The UK government is being “forced to change plans” for its steel industry by a “highly complex global environment” of “chaos,” according to Business Secretary Peter Kyle. He cited Donald Trump’s trade levies and a “huge amount of steel” flooding markets from China as key reasons for a new strategy.
This new strategy, due in December, involves a major pivot for the state-controlled British Steel plant: a switch from blast furnaces to electric arc furnaces (EAFs). Kyle said he is “keen to see that transition happen” as a way to make the UK industry more resilient and sustainable.
These global pressures have already taken a heavy financial toll. Kyle confirmed that “hundreds of millions” from the government’s £2.5bn steel fund have been spent just to keep British Steel and Liberty Steel running, victims of this volatile market.
Industry group UK Steel echoed the minister’s concerns, demanding “robust trade policies” to shield UK producers from this exact problem. They also called for lower energy prices to improve competitiveness.
While the EAF plan is a response to this global chaos, it creates its own domestic problems. The move threatens thousands of UK jobs and the nation’s “primary steelmaking” capacity. The government is now caught between navigating a hostile global market and managing a painful transition at home.