Llanwern Steelworks Feels the Heat from Cheap Steel Imports

Published: Aug 24, 2026 14:17 (GMT+8)

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Tata Steel's Llanwern galvanizing plant in south Wales is running at roughly half capacity, with production lines going idle for parts of the day as orders fall short, driven by a surge of cheap steel from Asia. New 50% UK import tariffs introduced in July were meant to protect domestic producers, but expanded tariff-free quotas have blunted the effect for galvanized steel: India's allowance rose from 98,000 to 125,000 tonnes, Vietnam's more than tripled to 174,000 tonnes, and South Korea received a new 100,000-tonne quota. Llanwern produces about 600,000 tonnes of galvanized steel annually, nearly half of UK demand, and Tata says the situation "isn't sustainable," warning it could also affect its £1.25bn electric arc furnace transition at Port Talbot. The UK government says it will review the quota system after 12 months.

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