News
03/11/26
USP Steels adds ex-Meridian decoiling lines
London, 3 November (Argus) — UK steel stockholder and processor USP Steels is
expanding its processing capacity to 500,000 t/yr after acquiring two decoiling
lines from Meridian Steel. Consolidation continues to reduce the number of major
operators in the UK hot-rolled coil (HRC) processing market, USP commercial
director Jack Locke told Argus . USP is developing an additional processing bay
at its new headquarters in Dudley to accommodate the equipment. The company
acquired the former C. Browns Steel site in August 2025 and relocated there in
August 2026 following a substantial refurbishment and rebranding programme. The
acquisition will increase USP's number of decoiling lines to seven from five and
raise its total number of processing lines to 11, including decoiling, slitting
and blanking equipment. The investment adds a third heavy-gauge processing line
and an additional medium-gauge line. Once the new equipment is commissioned, USP
will be able to process material ranging from approximately 0.4mm to 25mm in
thickness. USP specifically targeted Meridian's decoiling equipment rather than
its slitting lines, Locke said, as the assets complement the company's existing
heavy-gauge processing capabilities. Meridian Steel, which is owned by Duferco,
shut its UK operations in the summer. The investment comes during a period of
significant consolidation in the UK HRC processing sector. The number of major
UK service-centre operators has fallen to three from around 10 over the past
three years, Locke estimated. The shrinking number of processors is increasing
the importance of security of supply for UK steel buyers, Locke said. Market
participants may face fewer sourcing options, particularly as safeguard quotas
continue to limit imports from key origins such as India and Turkey. The
India-specific Category 1 quota for hot-rolled sheets and strips, including HRC,
totals 8,364 t/quarter and was around 94pc utilised as of 4 October , just four
days after the quarter began. The residual quota, under which Turkish material
falls, was fully exhausted in the first days of October too. Tight import
availability could increase reliance on European suppliers at a time when
inventories across the supply chain remain relatively low. European mills may
seek to capitalise on reduced import competition, while buyers that have delayed
purchases could return to the market to replenish stocks. European mills could
respond to tighter import availability and renewed purchasing activity by
raising HRC offers into the £800s/t ddp UK, following the decision of UK
producers to raise HRC prices to £850/t ddp Midlands for January 2027 delivery.
In addition, buyers face tighter commercial terms, with one major UK producer
having reduced its payment period to 30 days from around 60 days previously .
Purchasing decisions are also being influenced by the introduction of the
definitive phase of the EU's carbon border adjustment mechanism in 2027, which
is expected to affect trade flows, pricing and the competitiveness of imported
steel. By Andrey Telegin Send comments and request more information at
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