The UK Trade Remedies Authority (TRA) has widened its review of the steel safeguard in light of concerns raised by steelmakers, it said today.
The TRA has broadened the scope of its developing economy status review, which it began on 28 February, after UK Steel said a number of factors warranted a broader review to right-size quotas on certain products.
In a submission to the TRA earlier this month, UK Steel said the reimposition of US steel tariffs, the fall in domestic demand and quota liberalisation, and tighter EU safeguards meant the review should be widened.
UK Steel said products with "larger residual quotas", hot-dip galvanised (HDG), plate and rebar, are exposed to diverted trade. Last year, more than half of ‘other countries' HDG imports came from Vietnam, 66pc of ‘other countries' plate from South Korea and 78pc of ‘other countries' rebar from Algeria. In its recent steel safeguard review, the EU imposed caps on ‘other countries' HDG, plate and rebar of 20-25pc. It is likely that a similar mechanism could be implemented in the UK to avoid crowding out of traditional flow, but the outright quota volumes are much smaller than in the EU. UK Steel asked for 15pc caps on each product.
UK Steel also said the quotas should be reduced in line with softer demand, or at least the rate of liberalisation reduced, in line with the 0.1pc rate in the EU. The reversal of redistributed volumes from Russia and Belarus should also be considered, it said, again in line with EU changes. Carryover of unused quotas from one quarter to the next should also be stopped.
The association also said China, India, Turkey, Brazil and Vietnam should not be considered developing countries for the purpose of the safeguards, which would mean they all come into the scope of the ‘other countries' quotas.
The TRA said interested parties can now register interest or provide updated submissions until 9 April.
Argus reported last month that UK steelmakers had requested greater import protection.
