The British steel industry still relies on imports – UK Steel

The level of domestic demand met by domestic production in the UK is insufficient to attract investment

The UK steel sector still relies on imports, despite planned quota reductions. Currently, about one-third of the country’s public steel procurement comes from abroad. This was reported by Kallanish, citing a statement by UK Steel CEO Gareth Stace.

Unlike the EU, the UK still relies on imported capacity. Stace called the current level of domestic demand met by domestic production in the UK (about 30%) insufficient to attract investment, compared to figures in the US (80%) and the EU (75%).

The head of UK Steel expressed concern over a possible reduction in quotas by the EU, as 80% of British exports go to that region. This could lead to job losses if the parties do not reach an agreement.

“I believe we should allow significant imports from the EU, and the EU, in turn, should open its market to exports from the UK. I look forward to cooperating with countries whose economies are similar to ours—those who do not want to see dumped or subsidized steel on the market, which destroys the industry and halts investment,” he noted.

Stace expects a rapid increase in the market share of domestic producers after the new quotas take effect on July 1. He reiterated the government’s ambitious goal: to ensure that 50% of domestic consumption is covered by steel produced in the UK.

“I would like to believe that this will happen within one or two years,” added Gareth Stace.

At the same time, he noted that British Steel is losing ground in the construction steel segments (sections and beams) due to “short-sighted” environmental requirements. Architects are increasingly demanding “green” steel, associating it exclusively with production in electric arc furnaces (EAF). Stace also emphasized that the Welsh government already plans to use only EAF steel for all projects funded by the state budget.

“If we buy imported EAF steel instead of supporting British Steel in its transition to this technology, the company will never be able to modernize,” he stressed.

Stace concluded that without urgent changes to construction specifications, British Steel will continue to lose market share to imports from Europe or other regions. Meanwhile, European suppliers will ship green steel to Britain, reserving blast furnace products for their own use. This approach does not contribute to reducing global emissions and only harms British industry.

As reported by GMK Center, the UK government has announced a new strategy to protect the steel industry. Starting July 1 of this year, steel import quotas will be reduced by 60% compared to current agreements, and tariffs on imports exceeding the quota will increase from 25% to 50%.