Overproduction is one of the biggest risks to the steel industry. It’s causing significant issues for various countries, including the UK, US, and countries in the EU. As a result, discussions are taking place to potentially agree a UK/EU steel pact. It could have a huge impact on trade. We want to have a look here, then if you want to order ERW tubes, you can rely on us.
Asian dominance
There have been massive changes in the steel industry in the last few decades. Crucially, we’ve seen huge increases in production capacity. Many of the biggest producers in the world, particularly in China, India, and Japan chose to expand to help them bring down prices and stay competitive. However, it has lead to major issues.
Currently there is a big problem with overproduction; countries around the world are producing more steel than necessary, far outpacing demand. China in particular has far more steel sitting around than it needs. This has a massive impact on global commodities markets. It can also affect jobs in various countries as they curtail their own production.
A new pact
Currently the UK and EU are exploring the idea of forming a new Western steel alliance. The aim is to provide protection against steel from China and other Asian countries. It would mean aligning policies and giving preferential tariff rates on steel. It could have a big impact on steel products like ERW tube.
One of the major things here is the pact would protect the UK from new tariffs. Currently the EU is planning to impose a 50% tariff to provide protection for member producers. It could have a big impact on the UK because producers here export half of their products to Europe.
There is support from both the UK and EU sides to agree a pact. From the British side, UK Steel Director Gareth Stace said we need to focus on agreeing carve outs with the EU and make our trade defences tighter. A broad alliance could do a lot of good, including keeping “heavily subsidized imports out of Britain”.
Two EU officials gave comments in support of the agreement. One said the idea had been on the table for a while, but it was “more appealing” now due to the current overproduction issue. The other official, speaking earlier this month, said Europe needs to defend their industry. The door was open for a pact with the UK.
Ordering high quality ERW tube
Union Steel Tubes understands the value of high quality steel and the risks of overproduction, especially if it is lower quality. We urge clients to choose reliable products from the best suppliers. We’re always happy to help if you want to order welded tubing. Our standards and quality controls ensure you can buy from us with confidence. Additionally, we have a huge product range to cater for many needs.
So, speak to us about ERW tube if you need it. We can discuss all of the options with you and recommend products. Then, if you order, we can get tubing to you as quickly as possible.
