European Parliament debate: Protecting the UK steel industry
Speech by members of the European Parliament At the panel discussion on the carbon steel market at the UK Metals Expo, the debate on the sustainability of domestic steel production in the face of falling demand and rising imports dominated.
The benefits of enhanced trade protection measures to protect domestic steel producers, as well as access to diverse sources of steel supplies for UK end users, were discussed at a panel hosted by Kai Ayub, head of the European Parliament's Price Analysis and Forecasts Department.
At the annual Expo event, UK Steel CEO Gareth Stace, Godfrey Watt, President of the International Steel Manufacturers Association (ISTA), Nathan Lawrence, Commercial Director of Tata Steel in the UK, and Tom McDougall, Commercial Director of All Steels Trading, addressed a large audience.
Asked about the current level of steel demand in the UK market, Lawrence said: "It feels like we've been in a tough spot since mid-2022. However, people should not be surprised that demand is weak, given the level of geopolitical uncertainty and high interest rates."
A real-time survey conducted by MEPs to assess the sentiments of participants in the carbon steel debate. The results showed that 58% of respondents expect stable demand for steel over the next three to six months. Only 15% expected a further decline, while 27% expected an increase.
Trade protection: the cost of protecting British steel producers
However, the focus of the discussion was on the extent to which imports should be allowed to meet UK steel demand. The UK Government recently completed consultations on the future of its existing import protection measures. The current measures expire in June next year. The UK government is also providing increasing support to domestic steel producers. Last month, the company assumed responsibility for the operations of Liberty Steel UK's specialty steels division in Stockbridge, South Yorkshire, after the business was placed into administration. The Jinye Group's operations, owned by British Steel in Scunthorpe, also remain under government control.
Against this uncertain background for the UK steel sector, McDougall argued that the UK's steel-consuming industries needed to maintain access to competitive steel prices in order to remain competitive on their own. He said: "From the point of view of importers, competitive pricing is the most important thing. The level of demand is decreasing, and production outside the UK is becoming