Key Themes

EAF Projects Signal New Era for UK Steel

Tata Steel UK is advancing its EAF installation at Port Talbot, with completion targeted for late 2027. Alongside this, the company has announced a new Pickling Line and Hot Strip Mill upgrade, both operationally aligned with the EAF start-up. In the interim, Tata Steel UK will rely on slab and hot-rolled coil supply from other Tata Steel operations to sustain re-rolling capacity. British Steel entered government control in April 2025 following the divestment by Jingye Group. While two blast furnaces remain operational for now, long-term plans include full conversion to EAFs as part of the UK’s decarbonisation trajectory. Marcegaglia’s new EAF, scheduled for start-up in July 2026. In April 2025, 7Steel Global Investment acquired Celsa Cardiff plant, supporting EAF modernization across the UK. Meanwhile, Liberty Specialty Steels’ liquidation and government management highlight the fragility of the UK’s transitional steel landscape.

Market‑cycle context

According to Eurofer and UK Steel, global overcapacity has widened to 602 Mt and could hit 721 Mt by 2027 [2]. Oversupply from state‑subsidized producers and weak demand, especially in China, are pushing prices down and increasing the share of high‑emission imports in the UK market [2]. Delegates recognized that delivering new EAF capacity on time and on budget, and maintaining interim rerolling models, will be critical while policy and power pricing (hopefully) catch up.

Energy & Competiteness 

A new UK Steel report shows that British steel producers still pay up to 25 % more for electricity than their French and German peers, adding about £26 million a year in extra costs[2]. Average prices for 2025/26 are £59.48/MWh versus £52.04/MWh in Germany and £47.76/MWh in France[2]. High power grid charges and volatile wholesale prices complicate the economics of EAF projects and underline calls for two-way Contracts for Difference (CfDs) [2]. These contracts stabilize electricity prices by compensating either producers or buyers when market prices fluctuate, guaranteeing a fixed ‘strike price.

Trade, policy & CBAM

Delegates voiced frustration over the Carbon Border Adjustment Mechanism (CBAM), citing ongoing uncertainty around default values, reporting requirements and downstream coverage [3]. Frank Aaskov of UK Steel warned that poor implementation could trigger de-industrialization [3]. Imports covering 65% of UK demand [9] threaten domestic producers, underscoring the need for stronger trade-defense measures before safeguarding quotas expire in 2026[2].

Scrap quality, chemistry & traceability

According to Nightingale HQ’s expo summary, key highlights included Epicor, Jones Metal Software and CBAMBOO, all demonstrating real-time quality monitoring and energy management solutions[4]. Delegates called for simple, operator‑friendly systems that automate defect detection and provide real‑time prompts, rather than large platforms that deliver reports after the fact. The focus is on data capture at source and rapid root‑cause analysis to prevent rework.

Digital transformation that delivers

Delegates called for simple, operator‑friendly systems that automate defect detection and provide real‑time prompts, rather than large platforms that deliver reports after the fact. The focus is on data capture at source and rapid root‑cause analysis to prevent rework.

What we heard on the floor

• Market cycle: Global oversupply and import pressure compress margins, making it vital to reduce kWh/t, cost conversion and scrap‑to‑steel yield loss during the EAF transition[2].
• Scrap supply: The UK Metals Council warns that exporting 80% of the country’s scrap is unsustainable [2]. It highlights the lack of chemistry-anchored specifications and digital certificates [2] and calls for unified energy pricing along with a dedicated Minister for Manufacturing, proposals supported by nearly 60% of firms and 45% who want ministerial leadership [1].
• Energy & competitiveness: Unpredictable pricing and high network charges make kWh/t targets hard to lock; UK power prices remain 7–12 £/MWh higher than those in France and Germany[2]. Many plants lack granular metering, so savings aren’t provable.
• Digitalization: Data islands (PLCs, spreadsheets, historians) without closed‑loop prompts mean defects are caught downstream rather than prevented.

Moving forward

The UK Metals Expo 2025 highlighted that building a resilient, low-carbon steel sector depends as much on practical delivery as on policy. Success will hinge on competitive energy prices, clear trade rules, disciplined scrap management, and simple, operator-friendly digital tools. The forthcoming UK Steel Strategy, delayed twice and now expected later in 2025, remains central to defining how the £2.5 billion transition fund will be distributed. The delay has raised concern across the sector, with many delegates at UK Metals Expo 2025 emphasising that timely policy clarity is critical to sustain investment momentum and secure the UK’s competitiveness during its shift to EAF-based production.

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Notes and statistics from UK Metals Expo 2025 sessions, the UK Metals Council’s 2025/26 report, UK Steel reports and Eurofer analyses.

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Author:

Dr. Yasser Aboura Senior Project Manager/ Metallurgist 

Steel Hub, founded in 2016, is a technical consultancy specialising in offering customised solutions for the steel industry. We work together with our clients to deliver practical solutions to their company achieving optimised plant performance and long-term value, we proceed by engaging our diverse team of technical consultants, who are equipped to address every need.

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References:

1. UK Metals Expo, 2025, The New Era of Steelmaking in Port Talbot, UK Metals Expo. Accessed 09/10/2025. 
2. UK Steel, n.d., Steel Scrap: A Strategic Raw Material for Net Zero Steel, UK Steel. Accessed 09/10/2025.
3. Eurometal, n.d., UK Metals Expo: Concerns Remain Over CBAM Understanding, Eurometal. Accessed 09/10/2025. 
4. NightingaleHQ, 2025, Highlights from UK Metals Expo 2025, NightingaleHQ. Accessed 09/10/2025.