UK considers options for future of domestic steelmaking

The UK government is weighing long-term options for its primary steel sector, following a series of state interventions in support of BRITISH STEEL and LIBERTY SPECIALITY STEELS UK (SSUK) earlier this year.

In April, ministers assumed control of BRITISH STEEL’s SCUNTHORPE site after owner JINGYE GROUP announced plans to shut its blast furnaces, citing daily losses of £700,000. Weeks later, the government also took over LIBERTY’s ROTHERHAM and STOCKSBRIDGE units after a High Court winding-up order.

According to the Department for Business and Trade, the preferred outcome remains re-privatisation, but full nationalisation remains on the table if no suitable buyer is found.

Industry observers see potential synergies between the assets, all of which were previously owned by CORUS and later TATA STEEL. In the past, the sites operated in a vertically integrated model, with ROTHERHAM and STOCKSBRIDGE supplying SCUNTHORPE via the electric arc furnace (EAF) route.

MEPS analyst Kaye Ayub, speaking to the BBC, said the long-term viability of UK steelmaking “remains in doubt,” noting that “domestic producers are having to contend with high electricity costs, reduced demand, and low-cost imports.” She added: “In the long term, I think the UK steel industry needs to rationalise and find ways of cutting costs.”

In 2021, the Ministry of Defence took ownership of SHEFFIELD FORGEMASTERS under the previous Conservative government. More recently, the state pledged £500 million in support of TATA STEEL’s planned EAF project in PORT TALBOT – a £1.25 billion investment aimed at decarbonising the site and aligning with UK net-zero targets.

Further clarity is expected with the publication of the UK government’s new Steel Strategy later this year. Import safeguard measures, due to expire in June 2026, are also under review.

Source: MEPS International