BCSA urges UK Steel Strategy reassessment at 47th National Dinner

British Constructional Steelwork Association (BCSA) President, Chris Durand, said the government needs to step back from the precipice and reassess the UK Steel Strategy quotas and tariffs, which were introduced on 1st July, in order to properly reflect current UK steel production.

Speaking at the BCSA’s 47th National Dinner, held at the Armouries in Leeds, Dr Durand said: “The UK Steel Strategy contains much that is welcome, not least the recognition of steel production as an essential industry and the desire to ensure its viability in the future, but for it to succeed in this aim, it must also recognise the realities of the current UK steel market-place and the dangers of unintended consequences.

“Not all steel types can be produced locally and there may always be a need by downstream processors and fabricators to rely on imported product. The competitiveness of UK manufacturers will be further compromised by the imposition of tariffs on these materials and the omission of fabricated steel from the proposed quotas and tariffs is a loophole that will be exploited to the detriment of UK fabricators.”

Dr Durand added: “There is no point in punishing UK-based steel producers and fabricators who have no option other than to import certain raw materials. Minimal fabrication content allows raw materials to avoid tariffs, but the strategy as it stands, will increase material costs for UK-based fabricators, making the importation of fabricated structural steelwork increasingly cost effective. Imported fabricated steelwork will not be manufactured from UK-produced material.

“The whole UK steel industry could be likened to a delicate ecosystem that is somehow managing to survive within a very harsh environment. The Steel Strategy in its current form risks upsetting this balance with the real unintended possibility of a mass extinction of UK companies.”

Sherwin-Williams was the main sponsor of the BCSA National Dinner, alongside STRUMIS and Hempel. The BCSA thanked all three companies for their continued support of the event.

Following the National Dinner, the government eased its proposals by cutting tariff-free import quotas by 51% rather than the originally proposed 60%.

BCSA Chief Executive Officer Jonathan Clemens, said: “The changes show that ministers have listened to at least part of the case made by our industry.

“The additional quota headroom is a start, but it’s far from the full package for which we’ve been campaigning.

“For construction, there have been some positive moves, but the continued failure to include fabricated steel leaves the constructional steelwork sector dangling over a precipice.”