The company is concerned about the rise in imports from India and Vietnam

The British steelmaker Tata Steel UK has warned that the continued operation of its plants in the UK could be at risk. This is due to an increase in duty-free imports from certain Asian suppliers, which threatens to flood the local market with cheaper imported products. This was reported by SteelOrbis.

Under the updated system of safeguard measures, imports exceeding the established quotas are subject to a 50 per cent duty. However, the annual quota for Vietnam for the supply of galvanised steel has more than tripled — from 51,000 to 174,000 tonnes. At the same time, the quota for India has been increased from 98,000 to 125,000 tonnes, following broader trade negotiations between London and New Delhi.

Tata Steel notes that the combined quota for India and Vietnam, which stands at nearly 300,000 tonnes, is equivalent to around half of the annual production volume of galvanised steel (600,000 tonnes) at its Llanwern plant in South Wales. This poses a significant risk that locally produced goods will be displaced by cheaper imported alternatives.

The company emphasises that these changes are taking place against a backdrop of tightening restrictions on steel imports by the European Union and other key markets. This could lead to surplus Asian raw materials being redirected specifically to the UK. At the same time, British steelmakers are forced to comply with significantly stricter environmental requirements than most of their overseas competitors. According to Tata Steel, the lack of balance between fair imports and domestic production threatens to turn the country into a dumping ground and lead to the loss of the industry’s strategic capacity.

The company’s warnings come against the backdrop of a large-scale restructuring of its UK assets following the closure of the last blast furnaces at Port Talbot, where investments are now being made in more environmentally friendly steel production using electric arc furnaces.

Tata Steel UK has secured an exemption from US tariffs. This will allow the company to export steel processed in the UK at the reduced rate applicable to shipments from that country, even if the raw materials were produced abroad.