Insight 37 - Magazine - Page 24
UK STEEL
PRODUCTION
AT LOWEST
LEVEL SINCE THE
DEPRESSION
U
K Steel, the trade association for
the UK steel industry, says that high
energy prices and weak demand
are taking an enormous toll on UK steel
production. Efforts to boost the sector’s
competitiveness need accelerating.
Statistics released show production levels of
steel made in the UK during 2022 dropped to
their lowest level since the Great Depression,
falling by 17% on year to 6 million tonnes
(mt). Steel trade activity reduced both in
the UK and globally as supply chains were
disrupted and demand has reduced.
In 2022, UK market demand for steel fell
by 15% to 8.9mt, only slightly higher than
8.6mt in 2020 during Covid, raw material
costs remained at historically high levels
and energy prices soared.
"High costs are hard
to swallow and force
production levels down"
High costs are hard to swallow and force
production levels down. This February,
Government announced policy plans for
renewable levies, capacity charges and
network costs to alleviate energy cost
burdens for steel producers and improve
competitiveness, but regulations may not all
take effect until 2025.
Gareth Stace, Director General of UK Steel,
said:
“Government needs to back British-made
steel now more than ever. The already
challenging demand environment is only
worsened by elevated energy prices. Steel
companies in the UK are footing electricity
bills of 60% more than our direct competitors
in Germany.
“Statistics show the stark reality of how UK
steel is suffering. British-made steel plays
a key role within supply security against
conflict and political sanctions. This is exactly
why we are asking Government to implement
its highly welcomed energy policy measures
by April 2024.”
24
bIZ4BIZ INSIGHT MAGAZINE | FEBRUARY 2024