Steel Industry “Encouraged” by Kyle’s Vision, But Demands Action on Energy

Industry lobby group UK Steel says it is “encouraged” by the “clear future vision” set out by Business Secretary Peter Kyle, who has backed a move to electric arc furnaces (EAFs). However, the group immediately warned that this vision is impossible without government action on “lower power prices.”
Frank Aaskov of UK Steel stated that the industry needs a “stronger business environment.” This is a direct call for help, as UK steel producers have long complained that high energy costs make them uncompetitive against EU and global rivals.
This demand is now more critical than ever. The new EAFs that Kyle is backing are power-intensive, meaning that without a reduction in electricity prices, the new “green” steel plants could be even less competitive than the old blast furnaces.
Kyle, who is preparing a new steel strategy for December, acknowledged the “highly complex global environment” the industry faces. But his focus was on the EAF transition and the problem of global oversupply and tariffs.
UK Steel’s response makes it clear: the industry’s survival depends on more than just new furnaces. The government’s December strategy will be seen as a failure by the industry if it does not also include a concrete plan to tackle “lower power prices and robust trade policies.”