Cheap steel imports put pressure on Llanwern workers as demand falls

Workers at the Llanwern steelworks are facing periods of reduced activity and being placed on lighter duties as cheaper imported steel puts pressure on the UK market.

The Newport site, operated by Tata Steel, has seen its share of the UK market fall to about 25%, according to Community Union president Andrew Gutteridge, who worked at Llanwern for more than three decades.

Gutteridge said increased imports of galvanised steel from countries including Vietnam, South Korea and India had contributed to falling demand for products made at Llanwern.

He said workers were still reporting for duty but were experiencing significant periods of downtime because production lines were not operating continuously.

The situation has raised concerns about the long-term future of the workforce, with Tata Steel continuing to face significant financial pressures.

Gutteridge said it was particularly concerning to see imported steel arriving at Newport Docks when the Llanwern works is only a short distance away.

He has called for the UK government to take further action over the country's steel import arrangements, including changes to quotas and measures affecting European steel.

The concerns come after the government introduced new arrangements for imported steel in July. The system uses quotas for certain products, with additional tariffs applied once those limits are exceeded.

Ministers say the policy is intended to protect Britain's steel industry while ensuring manufacturers continue to have access to the materials they need.

The government also announced a steel strategy earlier this year aimed at strengthening domestic production. However, unions argue that further action is needed to prevent cheaper imports from undermining British producers.

There are concerns that continued pressure on the industry could extend beyond Llanwern, with potential implications for Tata Steel's wider operations in Wales, including its plans for a new electric steelmaking furnace at Port Talbot.

Tata Steel has already warned that work on the Port Talbot project could face delays of several months because of an electrical problem.

The Welsh Government said it was in close contact with steel producers and would raise concerns over the impact of the current measures with the UK Government.

Ministers in Westminster said the quotas had been developed following discussions with the steel industry and that the system would be monitored before being reviewed after 12 months.

For workers at Llanwern, however, the concern is immediate: with cheaper steel continuing to enter the UK market, there are growing fears over how long reduced production and downtime can continue.