UK steel industry needs urgent government support

Thorworld Industries is once again calling on the British government to support what it describes as the “underfunded and abandoned” UK steel industry.

Back in July 2021, Thorworld reported that the price of untreated UK steel had risen 70% since January. Now, reporting five months later, Thorworld continues to see less growth, and while they have managed to meet customer expectations and plan their operations accordingly, other businesses will not be as successful.

The UK produces significantly less steel than its foreign counterparts, and its pricing policy has historically alienated businesses even before prices have risen. Earlier this month, British Steel announced a price increase of £ 30 per tonne, and many businesses will be forced to buy shares earlier for fear of further price increases.

Thorworld Industries Managing Director John Meal commented: “The UK steel industry remains unchanged as it did over the summer and we see nothing to indicate that the UK steel industry is improving anytime soon. Companies such as ours are forced to balance early on in order to obtain inventory for fear of further price increases and to ensure that lead times are kept to a minimum. ”

"The British steel industry remains unchanged as it did over the summer, and we saw nothing to suggest that British steel is going to improve anytime soon."
John Meal, Managing Director, Thorworld Industries

To further highlight the concerns of UK suppliers, HS2 had to rely on steel rebar from a foreign source after claiming there were no suitable suppliers in the UK. The taxpayer-funded project could benefit the UK economy, but it had to focus overseas to meet its own deadline.

In November, Darren Jones, Chairman of the Business, Energy and Industry Strategy Committee, commented on the importance of British steel and the need to support it. He said: “Steel is a national strategic asset, an industry foundation and a sector that the UK cannot afford to lose. There is an urgent need for government support for the steel industry on longstanding issues, including energy costs and better use of government procurement to support the UK steel industry. ”

“There is an urgent need for government support for the steel industry on longstanding issues, including energy costs and better use of government procurement to support the UK steel industry,” - Darren Jones, Chairman of the Business, Energy and Industry Strategy Committee.

Steel prices have undoubtedly increased as a result of congestion in ports, a shortage of drivers and rising energy prices. Thorworld Industries is worried about the slowness in addressing these issues, as the longer it goes on, the more business it does.

Miele concluded: “We understand that rising energy prices and logistics disruptions played a role in sky-high steel prices, but the bottom line is that back in July, the price of steel was much higher than it was in just a year. back. The industry is still underfunded and ignored - investments are urgently needed to revitalize the industry. "