Following our recent update on steel market volatility, further changes are now set to impact pricing across the UK from July 2026. These developments are driven by a combination of government policy and ongoing supply-demand imbalance.

The UK’s Ongoing Steel Shortfall

The UK continues to use significantly more steel than it produces domestically. On average:

• UK production sits at around 5–6 million tonnes per year
• Demand typically reaches 9–11 million tonnes per year

This gap means the UK relies heavily on imported steel to meet demand—often accounting for around half of total supply.

New Import Tariffs and Quotas

From 1 July 2026, new government measures will tighten control over steel imports:

• Import quotas (the volume allowed in without penalties) will be reduced
• Any steel imported above these quotas will face a 50% tariff

These changes are designed to limit the volume of low-cost steel entering the UK market and to support domestic producers.

What This Means for Prices

Because the UK cannot meet its own steel demand:

• Businesses will still need to import steel
• However, those imports will now be more expensive and more restricted

At the same time:

• UK producers will face less competition from cheaper overseas steel
• This is likely to contribute to higher overall market prices

In short, the cost pressures are coming from both sides—restricted supply and increased import costs.

The Wider Context

These policy changes are part of a broader strategy to:

• Protect the UK steel industry from underpriced global competition
• Maintain domestic steel production capacity
• Support jobs and long-term supply resilience

While these are important long-term goals, the immediate effect is expected to be price increases across the supply chain.

What This Means for Our Customers

At S&A Fabrications, we are continuing to:

• Monitor market conditions closely
• Work with our supply chain to manage cost increases where possible
• Provide transparent updates so you can plan ahead with confidence

Summary

To recap:

• The UK does not produce enough steel to meet demand
• Imports are becoming more expensive due to new tariffs and tighter quotas
• This combination is expected to drive steel prices up from July 2026

We’ll continue to keep you informed as the situation develops and will share any further updates as they arise.