UK steel on the edge: panel debates steps to secure the industry’s future
7 March 2025
At the Make UK Conference 2025, industry leaders, policymakers, and business representatives gathered to address the urgent challenges facing the UK steel sector. The discussion underscored the critical need for government action, investment, and a robust strategy to secure the future of UK steel.
The panel at the conference built on the momentum from December’s UK Steel Parliamentary Summit, where Secretary of State Jonathan Reynolds reaffirmed the Government’s commitment to the sector. At that pivotal event, industry leaders made it clear that securing the future of UK steel required urgent action on energy costs, trade protections, and public procurement.
UK Steel’s conference panel brought together key industry leaders, policymakers, and business representatives. Gareth Stace was joined by panellists steel MP Jonathan Brash, Roz Bulleid (Green Alliance), Roy Rickhuss CBE (General Secretary of Community Union), and the Co-Chair of the Steel Council, Jon Bolton.
While positive steps have been taken since our December summit - such as Heathrow’s commitment to purchasing UK-made steel in its expansion - many of the same challenges remain unresolved. However, Council Co-Chair, Jon Bolton, did shed light on how the Council and Department for Business and Trade is tackling the issues at hand – with informal working groups planned, plus a research piece into capacity and capability, an investigation into raw materials, and industry roundtables already being undertaken.
This week’s panel discussion underscored the growing urgency of the ongoing issues, making it clear that without swift and decisive intervention, the UK risks falling further behind in the global steel race.
Energy costs are weakening the industry
The panel highlighted the crippling impact of energy costs on UK steelmakers. While there is political will to address the issue, no definitive Government action has been taken. Power costs can represent up to 180% of steel producers’ Gross Value Added (GVA) in the UK. Without urgent intervention, the competitiveness of UK steel will continue to decline. Gareth pointed out that UK steel producers currently pay up to 50% more than competitors in France and Germany, adding £37 million to UK steel electricity costs. Industry leaders emphasised the need for a clear and immediate solution rather than prolonged uncertainty.
Trade and shielding: The UK must act now
Concerns were raised over the UK’s lack of trade protections, particularly in light of the EU’s Carbon Border Adjustment Mechanism (CBAM), which will come into full effect in 2026. With the UK delaying its own CBAM by a year, there are fears of market distortion and an influx of cheap steel imports. Jonathan Brash went on to ask if the UK ought to introduce immediate tariffs on imports to safeguard domestic production while refining a more nuanced trade defence strategy in an attempt to tackle the potential flood of imported high-emission steel.
Capitalising on our wealth of domestic steel scrap
The panel highlighted the critical issue of steel scrap and its underutilisation within the UK. While the country generates 11 million tonnes of scrap steel annually, much of it is exported rather than used domestically. The discussion explored barriers to greater scrap utilisation, including a lack of local demand due to insufficient electric arc furnace (EAF) capacity. Currently, the UK has just 5 million tonnes of scrap demand, meaning significant volumes are lost to overseas markets.
Roz Bulleid discussed the prospect of policy interventions - such as restrictions on exporting poorly sorted scrap or adjustments to carbon pricing or VAT – and how these could help incentivise domestic use. Concerns were raised that an over-reliance on scrap could leave the UK unable to produce certain high-grade steels essential for industries like defence and construction. However, EAF capacity is increasingly on the rise, for example the Materials Processing Institute unveiled earlier this year that nuclear-grade steel can be produced in an EAF.
Procurement: a missed opportunity
Despite positive steps such as Heathrow committing to UK steel, panellists criticised the continued reliance on imported steel for major infrastructure projects, including MOD contracts. Roy Rickhuss CBE quoted recent statistics highlighting that the UK industry only supplied 32% of the national market, and expressed his deep disappointment that market share had crumbled from 50% just two years prior.
While Government departments do purchase a bigger share of UK-made steel, the lack of mandatory UK steel content in public sector procurement was described as a fundamental policy failure. Industry representatives called for Government action to enforce a percentage of UK steel in public projects, moving beyond voluntary commitments like the UK Steel Charter.
However, Jonathan Brash said of Government motivations, “The reason we don’t have a competitive market for steel in this country is because there’s absolutely no incentive to have it… the institution of government doesn’t really understand why you’d ever pay more for British steel if you can get a cheaper alternative from abroad,” he said. He added that the incentive for a competitive market has to be forced.
Is time running out on green steel leadership?
The UK was the first country to develop a Net Zero Roadmap for steel, but concerns were raised over whether this has translated into a competitive advantage. While there is potential to lead in green steel production, investment and policy alignment are needed to accelerate progress. There was also debate over the role of scrap-based steel production versus maintaining primary steelmaking capacity, with calls for a balanced approach to ensure the UK retains a diverse and resilient steel industry.
Can the Steel Council develop an effective strategy?
The overarching message was clear: time is running out. The government’s steel strategy consultation is ongoing, but industry leaders stressed the need for urgent interim measures to protect jobs, stabilise energy costs, and level the playing field on trade. There was a strong consensus that without swift and decisive action, the UK risks losing its steel industry altogether.The discussion ended with a stark warning - without bold decisions and government intervention, British steelmaking could face irreversible decline.
The next 12 months will be critical in shaping the industry's future.