Fabrication boss wants government rethink on imported steel tariffs it warns could make projects uneconomical
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Concerned – SCH Site Services MD Gary Finley wants a government rethink.
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Fabrication boss wants government rethink on imported steel tariffs it warns could make projects uneconomical
The boss of a County Durham steel fabricator is urging the government to rethink its proposed plans to introduce 50 % tariffs on imported steel.
The tariffs, due to come into force in July, would leave UK steelwork fabricators to confront a perfect storm of rising costs that threatens to make construction projects financially unviable.
That’ s the view of Gary Finley, from Newton Aycliffe-based SCH Site Services, who works extensively in the construction and steel fabrication sectors.
The warning comes as ArcelorMittal’ s £ 60-per-tonne increase on steel sections from March compounds earlier increases from ArcelorMittal and British Steel, while the government’ s planned new Steel Strategy introduces import quotas slashed by up to 60 % and tariffs doubled to 50 % from July 1.
Industry estimates suggest this cost gap could widen by as much as £ 200 –£ 300 per tonne on certain steel products or more on others, with fabricators operating on already tight margins particularly exposed on fixed-price contracts where escalation clauses are not in place.
“ What’ s really driving these increases isn’ t the story,” says Gary.“ The question fabricators are asking is whether their projects will remain financially viable if steel prices continue rising while demand stays flat. Rising costs in a strong market can be absorbed. Rising costs in a flat one cannot.”
The concern extends beyond immediate material costs. If wider inflation follows, renewed pressure on interest rates could increase the cost of borrowing to build, directly impacting client confidence, developer appetite and, ultimately, the pipeline of work for the fabrication sector.
While the government’ s proposed strategy aims to increase UK sourced steel from 30 % to 40 %-50 % of total
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