The association called for competitive electricity prices, a new dedicated investment fund for steel, a strengthened UK Carbon Border Adjustment Mechanism (UK CBAM), and support for investment in domestic scrap steel processing.
UK Steel said there is a significant opportunity to strengthen the UK’s industrial base, increase skilled employment and retain a greater share of the value generated by future infrastructure and manufacturing investments within the country.
According to the association, domestic producers currently supply only 30% of the steel used in the UK, while around 70% is imported. The government aims to increase the share of domestic production in the home market to nearly 50%.
Electricity costs and investment support take centre stage
UK Steel’s first demand was the introduction of a rebalancing mechanism for wholesale electricity prices to place British steel producers in a more competitive position.
Secondly, the association called for the government’s existing £2.5 billion steel investment commitment to be used to support new production capabilities, efficiency improvements and decarbonisation investments.
UK Steel also said that the UK CBAM should be strengthened in a way that supports domestic production and investment.
Call for support for scrap steel processing investments
The association’s fourth priority was to increase domestic scrap steel processing capacity. UK Steel called for incentives to encourage investment, enabling British steelmakers to access the growing volumes of high-quality scrap they require on competitive terms.
UK Steel said these measures would not only support the steel sector but also contribute to increased investment, skilled employment, stronger supply chains and economic growth across the country.
The association added that, with the right policy framework in place, a larger share of the UK’s steel demand could be met through domestic production.
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