UK steel sector affected by energy costs as Brexit approaches

British steel producers pay twice as much for electricity as their French competitors. And 50 percent more than their German rivals, an industry report showed on Wednesday.

The report, commissioned by the UK Steel group, shows that the difference between UK and EU electricity prices has widened for the third consecutive year, affecting energy-intensive sectors such as steel.

This news comes before the exit from the European Union, on March 29, which could affect steel production in Great Britain. If it would produce customs delays, new tariffs and other trade barriers with Great Britain’s largest trading partner.

„Price inequality continues to erode the industry’s ability to attract international investment. Instead, the investments will be made in markets with more advantageous conditions”. Gareth Stace, Managing Director of UK Steel, said.

„It is time for the Government to secure the future viability of the UK steel sector.”

The industry report shows that the government’s analysis of the industrial strategy and electricity costs, launched a year ago. It still needs to protect vulnerable industries from the effects of Britain’s exit from the European Union.

British steel producers sector of Great Britain

Steel is often on the political agenda of Great Britain. Because it is considered an essential strategic industry for economic growth. This metal is also used to produce military weapons.

The UK steel industry is slowly recovering from a crisis that saw the loss of 7,000 steel jobs, around a quarter of the workforce, between September 2015 and March 2017. It is estimated that for every job from the steel sector, four jobs are lost in other sectors.

Article source: https://uk.reuters.com/article/us-britain-economy/uk-economy-slows-in-three-months-to-october-trade-prospects-darker-idUKKBN1O90Y6