Tariffs Are Here. Is Your Business Prepared?
The UK metals market is at a turning point, with two seismic shifts threatening supply chains and profitability. The potential imposition of US tariffs on imported cars and the closure of the Scunthorpe steelworks spell uncertainty for businesses across the sector.
What This Means for UK Businesses
The anticipated 25% tariff on UK car exports to the US is a direct blow to the competitiveness of British manufacturers. At the same time, the loss of a key domestic steel supplier in Scunthorpe will force businesses to rely on alternative and potentially costlier imports. The repercussions will be felt across industries, from automotive and construction to machinery and infrastructure.
Here’s what to expect
Rising Material Costs
Steel and aluminium prices are likely to surge, squeezing margins across the supply chain.
Supply Chain Disruptions
Dependence on imported materials introduces lead time risks and potential bottlenecks.
Higher Consumer Prices
Increased costs may be passed down the chain, affecting end-users and overall demand.
Economic Ripple Effects
Regions dependent on steel production, like Scunthorpe, face economic downturns and job losses.
How Can You Protect Your Business?
At Attara, our metals desk works closely with UK businesses to manage their exposure to the metals market. Through access to sophisticated financial solutions, we help mitigate volatile price changes, giving widespread access to strategies once reserved for a limited segment of the market.
Our hedging solutions run alongside your existing procurement methods, requiring no changes to daily operations while effectively offsetting fluctuations in physical purchases and sales.
Our expertise covers:
Futures Contracts: Agreements to buy or sell a specific commodity at a predetermined price and future date.
Options: Providing the right, but not the obligation, to buy or sell a commodity at a fixed price within a set timeframe, allowing for flexible risk management.
Swaps: Locking in an agreed price for a specified period, with settlement payments made based on market price differences at the end of each month.
Steve Farrell
Head of Metals & Agriculture
SPEAK WITH A SPECIALIST
Industries We Support
Our tailored solutions benefit a wide range of industries, including:
– Mining
– Recycling & Waste Management
– Manufacturing
– Construction & Fabrication
– Civil Engineering
– Refining
– Renewables
Act Now to Safeguard Your Future
With tariffs looming and domestic steel supply tightening, proactive risk management is no longer optional. It’s essential. Hedging your metal exposure ensures more predictable cash flow and shields your business from sudden price swings.
Don’t wait for costs to rise before taking action.
Speak to one of our experts today and explore how our hedging and risk management solutions can help your business weather the storm.
