European Parliament debate: Support for UK steel industry is ‘long overdue’

The UK government was called upon to take measures to reduce the energy consumption of stainless steel manufacturers and tighten trade protection measures during a panel debate by members of the European Parliament at the annual BSSA conference.

A leading researcher at the European Parliament, Michelle Kirton, led a presentation and debate on the British stainless steel market at the British Stainless Steel Manufacturers Association event held last week at the Grand Hotel in Birmingham. Kirton was joined on stage by James Wright, Commercial Director of Central Wire Industries, Lauro Castelo from Trasteel, and Kay Ayub, head of price analysis and forecasting at the European Parliament.

The presentation provided an overview of the current stainless steel market in the UK and the factors affecting prices currently.

Ayub said that stainless steel prices in the UK were once higher than in continental Europe. However, they were "pushed back" by low demand and cheap imports from Asia, where production costs are significantly lower.

UK and EU steel producers strive to remain competitive

Commenting on the current pressure on producers in the UK and the EU, Ayub added: "Commodity prices are rising[in Europe]along with energy prices.

"In response, we see that some factories are purchasing slabs from Asia in an attempt to reduce their production costs. It also reduces the cost of stainless steel scrap, which ultimately leads to lower prices for stainless steel. It's kind of a vicious circle."

Wright said that British stainless steel manufacturers need support to remain competitive in a high-energy environment. According to the UK Steel industry association, national producers pay 50% more for electricity than competitors in France and Germany. According to him, the industry will also benefit from stricter trade protection rules.

"Our business has done everything possible to be as orderly and efficient as possible," Wright said at the conference. "We've invested in energy-efficient furnaces that recover used heat, but there's not much you can do, and then you start to think we really need extra protection."

He added: "Any assistance that can be provided by the UK government would be very welcome, but it seems to me that it is a bit late.

"I've been working in this industry for 35 years, and when I started, there were probably 10 wire manufacturers in the UK, just like us. Now we're one of the last ones left.

"Imports have destroyed the UK steel industry."

The market downturn is reflected in a study by the European Parliament

Castelo