The UK steel industry is suffering from imports

The recovery of the steel industry in Great Britain is being slowed down by the dumping practiced on the steel market in Europe, industry representatives warn.

UK steel production was flat at 11.9 million tonnes in 2014, after rising 24 per cent in 2013. Last year there was a rise of just 0.2 per cent. According to figures provided by the UK Steel division of the EEF. In Great Britain, production capacity is still 19% below the pre-recession level.

The main cause of this disappointing result is imports. They represented 60% of the European market last year, compared to 56% a year earlier.

Ian Rodgers, director of UK Steel, said that steel demand was estimated to be 12 percent higher in 2014. However, the main beneficiaries were foreign producers.

„The progressive rise in the value of the pound sterling, increased demand in the UK compared to the stagnant economies of the Eurozone and the sharp slowdown in Chinese growth all combine to make the European steel market a magnet for overcapacity overseas steel companies” , said Ian Rodgers.

He asked the European Commission to act on incorrect steel imports, with support from the British government. Working conditions in a competitive environment must be ensured for steel companies in Great Britain.

David Gray (representative of the trade union of metallurgists) said „A competitive steel industry is a vital component of UK manufacturing.”

„Regarding dumping, we deplore any such activity. Because this distorts the proper functioning of markets and such practices in the UK must be vigorously attacked.”

Source: http://www.yorkshirepost.co.uk/business/business-news/uk-steel-recovery-stuttering-due-to-dumping-of-cheap-imports-into-europe-1-7082952