H. Yoo
Research expert covering South Korea
Steel and metal import trading in the UK - statistics & facts
The United Kingdom's economy is heavily dependent on imports from the European Union, and the steel sector is no exception. Germany, Spain, and Belgium were the leading exporters of iron and steel products to the UK. The steel and metal industry is essential to the United Kingdom's manufacturing sector. Even though the UK is predominantly a service economy, the manufacturing sector accounted for 18 percent of the UK's gross domestic products as of 2021. Currently, aluminum is significant for the automotive industry, as manufacturers have preferred lightweight materials over heavier steel.
Post-Brexit Era for British Steel
Recently, the British steel sector encountered several difficulties, such as a decline in demand for steel and Brexit. Specifically, Brexit has a significant impact on the British steel industry. Introduced trade barriers between the United Kingdom and the European Union affected the trade of steel and metal products. Increased tariffs, customs checks, and bureaucratical procedures led to supply chain disruptions in the country and later production drops. After Brexit, the British government implemented temporary tariff protections and made R&D investments to support the country's steel industry. Although the long-term effects of the regulations were uncertain, import figures increased in almost all types of steel imports in 2021. In particular, the iron ore imports increased by 15 percent, and finished and semi-finished steel import levels rose by 30 percent year-over-year.Net Zero in the British Metal Industry
Total greenhouse gas emissions from the iron and steel industry have primarily decreased with fluctuations over the previous ten years; however, this was not enough to decarbonize the sector to align with Net Zero targets agreed on in the Paris Agreement. The British industry has been cutting the energy intensity of steel production and switching to scrap-based production to reduce greenhouse gas emissions in manufacturing. Specifically, most metals can be continuously used in the production of various products. Accordingly, the UK also increased its metal scrap imports to meet Net Zero targets. In 2021, the country imported 156 million British pounds and 88.6 million worth of aluminum scrap, and ferrous waste and scrap, respectively.
