UK Steel Market Size, Share, Trends, Growth Analysis and Forecasts 2030

Key Findings

• The UK steel market is expected to reach a valuation of USD 14.6 billion by 2031, growing at a CAGR of 4.3% from 2025.

• The country produces approximately 7 million metric tons of crude steel annually, with over 95% of production using electric arc furnace (EAF) and basic oxygen furnace (BOF) methods.

• The construction and infrastructure segment consumes more than 45% of total steel in the UK, followed by automotive and machinery.

• Rising domestic demand for low-carbon steel is prompting major producers to invest in hydrogen-based steelmaking and EAF retrofitting.

• Imports account for nearly 60% of total steel consumed in the UK, with the European Union being the leading supplier.

• Brexit has impacted trade routes, logistics, and tariffs, pushing the UK to seek new steel supply partnerships outside the EU.

• Government incentives for green steel and industrial decarbonization are encouraging local innovation and capital expenditures.

• Labour shortage, energy prices, and global overcapacity remain key concerns for the long-term sustainability of the UK steel sector.

UK Steel Market Size And Forecast

The UK steel market was valued at USD 10.2 billion in 2024, and is poised to reach USD 14.6 billion by 2031, growing at a CAGR of 4.3% during the forecast period.

The growth trajectory is fueled by increasing public infrastructure investments, particularly in railway expansion, renewable energy installations, and housing developments. The UK government’s net-zero targets by 2050 are also catalyzing a shift toward cleaner production processes and greener construction materials. Moreover, reshoring of strategic steel production capacity post-Brexit has enhanced focus on domestic production reliability.

Introduction

Steel is a critical pillar of the UK’s manufacturing and infrastructure ecosystem, contributing to sectors such as construction, automotive, energy, shipbuilding, defense, and heavy machinery. With a rich industrial history and skilled metallurgical workforce, the UK has traditionally maintained strong steel-making capabilities, centered around regions such as South Wales, Yorkshire, and the Midlands. Despite challenges from global competition and decarbonization pressures, the market is undergoing a pivotal transformation, emphasizing sustainable practices and technological modernization to remain globally competitive.

Future Outlook

The UK steel market is projected to witness stable yet strategically significant growth over the coming years. The sector’s future lies in high-grade steel production, specialty alloys, and low-emission manufacturing. With increasing focus on circular economy principles and scrap-based steelmaking, British producers are expected to enhance EAF capacity and reduce dependency on carbon-intensive methods. Collaboration between steelmakers, construction companies, and the government will be vital in reshaping procurement standards, establishing low-carbon steel certifications, and ensuring long-term energy security. As industrial decarbonization becomes mandatory, the UK steel market will experience innovation-driven disruption.

UK Steel Market Dynamics

International trade dynamics impact the steel market in the United Kingdom. The nation is a net exporter of steel products. The UK's steel demand is directly correlated with the performance of important industries like construction and automotive.

The sector has experienced consolidation, and in an effort to become more competitive and efficient, some businesses have made investments in updating their facilities.  In an effort to become more competitive and efficient, some businesses have made investments in modernising their facilities. 

To become more competitive, a few steel companies in the UK have prioritised innovation and technology adoption. This trend includes investments in R&D as well as the investigation of novel steelmaking techniques.

The UK steel industry, like many others, is under growing pressure to implement more ecologically friendly and sustainable practices. This covers initiatives to lower carbon emissions, boost energy effectiveness, and look into greener production techniques.

Recent Partnership in UK Steel Market

Drax and British Steel have an agreement in place to investigate the possibility of using Drax's steel to construct the largest carbon capture project in the world, valued at billions of pounds, at Drax's power plant in the UK.

The significant infrastructure project will require about 13,000 tonnes of steel, including beams made at British Steel's steelworks in Teesside and Scunthorpe. 

Drax hopes to protect and create thousands of jobs in the North by sourcing up to 80% of the goods and services required to develop BECCS in the UK from British companies.

They are glad to be collaborating with Drax to investigate the potential that this significant infrastructure project offers, both for the application of its steel products and for the acquisition of skills in the steel supply chain necessary to facilitate the growth of CCUS expertise in the UK.

Market Recent Development

Ecoke, a new electric steelmaking technique, is introduced by LIBERTY Steel UK to lower CO2 emissions. Through its GREENSTEEL strategy, LIBERTY aims to lead the transformation of the steel manufacturing industry, and the ecoke initiative is a part of that effort. 

Compared to conventional coal-based blast furnaces, which produce the great majority of the steel produced in the UK, production at LIBERTY's electric arc furnace in Rotherham produces only 10% of the direct emissions.

Ecoke has a minimum of 30% secondary biomass, which results in a 30% reduction in CO2. Ecoke is charged into the electric arc furnace using the scrap basket, just like anthracite, and the briquettes are delivered to the site in packaging akin to that of anthracite. 

This makes ecoke an excellent choice for steelmaking operations.Without negatively affecting the production process, the significant decreases in CO2 emissions that ecoke permits can aid in further decarbonising both their production and the larger steel industry.

Recent Trends in the UK Steel Market

• Advanced Coating: By improving the surface performance, robustness, and quality of steel products, advanced coating is crucial to the UK steelmaking sector. Applying thin layers of polymers like polyester and epoxy, galvanising and polymer coatings offer resistance to abrasion and corrosion.
• Recycled Steel:Using recycled scrap as the main source of raw materials is one of the latest trends in the UK steel industry. An electric arc furnace is used to recycle metals, offering a more energy-efficient option to conventional steelmaking. 
• Robotic Automation: An essential component of contemporary manufacturing processes is robotic automation. Through increased productivity, safety, efficiency, and quality control, it transforms the steel industry. Steel producers automate their plants more efficiently by utilising AI and continuous monitoring technologies.
• Predictive Maintenance: Steel producers plan preventive maintenance and anticipate possible failures by utilising machine learning algorithms and real-time data. Data on temperature, vibration, and energy use are used by systems to track deviations and give plant managers useful information.

Competitive Landscape

LIBERTY Steel UK is the third largest steel manufacturer in the country, with a footprint that covers nine sites across England, Scotland and Wales. It employs over 2,000 people and has an annual steel rolling capacity approaching two million tonnes.It has capabilities ranging from liquid steel production through to high value precision-engineered products, sold around the globe.

Rainham Steel is UK's foremost independent Steel Stockholder and Distributor. The company employs over 180 members of staff and manages its own fleet of 50 Heavy Goods Vehicles.The flagship 70 acre facility is primarily chosen for its locality to the nearby British Steel mills, as well as offering ease of access to the dock facilities for imports and exports.

CELSA Steel UK is the largest steel recycling company in the United Kingdom. From their facilities in Cardiff, they have capacity to produce 1.2 million tonnes of low emission circular steel, from UK sourced scrap metal. Celsa directly employs over 750 staff and several hundred sub-contractors in South Wales.

UK Steel Market Trends

• Transition Toward Green Steel Production
  Leading UK steel manufacturers are transitioning to low-emission technologies such as electric arc furnaces and hydrogen-based direct reduced iron (H-DRI). This transition is being driven by the UK government’s Industrial Decarbonisation Strategy and funding under the Net Zero Innovation Portfolio. Green steel adoption is also encouraged by growing customer demand for environmentally friendly building materials.

• Reindustrialization and Reshoring Initiatives
  The UK government is encouraging reshoring of key steel operations to reduce reliance on volatile global supply chains post-Brexit. Investments in localized steel clusters and supply chain resilience are helping domestic firms cater to critical sectors such as defense, nuclear, and rail transport. This has revived interest in advanced steel processing and alloy development.

• Digitalization and Smart Manufacturing Adoption
  Industry 4.0 technologies such as digital twin simulations, AI-based quality control, and IoT-enabled furnace monitoring are gaining momentum in UK steel plants. These technologies improve operational efficiency, reduce downtime, and support predictive maintenance, contributing to overall productivity gains in steel production facilities.

• Recycling and Circular Steel Economy Growth
  Steel recycling rates in the UK are rising steadily, with scrap metal forming a major input for EAF steelmaking. The circular steel economy is being reinforced through public-private partnerships, reverse logistics programs, and urban mining initiatives aimed at reducing landfill burden and energy consumption.

Growth Drivers For The UK Steel Market

• Surge in Infrastructure and Housing Projects
  The UK’s National Infrastructure and Construction Pipeline includes over USD 800 billion in planned investments through 2030. Projects such as HS2, offshore wind installations, hospital construction, and housing regeneration will continue to boost demand for long and flat steel products.

• Automotive and EV Manufacturing Expansion
  The growth of electric vehicle production in the UK, driven by investments from companies like Nissan and Tata, is spurring demand for high-strength and lightweight steel alloys. Steel continues to be a critical material for battery casings, chassis, and drivetrain components.

• Defense and Aerospace Sector Revitalization
  The UK’s strategic focus on bolstering national defense and aerospace manufacturing is creating demand for specialty steels and performance alloys. Long-term contracts for fighter jets, naval vessels, and satellite systems ensure steady steel requirements from these sectors.

• Government Support for Decarbonization
  Through initiatives like the UK Steel Decarbonisation Fund, Clean Steel Fund, and Carbon Border Adjustment Mechanism consultations, policymakers are offering financial and regulatory support to help steel producers transition toward sustainable production without losing competitiveness.

• Availability of Scrap and Secondary Steel Inputs
  The UK benefits from a robust scrap collection and processing ecosystem, supporting efficient use of secondary steel. This enables easier adoption of EAF methods and enhances circularity while reducing carbon emissions significantly.

Challenges In The UK Steel Market

• High Energy Costs and Volatility
  The steel industry is highly energy-intensive, and fluctuating electricity and gas prices in the UK pose major cost challenges. Producers face difficulty maintaining competitiveness against countries with subsidized or low energy costs, especially for continuous operations like BOF plants.

• Intense Global Competition and Imports
  Steel imports from the EU, China, Turkey, and India place downward pressure on UK-made steel pricing. Competing on cost, especially in commodity-grade products, is a persistent challenge for British manufacturers due to higher production expenses.

• Decarbonization Capital Requirements
  Transitioning to green steel production requires substantial investments in new furnaces, hydrogen infrastructure, and carbon capture technologies. Smaller producers in the UK may struggle to afford this transformation without significant public-private support.

• Brexit-Induced Trade Uncertainties
  Regulatory divergence, customs complexities, and re-negotiated trade terms post-Brexit have disrupted supply chain continuity and increased import/export costs for steel producers and users, especially those operating in integrated European networks.

• Labour Shortages and Skills Gap
  A shortage of metallurgists, plant engineers, and skilled furnace operators has impacted workforce sustainability in UK steel plants. The aging workforce and lower interest among youth in industrial careers further exacerbate the talent deficit.

UK Steel Market Segmentation

By Product Type

• Flat Steel

• Long Steel

• Tubular Steel

• Special Steel & Alloys

By Production Process

• Basic Oxygen Furnace (BOF)

• Electric Arc Furnace (EAF)

• Secondary Steel/Recycled

By End-Use Industry

• Construction & Infrastructure

• Automotive & Transportation

• Energy & Power

• Industrial Machinery

• Shipbuilding & Marine

• Defense & Aerospace

By Distribution Channel

• Direct Supply Contracts

• Distributors & Service Centers

• E-commerce & Digital Platforms

Leading Key Players

• British Steel Limited

• Tata Steel UK

• Liberty Steel Group

• Celsa Steel UK

• ArcelorMittal Kent Wire

• Outokumpu Stainless Ltd

• Essar Steel UK

• Barrett Steel

• Sheffield Forgemasters

• Aalco Metals Ltd

Recent Developments

• British Steel announced a £1.25 billion investment plan to build two electric arc furnaces at its Scunthorpe and Teesside sites, reducing CO₂ emissions and aligning with green steel targets.

• Tata Steel UK confirmed a phased transition to electric arc furnace technology at its Port Talbot plant as part of a £500 million support deal with the UK government.

• Liberty Steel Group expanded its GREENSTEEL production strategy by scaling up low-carbon steel capacity at its Rotherham plant, with plans to integrate hydrogen-ready systems.

• Celsa Steel UK launched a digital quality control system using AI and IoT sensors to monitor steel bar uniformity and reduce production waste.

• Sheffield Forgemasters secured a major defense contract to supply nuclear-grade steel components for the UK’s submarine fleet, reinforcing the strategic value of specialty steelmakers.

This Market Report will Answer the Following Questions

1. How much steel is manufactured in the UK? Who are the sub-component suppliers in different regions?
2. Cost breakup of a UK steel market and key vendor selection criteria
3. Where is the steel manufactured? What is the average margin per unit?
4. Market share of UK steel manufacturers and their upcoming products
5. Cost advantage for OEMs who manufacture steel in-hoUKe
6. key predictions for next 5 years in UK steel market
7. Average B-2-B steel market price in all segments
8. Latest trends in UK steel market, by every market segment
9. The market size (both volume and value) of the UK steel market in 2025-2031 and every year in between?
10. Production breakup of steel market, by suppliers and their OEM relationship