UK Government Implements New Steel Procurement Regulations to Support Local Sales

UK: The UK government has made changes to the regulations outlined in the Public Procurement Notice (PPN) regarding the reporting of Steel origin for public projects. The main objective is to enhance the tracking of Steel sources, leading to increased procurement of melted and poured Steel from the UK. This action is expected to discourage UK buyers from sourcing material from sanctioned suppliers.

Up until now, the origin of the Steel used in public infrastructure remained unknown, including the possibility of it being of Russian origin. In the year 2020-21, public ventures in the UK utilized £640 million worth of Steel, out of which only around £268 million worth was produced domestically, indicating significant potential for increased domestic consumption if the revised PPN is followed. Opting to purchase British Steel will also help in creating more job opportunities for the people of the country.

In April of last year, the UK enforced a ban on imports of finished Steel from Russia. However, despite this ban, Russia was still able to generate billions of dollars by selling its Steel to third countries at low prices. These third countries would then process the Steel and export it to the EU at even lower prices. Unfortunately, this has negatively impacted the competitiveness of domestic prices in the UK.