UK steel supply is about to tighten significantly.
The UK Government has announced major changes to UK steel import quotas, effective 1 July 2026, reducing tariff-free imports of Category 1 Hot Rolled Steel products by 51% compared with the current H1 2026 quota.
This is expected to have a significant impact on supply and pricing throughout the second half of 2026 and into 2027.
The numbers tell the story
In 2025, the UK imported over 1.08 million tonnes of steel from the EU.
From 1 July, the annual tariff-free quota will reduce to just 375,000 tonnes, with only 93,750 tonnes available each quarter.
Table showing the annual and quarterly quota for import steel.
Based on these figures, we estimate steel prices could rise by 30-35% during the second half of the year, with worst-case increases of up to 50%, depending on the steel’s origin.
What happens next?
As quarterly quotas begin to fill, the immediate market impact is:
- Reduced availability of key HR products, especially wider-width material.
- A potential 50% tariff once import quotas are exhausted.
- First come, first served procurement, making early ordering critical.
- Longer lead times, spiking at the end of each quarter.
- Greater competition for remaining quota volumes and available stock.
USP Steels has secured supply through our strategic partnerships with Europe’s leading mills, including SSAB, ArcelorMittal, NLMK and ThyssenKrupp. This gives us the confidence to continue supplying our customers as market conditions tighten.
As businesses move to source material before quotas are exhausted, demand is expected to increase rapidly. Contact your Account Manager today to protect your pricing, reserve your material, and maintain continuity across your supply chain.
Get in touch with our sales team to discuss the upcoming changes and secure your steel stocks before the tariffs are implemented on the 1st July 2026.
Call USP Steels on: 01384 598000
Reach out by email: sales@uspsteels.com
