The UK could become increasingly reliant on imported steel unless it expands domestic recycling and production capacity, according to new research from the Energy and Climate Intelligence Unit (ECIU).
The analysis found the UK exports around eight million tonnes of scrap steel each year, representing about 75% of the scrap it generates. Much of this is processed overseas before finished steel products are potentially imported back into the UK.
At the same time, UK steel demand is projected to increase by 54%, from 9.1 million tonnes in 2025 to 14 million tonnes by 2050.
The growth is expected to be driven by housebuilding, offshore wind development, electricity network expansion and demand from automotive manufacturers for lower-carbon steel.
The report suggests the UK would need more than two additional Port Talbot-sized electric arc furnaces to meet future demand domestically and reduce reliance on imports.
Electric arc furnaces can use scrap steel as their main feedstock and produce steel with lower emissions than traditional blast furnace production when powered by low-carbon electricity.
The findings come as the future of the UK steel industry remains under scrutiny, including following the nationalisation of British Steel’s Scunthorpe operations.
The research warns that decisions made over the next two years could determine whether domestic producers are able to meet rising demand from 2028 onwards.
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