U.K Steel Exports to the U.S. Nosedived 20%

SEATTLE (Scrap Monster): The UK steel exports to the USA have plunged by nearly 20% during the first three quarters of 2018. The country exported 73,000 fewer tonnes of steel to the U.S. during this period, when compared with the corresponding nine-month period in 2017. The imposition of 25% tariffs on imported steel by the U.S. administration is cited as one among the significant factors that have led to the slump in exports.

According to Labour MP Stephen Kinnock, Trump’s short-sighted tariffs have had seriously negative impact on its access to the potential U.S. market. As a result, the country is forced to export steel into other markets, mainly into the EU region, thereby threatening domestic steel industry in the region. As per estimates, nearly 45% of the steel originally destined to the U.S is now finding its way into the EU countries.

With additional domestic steel production capacity expected to come online in the U.S., the U.K exports are likely to be impacted further. The exports are likely to continue to drop. A disastrous no-deal Brexit would threaten the steel industry. Restrictions on trade with the EU may worsen the situation. The anticipated drop in Chinese steel demand may result in steel crisis, said Roy Rickhuss, General Secretary, Community Steelworkers’ Union.

Global oversupply could drive down overall steel prices, putting further pressure on manufacturers. Gareth Stace, UK Steel director, called upon the administration to take immediate steps in order to safeguard domestic UK steel producers.