Crude Steel Production
UK crude steel production plunged in 2016 by 28% to 7.8 million tonnes as the full year effect of the closure of SSI BOS slab facility at Teesside took effect. The main contributor was the failure of SSI BOS slab facility on Teesside. This level of steel production is the lowest since the 1930’s.
Steel demand in the UK recovered in 2016, following a 2% define the previous year, and at 11 million tonnes represents the highest level of demand since the downturn in 2009. Although this level is 23% below the most recent peak in 2007, it is 39% above the trough in 2009. Import share also achieved a peak level in 2016 at 61%.
Trade in Steel
UK exports plunged by 29% in 2016 relative to the previous year. Whilst the closure of the SSI plant, which produced slabs for sale in the RoW markets of Thailand, Turkey and USA was the main contributor, exports to EU destinations also reduced despite the unexpected movement in exchange rates mid-year.
In contrast imports surged in 2016, by 6%. The main growth was secured by non EU sources which included; India, Ukraine, Taiwan and South Korea. In contrast, imports from China fell be 38%.
The geographical split of UK steel exports and imports over 2014 and 2015 is shown below: