Tackling steel price volatility requires more than tariff reform
Commenting on the impact of tariffs on steel prices in the UK, Emily Sawicz, Director and Industrials Senior Analyst at RSM UK, said: “The sharp increase in steel prices in Britain this year underlines how exposed the UK market has become to structural cost pressures and supply chain risk. UK producers face significantly higher energy and scrap costs than overseas competitors, alongside a heavy reliance on imports.
“Proposed UK steel tariffs may offer some short term protection, but on their own they risk pushing up domestic prices further if they are not aligned with a wider industrial strategy. With global steel markets characterised by significant overcapacity, and EU trade measures creating a potential cliff edge for UK producers, tariff policy needs to sit alongside action on energy pricing, trade alignment and carbon border mechanisms.
“Without that coherence, higher prices risk accelerating the erosion of domestic capacity, increasing the UK’s exposure to global shocks at a time when steel is increasingly recognised as critical for infrastructure delivery, security and supply chain resilience.”