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Government increases steel requirement forecast

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Newly published statistics from the UK government show that an estimated 7.6 million tonnes of steel will be needed for its public infrastructure projects over the next decade. This total is up from last year’s forecast of 5 million tonnes.

In 2019-20 at least £108M of the reported £148M of steel purchased by the government was sourced from UK producers.

Projects that will need steel include HS2, which will require an estimated 1.3 million tonnes, and Network Rail’s track renewals programme that could need an estimated 1 million tonnes.

The government wants to promote the participation of local steel and fabrication suppliers in forthcoming major public contracts. To this end, it has reconstituted the UK Steel Council whose members include the UK steel manufacturers, government departments and the British Constructional Steelwork Association (BCSA).

The healthcare sector is another area that is forecast to require substantial amounts of steel in the coming years.

“We recently held an initial meeting with the Supplier Markets Team for the New Hospital Programme for the National Health Service,” said BCSA Chief Executive Officer Dr David Moore.

“Their Health and Infrastructure Plan includes plans for 48 new and updated hospitals to be built by 2030.”

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