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| UK Steel |
Amid calls from major steel companies in the developed world for safeguards to protect their industries, the UK steel industry also urges the government to take robust support measures.
The UK Steel Trade Association (UK Steel, hereafter "the Association") recently published an election manifesto calling for the swift introduction of measures to ensure a level playing field for the steel industry and improve the competitiveness of the UK steel sector.
According to Gareth Stace, Director General of the Association, the UK steel industry faces significant challenges due to declining competitiveness and increasing imports.
"The steel industry is the backbone of the economy, yet nearly 70% of the steel used in the UK is imported. This paints a bleak picture for the future of the UK economy," he said.
He further noted, "Our country's steel sector is a crucial part of the economy. The steel industry contributed £1.8 billion ($2.29 billion) to the UK economy and added £2.4 billion through the supply chain, with an additional £3.4 billion to the UK's balance of trade."
In its manifesto for the 2024 general election, the Association, which previously called for six key policies in its 2019 pre-election manifesto, is now calling for seven key policies.
Key policies include ensuring competitive industrial electricity prices comparable to competitor countries, reforming the wholesale electricity market, supporting the competitiveness and recycling of the electric arc furnace (EAF) scrap industry, and investing in decarbonization through government-industry partnerships.
In particular, the Association is calling for the Carbon Border Adjustment Mechanism (CBAM) to be implemented by 2026, ahead of the government's planned 2027 deadline, to protect the UK steel industry from imports. They also call for measures to ensure that steel used in public infrastructure projects accounts for more than 10% of the UK's total steel demand.
The UK general election is scheduled for July 4, with major polls showing the opposition Labour Party in the lead.
Local steel industry insiders note that the UK political arena is paying close attention to the Association's manifesto. There is a broad consensus on the need to protect the national steel industry, suggesting that implementing the UK CBAM will accelerate regardless of the election outcome.
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