Contractors fear cost increases from Government Steel Strategy

Steelwork contractors are worried the Government’s Steel Strategy, aimed at curbing imports and protecting UK steel production, could result in higher costs across construction.

The recently unveiled plan sets a target for UK produced steel to meet 50% of domestic demand, up from the current 30% figure.

From July, overall quota levels for steel imports will be significantly reduced by 60% compared to current arrangements, and steel coming into the UK above these levels will be subject to a 50% tariff.

Steelwork contractors are concerned that higher steel costs will put businesses, already suffering from extortionate and turbulent energy costs, under even greater pressure, ultimately leading to job losses across the constructional and fabrication sectors.

Jonathan Clemens, Chief Executive of the British Constructional Steelwork Association, said: “For all the rhetoric about sovereign capability and backing British industry, this strategy will make essential products more expensive for the downstream businesses that actually turn steel into buildings, bridges and infrastructure.

“The strategy accepts that imports will remain vital because the UK can’t supply every product the market needs, such as EAF fabricated sections.

“The result will be higher costs across construction, including projects commissioned by the Government itself, while also making steel a less attractive option in the very sector where its use should be encouraged as part of efficient and low-carbon building.”