Britain’s growing aluminium scrap exports are raising concerns about the long-term availability of a critical raw material for domestic industries. According to Make UK, aluminium scrap exports reached 624,314 tonnes in 2025, up 43% from 2016 levels, while shipments to India increased 94% to nearly 199,000 tonnes. Exports to the US surged 989% year-on-year to 23,560 tonnes after aluminium scrap was excluded from Section 232 tariff measures. Make UK estimates the UK could require up to 6 million tonnes of recyclable aluminium scrap to support total aluminium demand of 8 million tonnes by 2035. The organisation warned that continued scrap outflows could weaken domestic manufacturing, discourage investment and reduce supply chain resilience. It called for greater investment in scrap collection, sorting and processing infrastructure, improved recycling standards and measures to retain critical aluminium alloys within the UK’s circular economy.

【SMM Steel】India has warned it may withdraw tariff concessions granted to the UK under their free trade agreement unless concerns over Britain's new steel safeguard measures are addressed. From July 1 2026 the UK will cut duty-free steel import quotas by 60% and impose a 50% tariff on over-quota shipments. India is considering "rebalancing" measures including rolling back planned duty cuts on Scotch whisky. Despite UK Trade Secretary Peter Kyle's recent visit to New Delhi to push for the deal's implementation no firm timeline has been set. The FTA which would liberalise 99% of UK tariffs remains unsigned as the steel dispute creates a significant hurdle.

[SMM Steel] Tata Steel UK received an exemption from US steel tariff rules, allowing steel processed at its Port Talbot plant in Wales to qualify for the lower 25% US tariff rate applied to UK steel exports. The exemption permits products manufactured at Port Talbot to be treated as UK-origin steel even if raw materials are sourced outside Britain. Under current US trade measures, most steel imports face a 50% tariff, while UK-origin steel meeting “smelting and casting” requirements qualifies for the reduced tariff rate.

[SMM Steel] UK Steel warned that Britain’s steel industry still relies heavily on imports, with domestic producers supplying only around 30% of local demand, far below levels seen in the EU and US. The association expressed concern that tighter EU quotas could hurt British exports, as around 80% of UK steel exports are shipped to the EU market. UK Steel also criticized growing preference for imported “green steel” produced via electric arc furnaces (EAF), warning that this trend could undermine investment in domestic steel decarbonization. The UK government plans to cut steel import quotas by 60% from July 1 and raise over-quota tariffs from 25% to 50%.

【SMM Steel】Czech group Sev.en Global Investments proposed the UK find a single buyer for British Steel and Speciality Steel UK, potentially creating Britain's largest steel producer. The CEO said merging the two assets would require lower budget expenditures and ensure a more stable model. Sev.en plans to invest ~£100m in its UK assets and is ready to invest "hundreds of millions of pounds" in further development under the 7 Steel brand. British Steel came under govt control in April 2025 due to closure risk from Jingye. SSUK was declared insolvent following Liberty Steel's difficulties. If successful, Sev.en could overtake Tata Steel as the UK's largest steel producer.

[SMM Morning Meeting Minutes: LME Zinc Records Five-Day Winning Streak, Daily Candlestick Center Continues to Rise] Overnight, the LME zinc contract opened at $3,204.5/mt. At the beginning of the session, it dipped to a low of $3,203/mt, after which bulls increased their positions, driving the price to continue rising and reaching a high of $3,268/mt. It maintained a strong performance toward the close, eventually settling up at $3,245.5/mt, an increase of $37.5/mt, or 1.17%. Trading volume rose to 120,000 lots, and open interest increased by 4,650 lots to 236,000 lots.