UK Steel has announced that the government will hold the first meeting of the newly formed Steel Council later this afternoon, according to their official Press Release.
The UK steel industry is currently operating in a challenging and uncompetitive environment with echoes of the 2015-16 steel crisis, including rising imports, loss of market share, and increased global competition.
Rising imports, loss of market share, and increased competition in the global steel market have compounded the sector’s struggles and the industry has produced increasingly less steel over the years. Yet, they see an opportunity to reverse the decline.
However, the UK Government’s newly launched work on a Steel Strategy and the creation of the Steel Council, both of which aim to secure the long-term future of steelmaking in the country, addressing longstanding issues such as international steel overcapacity, high electricity prices, and limited policy support, which have hindered the industry’s competitiveness.
Council members include UK Steel, major steel producers, industry experts and leadership from the devolved nations. With the Government’s backing, UK steelmaking has a renewed chance to thrive and succeed.
The Government’s plans with the investment of up to £2.5 billion through the National Wealth Fund, aimed at rejuvenating the steel industry, is considered a key factor.
UK Government Unveils Steel Strategy to Revitalize Industry
The UK government has revealed its Steel Strategy, a comprehensive plan aimed at revitalizing and making the country’s steel industry more competitive, outlining several key initiatives that UK Steel believes should be central to its success.
A major focus of the strategy is shifted towards securing competitive electricity prices to ensure the steel industry remains viable, with the sector shifting towards a decarbonized future.
A bold trade policies are proposed to address global overcapacity and create fair competition in international markets, while also emphasising the importance of strategic public procurement policies, recognising the critical role steel plays in key supply chains across the UK.
UK steel also says that the success of the steel strategy depends on the close collaboration across the Government, expecting the cooperation of Key departments, such as HM Treasury (HMT), Department for Energy Security and Net Zero (DESNZ), and Defra, to work together to deliver the necessary changes for a competitive UK steel sector with the Department for Business and Trade (DBT).
“The establishment of the Steel Council marks a defining moment for the future of steelmaking in Britain. The Council represents a crucial step towards creating a comprehensive Government Steel Strategy – one that lays the foundations for a sustainable and resilient industry, ” said Gareth Stace, Director-General of UK Steel while calling this a defining moment.
British Steel, Tata Steel, Liberty Steel, Celsa Steel, Sheffield Forgemasters, Marcegaglia are all reportedly are the members of the steel council.