British Steel, the UK's only integrated long steel producer, told customers it would not deliver until December due to production problems.
When the British manufacturer first experienced problems a month ago, there was talk of that the problem was caused by a shipment of imported coke, causing the company to switch from two blast furnaces to one.
The plant recently closed its coke ovens and has since imported coke from an unnamed supplier in Indonesia. The company is taking "decisive action to minimize the potential impact on customer orders caused by temporary production issues," British Steel said in a statement.
Sources suggest British Steel may import blooms from China to feed rolling lines. if problems with furnaces persist. The company's top managers are currently in Beijing.
Some traders said delivery problems could cause tension in the market, but a number of buyers said supply from European manufacturers was enough to offset the supply shortage.
