Tata Steel will not manufacture these products for sale in the country
Cold rolled coil (CRC) is to be exempted from UK steel safeguards as Tata Steel will not produce the material for foreign sale. This information was provided by traders to the Trade Remedies Authority (TRA), Argus Media reports.
During the decarbonization campaign, Tata Steel will produce CRC only for the needs of its galvanizing lines operating at plants in the south and north of Wales. Company sources also confirmed that annealed cold-rolled coil will not be produced for sale.
The closure of the continuous annealing line in March 2025 and the transition to batch annealing will mean that the company will not have the capacity to process cold-rolled steel in this way from that date.
As a result, UK service centers will be forced to turn to European or imported material, unable to purchase locally produced CRC from Tata Steel. The company is the only producer of cold-rolled coils in the UK, so traders believe there can be no protective measures in the absence of domestic production of these products.
At the same time, the UK market is still awaiting the government’s decision to suspend the import quota for hot rolled coils (HRC). The TRA recommended that this step be taken due to increased imports of this product by Tata Steel.
According to a spokesperson for the Department of Business and Trade, TRA’s “assessment of the suspension” is ongoing, although it made its recommendation several months ago.
The International Steel Trade Association has sent a letter to the new Secretary of State for Business Jonathan Reynolds on this issue.
Traders believe that Tata should not be able to import hot rolled coils that are not used in its processing facilities to make CRC and hot dip galvanized steel (HDG). Market participants argue that cutting hot-rolled coils into sheets is not sufficient processing, as this is what most importers – service centers – do. Tata reportedly wants to get its own HRC import quota.
In June 2024, the UK extended safeguard measures on 15 categories of steel for another two years, until June 2026. In addition, the suspension of safeguard measures against Ukraine has been maintained until that date.
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