Steel Strategy
Low Carbon math for your next project just changed
Today, The UK Government published the Steel Strategy and it’s a significant moment for the industry. It sets an ambitious target: 50% of the steel used in the UK should be made in the UK (up from the current 30%).
To get there, the government is introducing some of the most protective trade measures we’ve seen in decades - including slashing import quotas by 60% and doubling tariffs to 50% for anything over that limit.
But beyond the high-level politics of “national security” and “trade shields,” what does this actually mean for those of us in the world of Circular Steel and scrap/recycling?
Keep the Scrap
The strategy explicitly confirms that Electric Arc Furnaces (EAF) are the future of British steelmaking. With Tata’s transition at Port Talbot well underway, our domestic demand for scrap is about to skyrocket. Remember the only EAF in the country right now is in cardiff, at the 7 Steel UK facility.
Currently, the UK is a massive exporter of scrap. The strategy announces a cross-government working group (launching in May) specifically tasked with securing a “resilient and high-quality supply” of scrap for domestic furnaces.
We’ve known for a long time that scrap is a finite and well-used resource (remember this paper from last year?). If we are to hit that 50% domestic production target via EAFs, we simply cannot keep shipping our best “raw material” overseas. So expect to see some serious movement on export regulations or incentives to keep that high-grade scrap at home.
What about Reuse?
While the strategy is heavy on EAF and Recycling, it is still relatively quiet on steel reuse.
As I advocate through Circular Steel, the most carbon-efficient way to handle steel isn’t to melt it down, it’s to use it again in its current form.
While the strategy focuses on “green steel” production, the real “low-hanging fruit” for the construction industry is maintaining the value of existing structural sections. We need to ensure that the push for EAF capacity doesn’t cannibalise the stock that should be destined for direct reuse. Recycling is great, but efficient reuse of the best bits is even better.
Transition of Blast Furnaces
Importantly, and aligned to continually increasing steel demand, the strategy acknowledges that Blast Furnace (BF) production will continue for the immediate future. The government has stepped in at Scunthorpe (British Steel) to ensure these stay running while the industry transitions.
The Challenge: BFs are the source of “virgin” steel, which is often still required for specific high-grade applications that scrap-based EAFs can’t always hit (yet). The strategy mentions “practical research and innovation” to boost productivity (think carbon capture or hydrogen injection) and to try and stay within Net Zero limits.
Procurement and Supply Chains
With import quotas being slashed by 60% this summer, we are about to see a shift in procurement. By making imports more expensive and difficult, the government is forcing the hand of designers and contractors to look for UK-made steel. This push to home grown steel is slightly at odds with how some projects may have been hoping to deal with looming NZCBS limits, by purchasing low carbon EAF steel from the continent.
Given the UK EAFs aren’t online yet (Tata’s EAF isn’t expected until 2027/28), we could face a “supply gap.” Perhaps this will make Circular Steel look even more commercially attractive. If you can’t get new, low carbon EAF UK steel and you can’t afford imported steel, then do those refurbished sections in the yard start looking like a very sensible option?
The Steel Strategy attempts to reverse “decades of de-industrialisation.” For the circular economy, the focus on scrap is welcome, but we must remember to be a reuse nation as well as a recycling nation.
No doubt this will be a topic of discussion at the Circular Steel UK 2026 event on Wednesday 24th June. Grab a ticked now…