Synopsis:
The UK government has released its latest report on the purchase of UK-made steel and an estimate of the steel required for the next ten years. The report highlights a future demand of eight million metric tons of steel for government projects and showcases an increase in the use of domestically produced steel, with a total value of £299m in the past year.
Article:
In a significant move towards transparency and forward planning, the UK government has published its most recent report on the procurement of UK-made steel, alongside a projection of the steel demand for the coming decade. The report unveils a staggering future requirement of eight million metric tons of steel, earmarked for various government projects over the next ten years.
The data reveals that the UK is making steady progress in actively considering the purchase of domestically produced steel. This shift in focus has resulted in a year-on-year increase in UK steel companies supplying major infrastructure projects, with a total value of £299m. This development is a testament to the government's commitment to supporting the domestic steel industry and ensuring that UK-made steel plays a vital role in the nation's growth and development.
Transport projects emerged as the biggest purchasers of steel over the last year, with major rail and highway contracts featuring prominently. This trend can be attributed to the positive and proactive engagement between the Department for Transport, UK Steel, and UK steel producers over the past year. Their collaborative efforts have helped raise awareness of the readiness and capability of the domestic steel industry to contribute to major projects, thereby strengthening the case for using UK-made steel. Despite the encouraging progress, there is still room for improvement in the procurement of UK-made steel. The report highlights that approximately £15m worth of steel orders, which could have been purchased from UK sources, were ultimately procured by contractors from abroad. This practice deprives the UK economy of the benefits of domestic procurement, such as job creation, skills development, and the growth of local supply chains.
UK Steel and the wider industry have expressed their readiness to work closely with the government and other stakeholders to realize the significant opportunities that lie ahead. One such opportunity is the supply of six million metric tons of steel required for offshore wind projects over the coming decade. By harnessing the potential of UK steelmakers to meet this demand, the government can not only support the growth of the domestic steel industry but also contribute to the nation's green energy transition.
Gareth Stace, the director general of UK Steel, welcomed the government's commitment to the steel industry and praised the publication of the new steel public procurement data. He emphasized the importance of seeing public projects increasingly made with British-made steel and commended the improvements in forecasting future demand and capturing better origin data for steel.
Stace also highlighted the need for continued partnership between the government and UK steelmakers to ensure that the domestic industry is given ample opportunity to demonstrate its capability and capacity to support the nation's infrastructure development. From new hospitals and schools to defense purposes, UK-made steel has the potential to form the backbone of the country's growth and prosperity.
Conclusion:
The UK government's latest report on the purchase of UK-made steel and the projection of steel demand for the next decade marks a significant step towards supporting the domestic steel industry. The forecast of eight million metric tons of steel required for government projects presents a tremendous opportunity for UK steelmakers to showcase their expertise and contribute to the nation's development. While progress has been made in increasing the use of domestically produced steel, there is still work to be done to ensure that UK steelmakers are given every opportunity to demonstrate their capability and capacity.
Source: STEELGURU
|
