The latest episode of SteelCast features Martin Brunnock, Director of Communications at Tata Steel and Chair of UK Steel, as he discussed the strides made in shaping the UK government’s steel strategy.
With insights into recent developments, challenges, and collaborative efforts, the episode sheds light on the steel industry’s journey toward a sustainable future.
Earlier this month, the "Shaping the Steel Strategy" summit convened at Portcullis House. Organized by UK Steel, the event brought together government officials, industry leaders, and civil servants to align on policy priorities. Notable attendees included Johnny Reynolds, Secretary of State for DBT, and Jonathan Brash MP, Chair of the All-Party Parliamentary Group (APPG) on Steel.
The summit emphasized several critical areas:
- Energy Costs: UK energy prices remain significantly higher than those in Europe, the US, and China. Addressing this disparity is crucial for competitiveness.
- Carbon Border Adjustment Mechanism (CBAM): Alignment with Europe on CBAM is vital to protect UK steelmakers from cheap imports.
- Public Procurement Policies: Ensuring UK-produced steel is prioritised in government projects.
- Trade Measures: Tackling challenges posed by cheap imports to safeguard the domestic market.
- Industry Collaboration
"It’s really important for the industry to come together as one to identify what policies the government should prioritize." — Martin Brunnock
Unity within the steel sector was a central theme at the summit. Representatives from Tata Steel, British Steel, and other leading companies presented a unified front to advocate for policies that support the industry’s sustainability and growth. This collaborative approach aims to ensure the government’s forthcoming steel strategy reflects the sector’s needs.
Challenges ahead
Despite the progress, challenges remain. Energy costs in the UK are among the highest globally, and policy support will be critical for the industry’s transition to green steel. "Without supportive policies, the UK risks becoming less competitive than Europe and other markets," warned Martin.
Promising Developments
"Having Johnny Reynolds as keynote speaker and so many politicians in attendance is pretty notable."
The Labour government’s £2.5 billion Green Steel Fund signals a strong commitment to the industry. A draft steel strategy is expected by March 2025, offering a roadmap for investment and policy reforms.
Notable Advocates
Jonathan Brash, the newly appointed Chair of the APPG on Steel, has quickly become a prominent advocate for the industry. His energetic approach and recent visits to steel facilities have earned him praise from stakeholders. Additionally, long-standing supporters such as Stephen Kinnock, MP for Aberavon & Maesteg, continue to push for measures addressing cheap imports and public procurement.
Looking Ahead
"The steel strategy will be crucial in ensuring the UK’s steel industry remains competitive and sustainable." — Martin Brunnock
The industry’s optimism is tempered by the acknowledgment that significant work lies ahead. Beyond funding, legislative changes and policy implementation will be critical to achieving a sustainable future for UK steel.
Stay tuned for more updates as the steel strategy develops in early 2025.
For further insights into the steel industry’s journey, listen to the full episode of SteelCast on your favourite podcast platform or watch on YouTube.
The UK steel sector:
- Produces 5.6Mt of crude steel a year, equivalent to 70% of the UK’s annual requirement (annual demand of 7.6Mt in 2023, of which 40% was met by domestically produced steel)
- Employs 33,700 people directly in the UK and supports a further 42,000 in supply chains
- The median steel sector salary is £37,315, 26% higher than the UK national median and 35% higher than the regional median in Wales, Yorkshire, and Humberside, where its jobs are concentrated
- Directly contributes £1.8 billion to UK GVA and supports a further £2.4 billion
- Directly contributes £3.4 billion to the UK’s balance of trade 96% of steel used in construction and infrastructure in the UK is recovered and recycled to be used again and again.
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