Ministers warn British steel industry faces risk of collapse

Business ministers including business secretary Sajid David have written to European Commissioners to warn them that the steel industry in both Britain and Europe faces a significant risk of collapse – news sure to be concerning to steel reinforcement mesh suppliers and others in the industry.

According to the Daily Telegraph, the letter calls on the Commission to take strong action against the dangers of imported Chinese steel, as well as highlighting the need for anti-dumping measures to be introduced.

The letter continued, saying: “[The EU] cannot remain passive when rising job losses and steelworks closures show there is a significant and impending risk of collapse in the European steel sector.”

Ministers have also called for support to be given to energy-intensive industries like steel making, while also helping to develop new processes and technologies, while also giving the most efficient plants relief on carbon taxes.

This comes after director of trade organisation UK Steel Gareth Stace said that the UK’s steel rebar sector could face more job losses as a result of EU decisions to introduce low level duties for rebar imports from China.

He explained that the decision to publish these duties shows that bureaucrats in Brussels have yet to recognise the scale of the problem now facing the steel sector in Europe. China has now apparently taken over 45 per cent of the UK’s steel market. Just four years ago, it had no share of the market at all, so businesses in the industry should perhaps monitor the situation closely over the next few years so they can react accordingly.