Bold new rules to encourage the use of British Steel are on the horizon. They could have a massive impact on various industries. However, there are also a number of concerns. We want to have a closer look here, then if you want to order products from the best ERW steel tube supplier in the West Midlands, you can trust us.
The headline
One of the main goals in the new UK Steel Strategy is to push the use of British steel. The aim is to boost it from 30% to 40-50%. This would be a seismic shift, moving away from foreign imports and embracing high quality home-grown production.
A key thing here will be a change in how the Government approaches projects. They will encourage using British steel wherever it is reasonable to do so. This will improve security and reduce the risk of supply disruption and price volatility.
The reforms are getting a lot of support. Crucially, there is an opportunity to increase the sale of British steel by hundreds of millions. This would be huge for businesses and steelworkers. Order from us if you want quality tubing from the best ERW steel tube supplier in the West Midlands.
A huge opportunity
The major opportunity is the chance to boost the use of low-carbon steel. The UK is in a great position to do this, particularly with high quality electric arc furnaces. They can reclaim millions of tonnes of scrap steel. This is more sustainable and massively reduces carbon emissions.
Risks
However, the steel industry has also given a number of warnings. Crucially, they are urging the Government to act on energy prices. The UK is currently at a massive disadvantage because of high bills. In fact, it costs businesses as much as 77% more than companies in parts of Europe, including France and Germany.
The steel industry is recommending a new mechanism to help balance prices. This would provide Government subsidies when energy prices are high, but allow businesses to pay back the difference when prices are lower.
In addition, the industry has warned about the impact of changes on the way in July. As part of the reforms, the Government is considering lowering import quotas by 60% and imposing 50% tariffs on imports. Industry bodies are warning this could make cost pressure worse and compromise the viability of projects. Luckily, in positive news, Government ministers have agreed to discuss the matter and consider what to do.
A renowned ERW steel tube supplier in the West Midlands
The British Steel industry is on the cusp of a huge change that could have a massive impact for decades to come. It will be interesting to see what happens, particularly in response to concerns from industrial bodies.
If you need quality tubing, you can rely on us. Union Steel Tubes has decades of experience and great working relationships with numerous businesses. We’ve got a reputation for reliability, short lead times, and flexibility, particularly when it comes to tube shapes, sizes, and specs.
So, if you want to work with an ERW steel tube supplier in the West Midlands who can adapt to your needs and maximise value, speak to us.
