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Potential Loss of Turkish Exemption Status
The UK may abolish the developing country exemption for hot-dip galvanized steel. UK Hot-Dip Galvanized Steel Quotas could apply to Turkish imports, affecting market access. Tata Steel, the UK’s sole galvanized steel producer, requested the review. Meanwhile, Turkish shipments accounted for 5.8% of UK imports in 2025, exceeding the 3% exemption threshold. Consequently, traders anticipate shifts in sourcing strategies.
Impacts on UK Steel Market and Traders
Changes in UK Hot-Dip Galvanized Steel Quotas could raise import costs for Turkish sheet steel. As a result, buyers may turn to South Korean and Vietnamese products, previously constrained by quota adjustments. Meanwhile, total UK HDG imports exceeded one million tons in 2025. Therefore, domestic galvanized steel producers might gain competitive advantage if the exemption is removed.
Outlook on Global Turkish Steel Exports
Turkey’s steel exports grew steadily in 2025, rising 12.5% to 15.1 million tons. However, quota changes in the UK could slow Turkish market expansion. In contrast, other European and Asian buyers may adjust procurement to balance volumes. Consequently, stakeholders in recycling, secondary steel, and circular economy markets should anticipate potential pricing volatility.
ScrapInsight Commentary
Removing Turkey’s exemption may strengthen UK domestic producers but create short-term import volatility. Prices for galvanized sheets could rise, influencing downstream manufacturing. The circular economy may benefit if local scrap utilization increases.
