Millions of tonnes of non-EU steel could flood UK market, industry group warns
Almost 23 million tonnes of non-EU steel could flood the UK market without government action, an industry group is warning.
UK Steel called for a carbon border adjustment mechanism (CBAM) to be introduced in this country at the same time as one in the EU.
The trade association said the Government must act swiftly to avoid “crushing” the UK steel industry when the EU brings in new import carbon costs in 2026.
UK Steel said almost 23 million tonnes of steel currently imported into the EU could be diverted from Europe and on to the UK market when the EU’s CBAM is put in place, if there is no UK equivalent.
The main aim of a CBAM policy is to create a market for low-emission steel and help the industry decarbonise.
Imported steel can undercut domestic production simply because most nations do not apply the high carbon costs to their steel industry, said UK Steel.
Gareth Stace, director general of UK Steel, said: “Over three times our annual steel consumption is at risk of being diverted from the EU to open markets like the UK, which could suffocate our domestic industry.
“By not acting now UK Government will burst the dam when high-emission, cheap steel floods the UK market, while ruining our export opportunities at the same time.
“We need a UK carbon border adjustment mechanism to level the playing field on carbon costs across local and international suppliers.
“By having a competitive domestic steel industry, the UK can lead the way to net zero steelmaking.
“Steel is vital to the UK’s economic resilience, jobs and hitting net zero targets for the wider economy, and integral to green tech, transport and future housing.”
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