Steel has been forged in Britain for centuries, with many modern techniques developed here. driving the Industrial Revolution and shaping the skylines of towns and cities across the country. While questions about its future often make headlines, steelmaking remains an important part of the national economy.

The UK still produces millions of tonnes of steel every year, though the scale, processes, and areas of specialism have shifted significantly in recent decades. This guide looks at how steel is made today, the challenges the sector faces, and the opportunities for building a more sustainable future.

A Brief History of the UK Steel Industry

The UK was once the world leader in steelmaking. During the 19th and early 20th centuries, British steelworks powered railways, shipbuilding, and industrial growth across the globe. Regions such as South Wales, Sheffield, and Scotland became synonymous with steel production, forming the backbone of the UK steel industry history.

South Wales is the home of 7 Steel UK and we can trace our roots back to the start of the industrial revolution in the 1700s when modern iron making began in Dowlais, Merthyr Tydfil.  Dowlais and Merthyr were towns that along with others across Wales and the wider UK powered the industrial revolution and was the springboard for sending the technology around the world.

Over time the natural local resources dwindled so the “Dowlais” works was established in the port city of Cardiff at its East Moors site to be nearer to the now shipped raw materials. Operations commenced in 1895, and at one time the site boasted 4 blast furnaces being the catalyst for development in much of the east of the city. The site has been owned and operated by some of the great names in British industry such as Guest Keen & Nettlefolds (GKN) before becoming British Steel.

By the 1970s, however, the landscape began to shift. Cheaper imports, changes in global demand, and the closure of outdated plants all reduced domestic output. The blast furnace operations in Cardiff ended in 1978.

While the UK no longer produces steel at the scale it once did, the sector remains vital, supporting construction, energy, and infrastructure projects nationwide. With the development of an Electric Arc Furnace approach in 2006, Cardiff is again producing the steel that is at the heart of these sectors

Current State of UK Steel Production

The UK produces around 4per year, according to recent figures. This represents only a fraction of global output but still positions the UK as an important player in specialised, high-value steel markets.

Modern UK steel plants use two main methods:

• Blast furnace steelmaking – producing primary steel from iron ore and coal.

• Electric arc furnaces (EAFs) – recycling scrap into new steel using electricity.

Increasingly, investment is shifting towards electric arc technology because of its lower emissions and ability to recycle used rebar and other scrap materials into new products. 7 Steel UK are leading this shift, ensuring steel is produced more sustainably and sourced responsibly within the UK producing up to 1.2 million tonnes annually.

Why Is the UK Steel Industry in Decline?

Despite its proud heritage, the UK steel industry faces well-documented challenges:

Global competition: 

Lower-cost producers, particularly in Asia, dominate the UK steel market with cheaper imports.

Rising energy costs:

High electricity prices increase production costs for British steelmakers.

Policy uncertainty:

Delays in developing a clear national steel strategy make long-term investment planning difficult for steel companies.

Environmental pressures:

Decarbonisation is essential, but transitioning older plants requires significant funding.

These factors have contributed to the perception of decline, yet the UK still retains key facilities and expertise in producing specialised steel grades and sustainable reinforcement products.

UK Steel in Global Trade

In 2024, the UK exported approximately 2.9 million tonnes of steel, valued at £4.8 billion. Key export destinations were the Netherlands, Ireland, Spain, Turkey, Belgium, and the United States, highlighting the UK’s significant role in the global steel market.

Recent trade discussions have highlighted challenges around tariffs and compliance, particularly for exports to the US.

Despite the UK securing a trade agreement with the US that reduced tariffs on steel exports, challenges persist. The US currently imposes a 25% tariff on UK steel imports, and compliance with “melted and poured” requirements remain a concern, potentially affecting the competitiveness of British steel in the US market. While the UK has a temporary exemption from a proposed , ongoing negotiations are needed to secure long-term certainty for exporters.

Applications of UK Steel Today

Steel remains essential to almost every part of modern life. In the UK, steel is used across:

• Construction– structural beams, prefabricated units, and reinforcement bars.

• Energy– from wind turbine towers to nuclear infrastructure.

• Transport – rail networks, bridges, and airports.

The versatility of steel extends into many grades and applications. For example, the uses of carbon steel include everything from pipelines to reinforcement bars, while higher-grade steels are essential for aerospace and advanced engineering.

Sustainability and the Future of UK Steel

One of the most significant changes shaping the industry today is sustainability. With construction and infrastructure under pressure to decarbonise, UK steel suppliers are following in the 7 steel UK footsteps adopting circular economy principles. This includes:

• Recycling scrap to produce new steel in electric arc furnaces.
• Reducing transport emissions by sourcing and producing steel domestically.
• Offering traceability across the supply chain to support ESG goals.

This transformation is positioning the UK as a leader in low-carbon steelmaking. Rather than competing on volume, modern UK steel works are focusing on quality, sustainability, and specialist applications.

Beyond Rebar: Innovation and Industry Trends

While the focus here is on UK steel production, it’s also important to consider how the sector is evolving. Emerging trends include:

• Digital design and prefabrication – BIM and off-site solutions are reshaping how steel is used in construction.

• Circular economy practices – from recycling reinforcement bars to repurposing scrap across industries.

• Collaboration with government and industry bodies – ensuring the future of steel is secure, efficient, and environmentally responsible.

These innovations show that while the industry is smaller than in its peak period, it is becoming smarter and greener.

A Smaller but Smarter UK Steel Industry

So, does the UK still produce steel? Absolutely. While no longer the industrial giant it once was, the UK continues to manufacture millions of tonnes of steel every year. More importantly, it is reshaping itself into a sustainable, future-focused industry.

By combining recycled content, modern manufacturing methods, and expertise in specialist products, companies like 7 Steel UK demonstrate how the UK steel industry can remain competitive in a global market.

For contractors, developers, and infrastructure partners, choosing a trusted UK steel supplier means not only securing high-quality steel but also supporting a more sustainable future.

Contact us today to learn how 7 Steel UK can support your next project with sustainable, UK-produced steel solutions.