Introduced earlier in the year, the new UK and international steel tariffs came into effect on the 1st of July, and they have already been causing a stir in the scrap metal sector.
In a bid to support the growing steel industry, the government has taken a big step to boost production by attempting to limit the amount of steel entering the UK from overseas. The new Steel Strategy regulations introduce higher tariffs and lower quotas for steel imported from July 2026 onwards, in the hope that more manufacturers and builders will move to using locally sourced and recycled steel.
In a statement shared from the government website, the new tariffs are explained as:
‘’The government is limiting tariff-free steel imports, reducing overall quota volumes by 51% compared with the steel safeguard measure. Any imports above these levels will face a 50% tariff. The measure applies to imports of steel products that can be made in the UK.’’
Essentially, the new tariffs will increase the price of importing steel, putting financial pressure on manufacturers in the industry, in the hopes of persuading them to switch to using cheaper, more sustainable steel options.
The government are also supporting net zero by encouraging the British steelmaking industry to transition from using coal-powered blast furnaces to a more sustainable option like electric arc furnaces (EAF) that use recycled scrap steel. Unlike traditional blast furnaces, which burn purified coal to heat iron ore to get molten iron, EAFs use high-current electricity to melt down recycled scrap steel, cutting carbon dioxide emissions by up to 90%.
According to the British Metals Recycling Association, the UK generates more than 11 million tonnes of ferrous and non-ferrous metal for recycling annually. These new regulations show that the government is beginning to view scrap metal as a vital resource for green steel production, rather than just a basic export. Using recycled metals also helps to minimise the financial and environmental impact of mining ores for metal production. The metal recycling sector continues to invest in new technology that aims to improve metal quality, reducing the need for environmentally damaging ore extraction.
However, not everyone in the industry is happy with the new changes. Those who currently rely on imported steel for their business are concerned that higher costs and limited availability will hinder their ability to get the required materials for their projects. For the proposed plans to work, the country must produce enough new and recycled steel so manufacturers, builders, and metal workers can continue to trade as normal.
Encouraging tradespeople to connect with local metal recycling centres and eco-friendly steel producers helps to reduce business costs and encourages investment from the government and organisations, supporting both the manufacturing and metal recycling industries. The future of manufacturing in the UK relies on the government and the sustainable metal recycling sector working together to develop environmentally friendly ways to source steel, supporting the growth of the sector and keeping businesses running smoothly.
If you’d like to know what metals we can recycle or have any scrap steel you think may be worth selling, you can bring it to Singletons for us to value. To find out more about our metal recycling services, or to get an accurate quote for your scrap, contact us today!
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