unlock multi-billion pound opportunity in steel procurement reforms

To provide a policy blueprint for the Government’s Steel Strategy, UK Steel published Public Procurement of Steel: Time for new thinking for a thriving industry. The report contains a range of proposals to improve the uptake of UK-made steel in taxpayer-funded projects which could unlock billions for the steel industry and manufacturing supply chains.

Recommendations

The UK Government should use the contribution our steel industry makes to national security to mandate or incentivise the use of UK-made steel, where possible, for projects of energy, defence, and related infrastructure via domestic content stipulations in contracts where public funding or subsidy is involved utilising World Trade Organisation (WTO) opt-outs.
In future auctions, the Government should evaluate the bidders’ contributions to sustainability, resilience, and local content, with these criteria applying to at least 30% of the volume auctioned annually, as the EU is currently implementing without challenge in its Net Zero Industry Act.
These should be required to adhere fully to the Procurement Policy Note for Steel5 and, given their criticality for our economy, be subject to local content requirements of not below 30%.
The existing PPN should be strengthened to require developers and public bodies to justify why they did not use UK-made steel, if it was available, and require a mandatory consultation of the forthcoming UK Steel Digital Catalogue.
A public-private partnership should drive investment into steel supply chains, which will attract inward investment, create jobs, drive economic growth, and ensure the UK develops resilient supply chains in the face of uncertain geopolitics.

F.A.Qs

How much money is spent on steel from abroad annually?

The latest data reveals that one third of the steel it procures is imported, with £1.5 billion spent abroad from the public purse every year rather than supporting UK steel producers

Is there missing procurement data?

Yes. These predictions have been made without even accounting for major initiatives such as carbon capture and storage, hydrogen infrastructure, nuclear energy, and offshore wind that the new Government wants to implement.

What's the forecast steel spend?

Over the next decade, government steel requirements will exceed £4.3 billion.

What's the biggest new steel market opportunity?

To shine a light on these missing sectors in Government figures and to show the real opportunity for both the Government and the British steel sector, UK Steel commissioned an independent report from LumenEE to identify the total steel needed for the rapid expansion of the UK’s offshore wind sector, out to 2025.

Offshore Wind: a case study

The UK’s offshore wind pipeline alone requires around 5.6 million tonnes of steel annually—equivalent to 20% of total UK steel production in 2023. However, despite this significant demand, the vast majority of steel for offshore wind is currently sourced from overseas mills that are better positioned to supply the required volumes and specifications.
One key factor is that most offshore wind components are fabricated abroad and then imported. Over the past five years, less than 2% of the required UK steel components (by weight) were fabricated domestically.
Yet, the UK steel sector already has the capability and capacity to supply key steel types, including rebar, tensioning strands, rolled sections, and open sections. This means UK producers are well-placed to:

  • Supply rebar and tensioning strands for emerging concrete floating foundations and gravity bases.Provide a broad range of steel for secondary structures and specialist components such as bolts, flux, and welding materials.
  • Leverage expertise from the oil and gas sector to supply anchors and moorings for floating offshore wind, including fabrication of steel elements.
  • Looking ahead, between 2026 and 2050, the UK offshore wind sector will require between 20 and 25 million tonnes of steel. The UK steel sector could supply up to 51% of this demand with its current capabilities, and with investment in slab casting and plate production, this figure could rise to 87%.

With the Steel Strategy and the National Wealth Fund yet to set out a decisive business plan, UK mills have a prime opportunity to bridge the gap between supply and demand. New analysis shows that with the right investment, UK steelmakers could meet up to 86% of offshore wind plate requirements, keeping billions in the UK economy, securing thousands of skilled jobs, and strengthening Britain's industrial future instead of relying on overseas steel.
The urgency extends beyond renewables. It is now a national security imperative. Offshore wind experts, LumenEE, highlight that boosting UK steel production will also strengthen national defence supply chains. Yet, underinvestment in fabrication and production facilities is holding the sector back, risking the UK's ability to meet demand, secure supply, and support defence manufacturing—potentially locking the UK out of a £21 billion economic opportunity in offshore wind and beyond.
Now is the moment to act. With the right strategy and investment, the UK can power its offshore wind revolution with homegrown steel, creating jobs, driving economic growth, and securing a strong industrial future.

25MT of steel in offshore wind
Offshore wind experts LumenEE estimate that up to 25 million tonnes of steel will be needed in the next 25 years for offshore wind investment around the coast of Britain. 

This single opportunity alone is worth approximately £21 billion in steel purchases. 

This case study in just one sector shows the massive opportunities for the UK industry across the wide metals supply chain if there was a supportive procurement policy environment.

Offshore wind steel demand and supply 

Steel fabricated in UK for British offshore wind projects

Analysis commissioned by UK Steel shows that in the last five years less than 2% of steel used in UK wind farms was fabricated in the UK, and almost none using UK-made steel. Of the imported components, 55% came from rest of Europe, 26% from Middle East or China and 18% was of unknown origin.

What the British steel sector can already supply to offshore wind

Research shows the British steel sector can already supply up to 13 million of the 25 million tonnes of steel needed for offshore wind over 25 years.

Amount of steel the UK steel industry could supply, with investment

The statistics from LumenEE's report show steelmakers could meet up to 86% of offshore wind plate requirements with investment.

Relative size of the UK pipeline

The UK offshore wind pipeline out to 2030 will need approx 6 million tonnes of steel. This is almost 6x greater than steel demand for highways, rail, defence, nuclear and government buildings combined.