UK producer 7 Steel is calling for policy support for the sector, days after Eluned Morgan, First Minister of the Welsh Government, met with UK policymakers, Kallanish reports.
In a published statement, the company welcomes the Welsh government’s call for urgent action to support domestic steelmaking. It notes that domestic steelmakers “continue to face global overcapacity, volatile trading conditions, and significantly higher industrial electricity costs.”
“To secure long-term competitiveness, we need continued trade protection and greater stability in energy pricing, alongside clear commitments in the forthcoming UK Steel Strategy,” it adds. “That means prioritising trade protection beyond June of this year and providing stability in energy pricing to give domestic steelmakers the protection and support needed for long-term security. These are things we are hopeful of seeing in the highly anticipated UK Steel Strategy.”
Chief executive Carles Rovira says: “We’re pleased to see the First Minister of the Llywodraeth Cymru/Welsh Government championing our industry, particularly at such a critical time for all steelmakers. The call for greater certainty, support and clarity is precisely what we need, both to protect our industry as it stands today, but also to strengthen it for the future through continued investment in our processes and communities.”
Earlier last week, Morgan noted in a written statement that the UK Steel Strategy is now likely due to be published in March. “The Welsh Government is calling for the strategy to be afforded the absolute top priority that it deserves, and that publication is made as a matter of utmost urgency. Industry needs clarity, and our steel workforce needs transparency and confidence.”
She also called for the UK government to work with the EU and US to conclude trade agreements with “our major partners” to protect the domestic industry against “potential dumping”.
“EU trade measures have the potential to have drastic consequences for the Welsh steel sector at a time when it is already under immense trading pressure due to US tariffs and global overcapacity. The EU is our closest and strongest trading partner on steel, and we have been very clear with the UK Government that we urgently need to see it make a strong case for the EU to preserve our existing arrangements, especially at a time when our sector is transitioning to net zero,” she says.
“We need the UK government to agree and implement the tariff free quota for UK steel into the US as agreed under the UK-US economic prosperity deal, whilst considering the unique transitioning needs of the Welsh steel sector,” she adds.
