The UK metals industry faces its most critical period ever, a major new survey has revealed, as trade associations warn that a combination of punishing trade measures, soaring energy costs and a looming carbon border tax is pushing the sector to the brink. The State of the UK Metals Industry Survey 2026/27, organised by the UK Metals Council, has been launched at a time when many industry leaders believe the challenges confronting the sector are unprecedented in its history.
The survey, described by the council as the biggest report the industry produces, is designed to capture the latest views of firms across the entire metals supply chain. It will remain open until 5 September, with the full findings due to be unveiled at the UK Metals Expo on 4 November at the NEC Birmingham. The Expo itself runs across two days – 4 and 5 November – and is free to attend, featuring hundreds of exhibitors and expert-led seminars on sustainability, trade policy and supply chain resilience.
Steel safeguarding quotas under the microscope
At the heart of the survey is a drive to understand the full impact of the government’s incoming steel safeguarding quotas, which Rachel Eade, Chair of the UK Metals Council, has described as a potential “massive hammer blow” to the industry. The new trade measures, scheduled to take effect on 1 July 2026, will significantly reduce tariff-free import quotas and impose a 50% tariff on any steel imports above those quota limits. The quota volumes are expected to drop by approximately 60% compared with existing arrangements.
To cushion the immediate shock, the government has introduced a transitional phase. Goods imported under contracts concluded before 14 March 2026 will be exempt from the 50% surcharge between 1 July and 30 September 2026. This respite is intended to give businesses time to adjust to the new regime, but the UK Metals Council remains deeply concerned about the long-term consequences for firms that rely on imported raw materials.
The steel quotas are part of the UK government’s new Steel Strategy, which aims to boost domestic production to meet up to 50% of national demand in response to global overcapacity and unfair subsidies that have driven down prices. However, the Construction Leadership Council has warned that the inability to source all required steel grades and volumes domestically risks supply shortages and price increases. The EU has also announced plans to reduce tariff-free imports of British steel, with the UK business secretary raising concerns that the EU’s proposals could cut overall tariff-free imports from non-EU countries by 47% on 2024 levels from 1 July. Eurofer, the European steel trade body, has protested that the UK’s provisional quotas are set at “extreme low levels.”
“The more data and insight we can get will help us to fight this issue now and in the future,” Eade said, urging firms to participate in the survey to build a robust evidence base for lobbying policymakers.
Energy costs, CBAM and the skills crisis
Beyond the steel quotas, the survey seeks to capture the breadth of pressures bearing down on the sector. Rising energy costs remain a constant worry; the Confederation of British Metalforming notes that energy is always at the forefront of the metal forming industry, and the UK Metals Council’s own 2025/2026 report identified uncompetitive energy costs as a major challenge.
A further layer of complexity comes from the Carbon Border Adjustment Mechanism (CBAM). The survey will examine how firms are grappling with both the EU CBAM, which entered its definitive regime in January 2026 and now imposes financial obligations on imports of iron, steel, aluminium, cement, fertilisers, hydrogen and electricity, and the UK’s own CBAM, which is due to take effect from 1 January 2027. The UK mechanism will apply a comparable carbon price to imports of aluminium, cement, fertiliser, hydrogen, iron and steel, matching the cost applied under the UK Emissions Trading Scheme, in an effort to prevent carbon leakage and support decarbonisation.
The survey also addresses skills and apprenticeships, asking how recent changes to skills support are affecting attitudes to upskilling and recruitment. The Metals Council’s previous report highlighted an aging workforce and an apprenticeship system in need of reform, with 80% of companies struggling to attract skilled candidates. Trade bodies such as the British Stainless Steel Association, the Cast Metals Federation and the Aluminium Federation run their own training programmes, but the sector’s ability to replenish its talent pipeline remains a deep-seated concern.
Widespread promotion and participation
The survey is being promoted through the twelve trade association bodies that make up the UK Metals Council. These include the Aluminium Federation, the British Stainless Steel Association, the Confederation of British Metalforming, the Cast Metals Federation and TWI. The Aluminium Federation is encouraging its members to participate, emphasising that robust, high-quality data is essential to ensuring the metals industry’s needs are fully understood at a national level. The British Stainless Steel Association and the Cast Metals Federation are similarly urging their members to take part, with the aim of strengthening the collective voice of the sector.
Participation is open to any organisation that operates in or supplies into the UK metals sector – not just members of the trade bodies. The survey, which takes approximately ten minutes to complete, can be accessed via the UK Metals Council’s dedicated link. All responses are treated in strict confidence and reported only in aggregated form. Eade said the findings will be used to inform future discussions with government and policymakers, “ensuring we champion what our firms really need and not what Ministers think they do.”
