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Informist, Thursday, Jun. 25, 2026

NEW DELHI – Tata Steel UK Thursday said it was disappointed and concerned by the UK governmnt's steel quota framework, which allows limited number of steel imports into the country along with high tariffs outside the quota. Tata Steel UK, wholly-owned subsidiary of Tata Steel Ltd., expects the government to reconsider aspects of the framework, the company's Chief Executive Officer Rajesh Nair said in a statement. 

"We are disappointed by elements of the final framework announced today and we are very concerned about the implications for the long-term competitiveness, sustainability, growth and future investment outlook for the UK steel sector," Nair said. The final steel quota will continue to allow significant import penetration in the country exposing domestic production and supply chains to continued pressure, Tata Steel UK said.

On Thursday, the UK government announced new quota for steel imports to reduce dependence on other nations and increase domestic production. Beginning Jul. 1, the UK government will limit tariff-free steel imports, reducing overall quota volumes by 51% compared with the existing steel safeguard measures. Any imports above the country-specific quotas will face a 50% tariff. The measure will apply to imports of steel products that can be made in the UK. The steel safeguard quota and the 25% additional safeguard duty will cease to apply after Jun. 30, according to the UK government. 

"We do not believe the final quota levels published today reflect UK market conditions or the pressures facing the domestic steel industry," Nair said. "If the government's ambition of building a sustainable steel industry capable of supplying 50% of UK demand is to be realised, quota arrangements will need to provide adequate support for domestic steel producers, and support the long-term growth of the UK steel sector," Nair said. 

"We expect the government to reconsider aspects of the framework and continue working with the UK steel sector to ensure a level playing field that supports domestic production, protects employment and strengthens the wider UK manufacturing supply chain," he said. 

In a note, Tata Steel UK said it was concerned that quota volumes in a number of product categories, including metallic coated steels, packaging steels, and hollow sections, continue to permit significant import penetration and do not sufficiently reflect underlying UK market conditions or the pressures facing domestic steel producers.

Under the new quota, annual steel exports from India to the UK has been capped at 33,456 tonnes for non-alloy and other alloy hot-rolled sheets and strips; 125,796 tonnes for metallic coated sheets; and 8,777 tonnes for gas pipes. The UK has also capped steel imports under the quota framework from the European Union at 375,000 tonnes for non-alloy and other alloy hot-rolled sheets.

The effects of overcapacity, compounded by high operating costs, have resulted in the UK crude steel production declining by more than 50% in the last 10 years, the UK government said.

For the March quarter, Tata Steel's consolidated net profit was INR 29.26 billion on revenues of INR 632.70 billion. Thursday, shares of the company closed 0.8% lower at INR 188.71 on the National Stock Exchange.  End

Reported by Astha Oriel

Edited by Akul Nishant Akhoury

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