Steel Director’s Briefing – April 2026

In last month’s briefing, we highlighted a number of factors likely to influence the steel market in the months ahead, including rising European prices, tightening quotas, increasing energy costs, and the impact of geopolitical instability. As widely expected, much of this has now materialised, with prices increasing rapidly and uncertainty continuing to shape market behaviour.

European steel prices have continued to rise, driven by a combination of reduced quotas, the introduction of CBAM, and increasing energy costs. As anticipated, UK prices have now begun to realign, following Tata Steel UK’s recent price increase announcements. In parallel, prices from non-European producers have also risen, narrowing the gap that previously existed between global and domestic supply options.

Cost pressures are being further compounded by developments in the Middle East. The war in Iran is already causing significant disruption to energy prices, with no clear ceiling in sight. At the same time, freight rates from the Far East have risen, as vessels divert away from the Suez Canal and transit via the Cape of Good Hope. This has extended lead times and introduced additional uncertainty into the market. The longer-term risk remains that this develops into a more protracted conflict, potentially disrupting energy supplies and key shipping routes for an extended period.

Attention in the UK, is now firmly focused on quotas. Reports from Argus Media in March, suggested that the UK government is considering a significant reduction in import quotas, potentially as much as 90% on Hot Rolled, with changes expected to come into effect from 1st July. However, given the UK’s limited production capability in certain coil products, this raises immediate concerns about how demand will be met without triggering tariffs.

The potential implications are particularly acute for hot-dip galvanised material. Following the reduction of Korean and Vietnamese quotas last year, buyers turned to Turkey as an alternative source and there is now an expectation that quotas will also be applied to Turkish galvanised imports. If confirmed, this would leave buyers with limited options. A return to South Korea and Vietnam is possible, but this brings its own challenges. South Korean exports are closely managed against quota limits, effectively taking them off the market once thresholds are approached. Vietnam, by contrast, has no such controls, meaning material can be ordered only to be caught by quotas upon arrival in the UK.

Cold reduced coil remains outside of the quota system due to the absence of domestic production, but this does not insulate it from price increases. As input costs rise, particularly hot rolled feedstock and energy costs, cold reduced prices will inevitably follow.

There are also wider implications for UK supply chains. Service centres and stockholders, many of whom rely on imports to meet customer requirements, are particularly exposed to sudden policy changes. While there has been some recognition of previous issues — notably the introduction of a cut-off date for orders placed before mid-March — concerns remain that well-intentioned policy continues to overlook the practical realities of how steel is bought, shipped, and processed.

This links closely to the recently published UK Steel Strategy. The introduction of a formal strategy is, in itself, welcome and long overdue. However, there are clear concerns emerging from within the industry. The strategy does not yet appear to fully reflect the current realities of the UK steel and manufacturing sectors. Domestic production is limited, and UK manufacturers continue to rely on access to competitively priced imports in order to remain viable.

There is also a need for far greater sector-specific understanding. The requirements of industries such as automotive and construction differ significantly, and a more nuanced approach will be essential. More broadly, the UK steel industry cannot simply be “saved” in its current form. It needs to be rebuilt, and that requires a different mindset. If this is not addressed, there is a risk that policy intended to support domestic steel production could instead undermine the wider manufacturing base that depends upon it.

Overall, the direction of travel is clear. Prices are rising, driven by tightening supply, higher costs, regulatory change, and the conflict in Iran. However, the overriding theme remains uncertainty. Questions around quotas, global trade flows, energy markets, and geopolitical stability continue to cloud the outlook, making forward planning increasingly challenging.

At Cooper and Jackson, volumes have remained strong, and we continue to support customers in navigating these conditions. We currently hold a range of wide coil stock and encourage buyers to get in touch with their requirements.