The UK government introduced a bill to nationalize steel companies such as British Steel, owned by the Chinese company Jingye Group, if it is in the public interest, the UK Department for Business and Trade said on May 14.
The bill will have its first reading on May 14, followed by a second reading, expected in the near future, during which MPs will have their first opportunity to debate the bill and give their opinions.
“We strongly welcome the Prime Minister’s announcement to legislate for the nationalisation of British Steel. This provides vital certainty for the workforce, the company’s customers and the wider supply chain at a critical moment,” said Gareth Stace, Director General of UK Steel, a trade association representing the British steel industry. “Steel is a foundation industry and a recognised strategic national asset. Maintaining domestic production capability for British Steel’s products is essential not only for economic growth but also for our national security and resilience,” he added.
The government intervened at British Steel in April 2025 under the Steel Industry (Special Measures) Act to ensure uninterrupted production and avoid the closure of blast furnaces that would have disrupted supply chains and threatened thousands of jobs. Since then, officials have held discussions with British Steel’s owner to find a commercial solution but failed to reach an agreement that would deliver acceptable value for taxpayers, the government said.
“Whatever actions the UK government takes, it should fully consider the substantial investment of the Chinese enterprise in British Steel and its contributions to the UK economy and society, respect the will of the enterprise and market principles, and avoid abuse of administrative coercion, while actively seeking fair and proper solutions acceptable to both sides with the Chinese enterprise,” the spokesperson for China’s Ministry of Commerce said a statement on May 14.
“We hope the UK government will follow the principles of fairness, justice, and non-discrimination, think carefully before acting, make prudent decisions, effectively protect the legitimate rights and interests of Chinese enterprises, and maintain the hard-won positive atmosphere of China-UK economic and trade relations. China will closely monitor the development of the event and take strong measures to safeguard the legitimate rights and interests of Chinese enterprises.”
The UK government spokesperson, when contacted for comment by S&P Global Energy on May 14, said that they “remain committed to respecting the rights of businesses and we would only use the powers in the Bill where the public interest test has been met.”
Platts, part of S&P Global Energy, assessed Steel Hot Rolled Coil (HRC) DDP West Midlands UK GBP/Mt Wk May 7 at GBP695/mt, unchanged week over week.
Author: Annalisa Villa
