UK

Crude Steel Production

UK crude steel production fell between 1997 and 2002 before stabilising at around 13-14 million tonnes per year over 2003-2008. As elsewhere recession led to production being cut back sharply in the later half of 2008, reaching a low point in December before starting a steady recovery through 2009. Although the export-orientated Teesside plant was mothballed in February 2010, UK total crude steel production in 2010 was down less than 4% on the 2009 level. Excluding Teesside tonnage, to allow a like-for-like comparison, shows that UK production in 2010 was 25% higher than in 2009 but remained 11% below the comparable 2008 level. 2011 saw UK production down 2% on 2010, although up a modest 1% after adjusting for early 2010 Teesside output. Total production in 2011 remained 30% below the 2008 level, with the decline excluding Teesside are more modest 10%. Steelmaking will recommence at Teesside early in 2012.

Steel Demand

UK demand for steel fell by more than domestic production in 2009 as imports fell more sharply than either exports or domestic deliveries. Quarterly demand reached a low point in the first quarter of 2009, while demand in the first quarter of 2010 had risen by 40% on that low. There was a further increase in demand levels in Quarter 2 before the holiday period affected Quarter 3 saw demand levels drop back slightly. Quarter 4 saw a further slight deterioration with delivery levels in snow affected December noticeably weak after relatively good levels in October and November. UK demand in 2010 was 27% higher than in 2009 with import share returning to similar levels as in 2008. 2011 started strongly with Quarter 1 demand at it highest level since the onset of the recession. Quarter 2 saw demand fade slightly, largely due to a weak April caused by the close proximity of Easter and Royal Wedding holidays and component shortages at the UK plants of Japanese carmakers following the natural disasters there in March. With demand holding relatively steady in Quarter 3, despite the impact of summer holidays, UK Demand to September was 5% higher than over Q1-3 2010.

Trade in Steel

Despite UK import and export levels being relatively high in relation to domestic production and demand levels the UK was a net exporter of steel over 2007-2009. With the export orientated Teesside plant mothballed for the majority of 2010 the UK became a small net importer of steel last year.

Below we show the geographical split of UK steel exports and imports over 2009 and 2010.

If you want to know more about the UK steel market, or UK exports and imports of steel and steelmaking raw materials please contact or use our NEW on-line Trade Enquiry System.