Sourcing steelwork

The UK’s ability to supply its own steel has diminished over recent decades, increasing the reliance on imports. NSC reports on where the nation’s steel comes from, what government intends to do and the implications.

Helping to create everything from commercial buildings to major infrastructure projects, steel is an essential material for the UK construction sector. But where does it come from?

Understanding where the UK sources its steel, how this has changed, and what it means for construction is critical at a time of economic uncertainty and industrial transition.

According to trade association UK Steel, the total demand for steel in the UK typically fluctuates between nine and 11 million tonnes per year, depending on economic conditions and construction activity.

As domestic crude steel production has significantly fallen in recent times (government statistics report that it currently stands at just under four million tonnes per annum), imports make up around 60% of steel used in the UK.

The UK’s reliance on imported steel is not new but has intensified. In the early 2000s, domestic production met a larger share of demand. However, factors such as plant closures, reduced investment, and high operating costs (UK steel producers must pay higher energy prices than their European competitors) have eroded capacity.

But where does the imported steel come from? Allowing for post-Brexit adjustments, the European Union (EU) remains the UK’s largest source, due to its proximity, established supply chains, and the UK’s alignment with EU standards.

Accounting for around 75% of imports, the key EU steel producing countries include Germany, France, Spain and the Benelux nations.

The remaining imports are primarily sourced from Asia, with key contributors being China, India, South Korea, Turkey and the UAE, while some specialist steel items are imported from Japan and the USA.

In order to redress the import imbalance, the Government recently unveiled its Steel Strategy (see article on opposite page), which sets a target for UK produced steel to meet 50% of domestic demand.

Alongside its Steel Strategy, the UK government has committed to supporting the nation’s steel sector, most notably by taking control of British Steel last year.

As the Chinese owners, Jingye, had signalled an intent to close the Scunthorpe steelworks, the government’s intervention has prevented the site’s two blast furnaces from closing.

The government is also supportive of the transition to EAF steelmaking technology, which could also help reduce the UK’s reliance on steel imports.

British Steel has plans to build two EAF’s at its Scunthorpe and Teesside sites, while Tata Steel is currently constructing a similar production facility at Port Talbot.

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Types of steel and their uses

Long products include beams and columns, reinforcement bar (rebar) and wire rod. They are used in construction, which is the largest consumer – by sector – of steel in the UK.

Barrett Steel, the UK’s largest steel stockholder, estimates that approximately 80% of its long products are sourced from the UK and the EU, with the remainder imported from countries such as Turkey, South Korea, the UAE and Brazil.

“All of our suppliers are quality audited, but sourcing steel from production sites close to home makes economic sense,” says Barrett Steel Chief Executive Guy Barrett.

“But with demand for EAF sections – which UK plants can’t yet produce – rising, imports remain vital.”

Flat steel accounts for a significant share of imports and includes sheet and plate steel as well as coated and galvanized products. They are used for cladding and roofing systems, automotive manufacturing, and appliances and industrial equipment. Much of this material is imported due to limited domestic production capacity.

Semi-finished products such as slabs and billets are often imported for further processing in UK mills.