The UK’s largest steelmaker Tata Steel UK confirmed to S&P Global Commodity Insights July 1 that its blast furnace no. 4 at its Port Talbot site in Wales will continue to be operative until the end of September along with other iron and steelmaking assets as previously planned after the Unite union agreed to pause its industrial action.
At the end of June, Tata had said it would have been forced to pause or stop its hot end operations, including both blast furnaces, at Port Talbot this week if the strike went ahead. The spokesperson confirmed BF5 would cease operation this week, as planned.
The Unite union called for a unilateral strike from July 8 in protest at Tata’s plan to close the site’s BFs while it converts to an electric arc furnace to be commissioned in 2027.
Unite confirmed to Commodity Insights on July 1 that its current industrial action had been paused.
“The decision follows confirmation from Tata, arising from high level talks throughout the weekend, that it is prepared to enter into negotiations about future investment for its operations and not just redundancies, in South Wales, including at Port Talbot,” Unite told Commodity Insights.
“This is a significant development in the battle to protect jobs and the long-term future of steel making in South Wales,” Unite general secretary Sharon Graham said.
“Investment from Labour secured by Unite will be key to the future of the site,” she added, referring to a pledge by the opposition Labour party, which is expected to win this week’s general election and form the next UK government.
Tata representatives previously said that the shutting down of the BFs would go ahead no matter which party won the July 4 UK election.
Tata Steel UK produced 2.99 million mt of liquid steel in the financial year ended March 31, down 1% year on year, while deliveries stood at 2.80 million mt, down 5.1%. The UK steel sector produces 5.6 million mt/year of crude steel, around 70% of the UK’s annual demand of around 7.6 million mt.
Platts, part of S&P Global Commodity Insights, assessed the weekly UK hot-rolled coil price at GBP595/mt DDP West Midlands on June 27, down 7% since the start of 2024.
Annalisa Villa
