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Welsh Government calls for immediate policy support for UK steel sector

Welsh Government calls for immediate policy support for UK steel sector

Welsh First Minister Eluned Morgan has called on the UK Government to take immediate policy action to protect the country's steel industry following discussions with UK Prime Minister Keir Starmer.

Morgan stressed that steel remains a core industry, underpinning construction, infrastructure, manufacturing, transport, utilities and consumer goods. With Wales accounting for a large share of the UK's steelmaking capacity, she said strong national policy support was important as the sector undergoes structural transformation, including Tata Steel's move into electric arc furnace production and ongoing developments at 7 Steel.

Trade uncertainty and energy costs remain key challenges

According to the government Wales, the UK steel sector continues to face increasing pressure from high energy prices, persistent global overcapacity and widening trade barriers.

Officials have warned that uncertainty surrounding international trade policy, particularly potential changes to EU trade measures, poses significant risks given the EU's position as the UK steel industry's largest trading partner.

Wales has therefore called on London to protect existing steel trade agreements between the UK and the EU during the transition to net-zero steel production.

Safeguards and access to the US market in focus

Welsh authorities also stressed the need for robust replacement measures

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