Steel industry in the UK - statistics & facts
The history of the British steel industry dates back to the 17th century when small-scale steel production was established. Until the 20th century, Britain emerged as a global leader in steel production, owing to the industrial revaluation initiated in the country and the start of large-scale steel production. However, the country's steel industry has been experiencing a decline in production capacity and dominance in the global market. At present, other steel-producing countries, such as China, dominate the global steel market.
In 2022, nearly 1.9 billion metric tons of crude steel were produced worldwide, and just 5.96 million metric tons were manufactured by the United Kingdom. That year, China’s Baowu Group was the largest crude steel producer worldwide, with an output level of 131.8 million metric tons. Baouwu Group’s revenue reached over one trillion yuan, which was approximately 121.4 billion British pounds, with a conversion rate of 0.11. In comparison, the UK’s one of the largest steel producers, Tata Steel UK, generated 3.13 billion British pounds in revenue.
Regarding exports, some 3.4 million metric tons of finished and semi-finished steel were exported from the UK to other countries. One of the UK's most important exporting products, long steel, was exported almost the same as the previous year, amounting to one million metric tons.
Recently, there were a lot of challenges in the British steel sector, but the biggest one was Brexit. The British government made temporary tariff rules right after Brexit until 2022 in order to support the steel industry and encourage more research and development projects. However, in 2022, the global and British steel industry encountered numerous obstacles, and the steel safeguards were extended. The UK's steel sector would be protected from heavy flows of foreign competitors' steel until June 2026, when the safeguards will again expire. From 2026, the UK industry or government will have to apply for new measures to support the British steel industry.
Where does the British steel industry stand in the global market?
The UK's crude steel production hit its lowest point in 2022. Numerous issues impacted the market, but the primary one was the elevated inflation rate in the country, which resulted in a decrease in demand for steel. The coronavirus outbreak, the Russian-Ukrainian war, and the resulting energy crisis have only served to exacerbate the economic slump.In 2022, nearly 1.9 billion metric tons of crude steel were produced worldwide, and just 5.96 million metric tons were manufactured by the United Kingdom. That year, China’s Baowu Group was the largest crude steel producer worldwide, with an output level of 131.8 million metric tons. Baouwu Group’s revenue reached over one trillion yuan, which was approximately 121.4 billion British pounds, with a conversion rate of 0.11. In comparison, the UK’s one of the largest steel producers, Tata Steel UK, generated 3.13 billion British pounds in revenue.
Steel trade in the UK
British steel industry relies mostly on imports to meet domestic demand. As of 2022, the import levels of finished and semi-finished steel amounted to 5.7 million metric tons, a 13 percent decrease year-on-year. Moreover, imports of an important intermediate good for steel making, pig iron, also decreased that year to 25,000 metric tons from 38,000 metric tons. The main exporting countries of iron and steel products to the UK were Germany and Spain, both exporting above 500 million metric tons of such products.Regarding exports, some 3.4 million metric tons of finished and semi-finished steel were exported from the UK to other countries. One of the UK's most important exporting products, long steel, was exported almost the same as the previous year, amounting to one million metric tons.
Recently, there were a lot of challenges in the British steel sector, but the biggest one was Brexit. The British government made temporary tariff rules right after Brexit until 2022 in order to support the steel industry and encourage more research and development projects. However, in 2022, the global and British steel industry encountered numerous obstacles, and the steel safeguards were extended. The UK's steel sector would be protected from heavy flows of foreign competitors' steel until June 2026, when the safeguards will again expire. From 2026, the UK industry or government will have to apply for new measures to support the British steel industry.
