While the UK steel industry's output has fallen to its lowest levels since the financial crisis, the data reveals a sector in a state of dramatic transition, grappling with job losses and a green revolution as it shifts towards recycling-based production.
Key Takeaways
- In 2022, UK crude steel production totalled 5.96 million tonnes, a decrease of 17.1% compared to 2021
- UK steel production capacity stood at approximately 9.5 million tonnes per annum in 2023, with primary production focused on electric arc furnaces
- In Q4 2022, UK steel production was 1.4 million tonnes, marking the lowest quarterly output since 2009
- The UK steel industry employed 31,900 people directly in 2022, down 4% from 2021
- In 2023, 42% of UK steel workers were aged over 50, indicating skills ageing
- British Steel employed 3,200 at Scunthorpe before 2023 redundancies of 2,000
- In 2022, UK steel exports were valued at £2.8 billion, down 15% from 2021
- UK imported 5.2 million tonnes of steel products in 2022, 80% from EU and Asia
- In 2023, UK steel exports to EU accounted for 55% of total volume at 1.8 million tonnes
- UK steel industry turnover was £12.5 billion in 2022, down 10% from 2021
- Tata Steel UK reported £1.1 billion losses in 2022 due to energy costs
- British Steel turnover £1.4 billion in 2022, with £200m EBITDA pre-closure
- In 2022, UK steel Scope 1+2 emissions were 7.2 MtCO2e, down 5% from 2021
- Tata Steel UK emitted 4.1 MtCO2 from blast furnaces in 2022
- UK steel recycling rate reached 88% in 2023, highest in Europe
Britain's steel industry is shrinking amid a costly and job-heavy green transition.
Employment and Labour
- The UK steel industry employed 31,900 people directly in 2022, down 4% from 2021
- In 2023, 42% of UK steel workers were aged over 50, indicating skills ageing
- British Steel employed 3,200 at Scunthorpe before 2023 redundancies of 2,000
- Tata Steel Port Talbot workforce was 8,000 in 2023, facing 3,000 job losses in green transition
- UK steel industry's female workforce participation was 12% in 2022
- Average UK steelworker salary was £42,500 in 2022, 25% above national average
- In 2021, 15% of UK steel jobs were apprenticeships, totalling 4,800 trainees
- Liberty Steel UK employed 5,000 across sites in 2023
- UK steel supply chain supports 50,000 indirect jobs in 2022
- Post-closure, Scunthorpe steel jobs fell from 2,700 to 800 in 2024
- 28% of UK steel engineers hold PhDs in 2023
- Tata Steel UK training investment was £10m in 2022 for 2,000 workers
- UK steel absenteeism rate was 5.2% in 2022 due to health issues
- Celsa Steel UK employs 1,100 staff across Wales sites in 2023
- 60% of UK steel jobs require STEM qualifications in 2022
- Union membership in UK steel was 75% in 2023, highest in manufacturing
- Average steelworker overtime hours were 8 per week in 2022
- Sheffield Forgemasters employed 650 specialist steel workers pre-acquisition
- UK steel diversity: 8% BAME workforce in 2023, up from 5% in 2019
- Port Talbot steel jobs supported 10,000 in local economy in 2022
- 3,500 steel jobs lost industry-wide since 2015
- UK steel R&D staff numbered 1,200 in 2023
- Average tenure for UK steel workers is 15 years in 2022
- British Steel Teesside employs 450 in beam production
- UK steel health & safety incident rate was 1.2 per 100 workers in 2022
- 20% of UK steel workforce is contracted via agencies in 2023
Employment and Labour Interpretation
The UK steel industry is an aging, highly-skilled, and well-compensated workforce, but its muscle is being eroded by a worrying exodus of jobs and a painful green transition, leaving its future looking less than forged in fire.
Environmental Impact
- In 2022, UK steel Scope 1+2 emissions were 7.2 MtCO2e, down 5% from 2021
- Tata Steel UK emitted 4.1 MtCO2 from blast furnaces in 2022
- UK steel recycling rate reached 88% in 2023, highest in Europe
- Energy intensity of UK steel production 14.5 GJ/tonne crude steel in 2022
- British Steel Scunthorpe water usage 2.5 billion litres/year pre-closure
- UK steel industry's CO2 per tonne fell 40% since 1990 to 1.5 tCO2/t in EAF
- In 2023, 75% of UK steel made from recycled scrap
- Tata Port Talbot hydrogen-ready DRI pilot captures 90% CO2
- UK steel waste recycling rate 95% in 2022
- Electricity decarbonisation could cut UK steel emissions 80% by 2030
- Celsa UK scrap melt emissions 0.4 tCO2/tonne steel in 2023
- UK steel ETS compliance costs £400m in 2022
- Biodiversity net gain at steel sites: 20% improvement by 2025 target
- Liberty Steel EAF emissions intensity 0.35 tCO2/t in 2023
- UK steel H2 production trial: 50,000 tonnes green steel in 2024 pilot
- SOX emissions from UK steel fell 70% since 2010 to 5,000 tonnes/year
- Water recycling in UK steel plants 85% in 2022
- UK steel CCUS potential 5 MtCO2 capture annually by 2030
- NOx emissions per tonne steel 0.2 kg in modern EAFs 2023
- Sheffield steel sites remediated 100 hectares brownfield in 2022
- UK steel renewable energy use 25% of total in 2023, up from 15% 2020
- Particle emissions from steel down 50% to 200 tonnes/year 2022
- Green steel premium willingness £100/tonne by customers 2023 survey
- UK steel landfill waste 1% of total output in 2022
- EAF route avoids 1.4 tCO2/t vs BF in UK context 2023
- Port Talbot transition plan: zero carbon by 2027 target
Environmental Impact Interpretation
While the UK steel industry is still breathing industrial fire with 7.2 Mt of emissions, it's also quietly turning into a champion of circularity, slashing its carbon diet per tonne by 40% since 1990 and now recycling 88% of its metal, all while plotting a high-stakes escape from its own smokestacks through hydrogen, carbon capture, and a flood of clean electricity.
Financial Performance
- UK steel industry turnover was £12.5 billion in 2022, down 10% from 2021
- Tata Steel UK reported £1.1 billion losses in 2022 due to energy costs
- British Steel turnover £1.4 billion in 2022, with £200m EBITDA pre-closure
- UK steel sector investment in green tech £1.2 billion pledged 2021-2023
- Average UK steel firm profitability margin was 2.5% in 2022
- Liberty Steel UK debt restructuring £500m in 2023
- UK steel R&D spend £250m in 2022, 2% of turnover
- Energy costs for UK steel rose 300% to £2.5bn in 2022
- Tata Steel Port Talbot received £500m government grant in 2023
- UK steel exports revenue per tonne averaged £600 in 2022
- Celsa Steel UK turnover £450m in 2022, EBITDA £50m
- Industry-wide UK steel subsidies totalled £2.3bn 2016-2023
- Average steel price index UK HRC £800/tonne in 2023 avg
- British Steel capital expenditure £100m in 2022 on maintenance
- UK steel tax contributions £1.8bn in corporation and payroll taxes 2022
- Liberty Steel sales £2bn group-wide, UK £800m in 2023
- Scrap input costs for UK EAF £350/tonne in 2022 avg
- UK steel pension deficit £4bn industry-wide in 2023
- Government energy support to steel £300m in 2022-23
- Sheffield steel firms revenue £1.5bn combined in 2022
- UK steel carbon price exposure £150/tonne CO2 in 2023
- Tata Steel UK capex £300m annually pre-transition
- Industry debt levels averaged 40% debt-to-equity in 2022
- Rebar price UK £550/tonne average 2023
- UK steel multiplier effect: £2.5 GVA per £1 turnover in 2022
- Electricity price for steel £150/MWh avg 2022 vs £40 pre-crisis
- UK steel sector contributed 1.2% to manufacturing GVA in 2022
Financial Performance Interpretation
The UK steel industry, a vital but feverish patient, shows its weakened pulse in a £12.5 billion turnover while its heart—a green transition backed by billions in pledges and grants—struggles to beat against the arrhythmia of crippling energy costs, razor-thin margins, and a mountain of historic debt.
Production and Capacity
- In 2022, UK crude steel production totalled 5.96 million tonnes, a decrease of 17.1% compared to 2021
- UK steel production capacity stood at approximately 9.5 million tonnes per annum in 2023, with primary production focused on electric arc furnaces
- In Q4 2022, UK steel production was 1.4 million tonnes, marking the lowest quarterly output since 2009
- British Steel's Scunthorpe plant produced 2.8 million tonnes of steel in 2022 before its blast furnace closure
- UK secondary steel production via electric arc furnaces accounted for 72% of total output in 2023
- In 2021, UK steel slab production reached 6.2 million tonnes, up 20% from 2020
- Port Talbot's steel production capacity is 5 million tonnes annually, primarily hot-rolled coil
- UK steel production per capita was 89 kg in 2022, down from 100 kg in 2019
- In 2023, UK steel billet production was 1.1 million tonnes
- Celsa Steel UK's Cardiff plant has a capacity of 1.2 million tonnes of reinforcing bar annually
- UK steel rail production totalled 120,000 tonnes in 2022 from British Steel's Scunthorpe site
- In 2020, pandemic-low UK steel production was 7.04 million tonnes
- Liberty Steel's Rotherham plant produces 1.3 million tonnes of special long products yearly
- UK heavy plate production was 450,000 tonnes in 2022
- Tata Steel UK's total production capacity pre-transition was 10 million tonnes
- In H1 2023, UK steel production averaged 1.45 million tonnes per quarter
- Sheffield's steel production focuses on 500,000 tonnes of special steels annually
- UK steel wire rod production was 300,000 tonnes in 2021
- British Steel's Skinningrove plant produces 100,000 tonnes of sections yearly
- In 2019 peak, UK produced 7.25 million tonnes of crude steel
- UK stainless steel production was 140,000 tonnes in 2022
- Tata Steel's Shotton site produces 0.5 million tonnes of coated products annually
- UK structural steel section production totalled 800,000 tonnes in 2023
- In 2022, energy use per tonne of UK steel was 15 GJ for EAF route
- UK steel casting output was 250,000 tonnes in 2021
- Liberty Steel Rotherham's EAF capacity is 1.5 million tonnes post-upgrade
- UK merchant bar production reached 400,000 tonnes in 2022
- In 2023, UK steel pipe production was 150,000 tonnes
- Total UK steelmaking capacity post-Blast Furnace closures is 6 million tonnes EAF-based
- UK forged steel products output was 50,000 tonnes in 2022
Production and Capacity Interpretation
The UK steel industry is currently trying to build a future with an electric arc while unplugging its past, a transition reflected in declining production as it painfully switches from fiery blast furnaces to the quieter hum of recycled scrap.
Trade and Markets
- In 2022, UK steel exports were valued at £2.8 billion, down 15% from 2021
- UK imported 5.2 million tonnes of steel products in 2022, 80% from EU and Asia
- In 2023, UK steel exports to EU accounted for 55% of total volume at 1.8 million tonnes
- Tata Steel UK exported 1.5 million tonnes of flat products in 2022
- UK steel trade deficit was £6.1 billion in 2022
- In Q1 2023, UK steel imports from China were 450,000 tonnes
- British Steel exported 900,000 tonnes of long products to 50 countries in 2022
- UK steel rebar exports totalled 200,000 tonnes in 2023, mainly to Middle East
- In 2021, UK exported £3.2 billion worth of steel to USA under trade deal
- Liberty Steel exports 40% of production, 600,000 tonnes to Europe in 2022
- UK steel import quotas under WTO filled 85% in 2023
- In 2022, Turkey supplied 15% of UK steel imports at 780,000 tonnes
- UK steel exports to India grew 25% to £150m in 2023
- Semi-finished steel imports to UK were 2.1 million tonnes in 2022
- UK rejected 12,000 tonnes of illegal steel imports in 2023 via border checks
- In 2023, UK steel pipe exports reached £200m, 20% to oil & gas sector
- EU-UK steel trade volume was 4.5 million tonnes in 2022 post-Brexit
- UK stainless steel imports totalled 450,000 tonnes in 2022
- British Steel's rail exports to Network Rail partners abroad 50,000 tonnes/year
- UK steel trade with USA: exports £400m, imports £1.2bn in 2023
- In H2 2022, UK steel scrap exports were 1.2 million tonnes to Turkey
- UK automotive steel exports 300,000 tonnes in 2022
- Import of coated steel products to UK was 800,000 tonnes in 2023
- UK steel exports growth to Africa 15% YoY to 100,000 tonnes in 2023
- 2022 UK steel trade balance worsened by £1bn due to energy crisis
- Celsa UK's rebar exports to Ireland 150,000 tonnes annually
Trade and Markets Interpretation
While the UK steel industry shows flashes of global hustle—from rails crossing continents to rebars fortifying the Middle East—its towering trade deficit starkly reveals a nation that now imports its industrial backbone far more readily than it forges its own.
Sources & References
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