Warning over Chinese steel imports diverted from US

Donald Trump’s tariffs could lead to substandard steel from China being diverted into the UK market, the Construction Leadership Council (CLC) has warned.

In a joint statement, Builders Merchants Federation chief executive John Newcomb and Construction Products Association chief executive Peter Caplehorn said the CLC’s Material Supply Chain Group was monitoring potential impacts from the tariffs on steel imports.

They warned that Chinese producers may redirect steel originally destined for the US towards Europe in response to the 25 per cent US tariff on Chinese steel.

"While this could temporarily reduce prices, the primary concern is ensuring that imported materials, regardless of origin, are compliant and safe," the statement said.

Steel dumping has not yet been observed in the UK, but quotas have been introduced to help stabilise prices and control volumes.

“There are also reports of steel seeing early signs of price strain”, the statement said.

In addition, global shipping has also been disrupted, with ships either held in ports or diverted, according to the statement.

“While this is not having a direct effect yet, it remains on the group’s watchlist. Lessons learned from the pandemic suggest that such major logistics developments can cause cost increases.”

Elsewhere, the direct effects of changes to US tariffs on other construction products remain uncertain, according to the statement.

However, industry leaders fear the economic instability triggered by these policies may depress both consumer and business investment, potentially leading to volatility in construction material prices and delays in contract awards or renegotiation of fixed-price agreements.

Beyond steel, most of the price rises predicted in March have now taken effect, with the majority falling within the 3–7 per cent range.

Notable exceptions include PIR insulation, which has increased by 10 per cent, and ongoing pricing anomalies in CLS timber and ironmongery.

Although material availability remains generally stable across the UK, certain regions have reported shortages of aircrete, insulation blocks and timber products such as CLS, carcassing and battens.

In anticipation of potential growth later in the year, the Construction Leadership Council urged the construction industry to collaborate closely with supply chain partners.

It called on contractors and clients to forecast demand and communicate early with suppliers and merchants to manage risk and ensure timely production and delivery.

Source: CLC Materials Supply Chain Group statement