to government ministers on 10 February.
ISTA was countering assertions by Tata that it may have to mothball some operations if imports are not reduced.
"We welcome the continued open and constructive engagement of ministers and the Department for Business and Trade [DBT] with our associations; in this regard, we must express our severe concern that these threats being made by Tata do not give them the benefit of undue influence over government's decisions in the way that it seems that they did when they pressed secretary of state [Jonathan] Reynolds last summer," ISTA said.
Tata argued last year against a Trade Remedies Authority (TRA) recommendation to impose a 40pc cap on the other countries' quota for hot-dip galvanised coil, leading Reynolds to impose a 15pc cap that stranded months of supply and forced buyers to duplicate orders and book from Turkey.
The government intends to make a statement on the new quota regime around 1 April, with implementation from 1 July. Some sources suggest Tata has proposed two quotas per product, one for EU-origin material and one for the rest of the world.
Non-EU imports "have always played a vital part of the UK steel market, maintaining a share close to 35pc", ISTA said.
Third-country material constituted 25pc of import supply in the first 11 months of 2025, with EU material constituting almost three-quarters, up from 62pc in 2024. The Netherlands was the biggest source, with shipments of 355,168t, almost 27pc of the 1.32mn t total. France was the second-largest supplier at almost 25pc, while Germany and Belgium each supplied around 7pc. Dutch volumes were likely driven by shipments from Tata Ijmuiden to its UK sister company and were the most price-competitive EU volumes, with an average landed cost of £525/t ($715/t).
Japan was the lowest-price source in January-November at £458/t, followed by Egypt at £466/t and Taiwan at £473/t. Japanese material has typically been bought into the larger 1B quota for substantial downstream transformation, while a Geneva-based trader has primarily supplied Egyptian material to one service centre in the Midlands.
UK strip demand dropped from 5.3mn t in 2018 to 3.6mn t in 2025, while quotas have increased each year, giving imports more market share, a source close to Tata said. Hot-rolled coil (HRC) imports from the rest of the world excluding Europe have risen from 202,490t in 2018 to 308,346t over the first 11 months of last year. South Korea and Japan, which each sell into the 1A and 1B quotas for HRC in the UK, have increased volumes significantly — South Korea from 7,335t to 58,688t and Japan from 21t to 40,718t.
"We welcome the support of downstream steel users and agree that any replacement for the current safeguards must work for the whole UK steel supply chain," a Tata Steel UK spokesperson told Argus. "For this reason, the UK industry is pursuing a balanced quota approach rather than a blanket tariff. The global market continues to be defined by significant overcapacity, with excess steel being pushed into export markets. The US and EU have strengthened their trade defences in response. The UK market, on the other hand, continues to be disrupted by low-priced imports and short-term opportunistic behaviour."
Since buying Corus in 2007, Tata has invested over £6bn in the UK business. It took both its blast furnaces off line last year and transitioned to re-rolling while its 3mn t/yr electric arc furnace is installed.
