Steel Industry News – Late March 2025
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The Director General of UK Steel is urging the government to take decisive action to safeguard the future of the industry.
Gareth Stace’s message comes after the European Commission unveiled its bold Action Plan for Steel and Metals, which will deliver comprehensive measures to protect and strengthen the European steel industry.
With global overcapacity, coupled with rising energy costs, and new US tariffs and forthcoming trade diversion intensifying pressure, the EU’s rapid response highlights the urgency of the moment.
New research published by UK Steel proposes developing a new mechanism to fully address uncompetitive electricity prices faced by the UK’s steel industry.
UK industrial power prices are notoriously expensive, and UK Steel’s research shows that steelmakers pay up to 50% more than Germany and France.
New policy solutions are essential to delivering affordable energy, securing industry competitiveness and strengthening the UK’s steel production, thereby enhancing economic resilience and national security.
British Steel is launching a consultation which could lead to the closure of its two blast furnaces at Scunthorpe, threatening between 2,000 and 2,700 jobs. The business warns the blast furnaces are “no longer financially sustainable” due to difficult market conditions, imposition of tariffs and higher environmental costs.
British Steel chief executive, Zengwei An, said: “We understand this is an extremely difficult day for our staff, their families, and everyone associated with British Steel. But we believe this is a necessary decision given the hugely challenging circumstances the business faces.”
“We remain committed to engaging with our workforce and unions, as well as our suppliers and customers during this time.”
