unlock multi-billion pound opportunity in steel procurement reforms

To provide a policy blueprint for the Government’s Steel Strategy, UK Steel has published a number of procurement policy reports to act as a suite of proposals to improve the uptake of UK-made steel in taxpayer-funded projects - which could unlock billions for the steel industry and national manufacturing supply chains.

  • Our overarching Public Procurement of Steel report focuses on maximising the opportunity for steel in Government spending. 
  • In tandem, UK Steel commissioned independent analysis of the offshore wind market growth opportunity, with LumenEE unveiling a 25 million tonne demand and how UK steelmakers could meet requirements. 
  • A further position paper on defence has been published to advise on how UK steel can be used in defence and national security, from the construction of military estates to the steel gun barrels now being made in Yorkshire. 

Procurement policy downloads

Public procurement

To provide a policy blueprint for the Government’s Steel Strategy, UK Steel published 'Public Procurement of Steel: Time for new thinking for a thriving industry'. The report contains a range of proposals to improve the uptake of UK-made steel in taxpayer-funded projects which could unlock billions for the steel industry and manufacturing supply chains.

LumenEE analysis: A review of UK offshore wind steel requirements

The UK offshore wind pipeline is the second largest in the world and will require up to 25 million tonnes of steel (1 million tonnes per annum) between 2026 and 2050. This represents a potential £21 billion market for UK steel over the coming decades.

LumenEE analysis: A review of UK capability & capacity to supply offshore wind steel requirements

The UK offshore wind pipeline will require up to 25 million tonnes of steel between 2026 and 2050. UK steel mills have current capability and capacity to supply up to half of this, and with investment could supply up to 90%. For the UK steel sector to tap into this opportunity will require investment in both fabricators and steel mills.

Defence procurement: Position paper

UK Steel has identified a crucial opportunity to develop the industry-Government relationship with the Ministry of Defence (MOD) and secure the strategic supply of UK-made steel for the defence sector.

Recommendations

The UK Government should use the contribution our steel industry makes to national security to mandate or incentivise the use of UK-made steel, where possible, for projects of energy, defence, and related infrastructure via domestic content stipulations in contracts where public funding or subsidy is involved utilising World Trade Organisation (WTO) opt-outs.
In future auctions, the Government should evaluate the bidders’ contributions to sustainability, resilience, and local content, with these criteria applying to at least 30% of the volume auctioned annually, as the EU is currently implementing without challenge in its Net Zero Industry Act.
These should be required to adhere fully to the Procurement Policy Note for Steel5 and, given their criticality for our economy, be subject to local content requirements of not below 30%.
The existing PPN should be strengthened to require developers and public bodies to justify why they did not use UK-made steel, if it was available, and require a mandatory consultation of the forthcoming UK Steel Digital Catalogue.
A public-private partnership should drive investment into steel supply chains, which will attract inward investment, create jobs, drive economic growth, and ensure the UK develops resilient supply chains in the face of uncertain geopolitics.

F.A.Qs

How much money is spent on steel from abroad annually?

The latest data reveals that one third of the steel it procures is imported, with £1.5 billion spent abroad from the public purse every year rather than supporting UK steel producers

Is there missing procurement data?

Yes. These predictions have been made without even accounting for major initiatives such as carbon capture and storage, hydrogen infrastructure, nuclear energy, and offshore wind that the new Government wants to implement.

What's the forecast steel spend?

Over the next decade, government steel requirements will exceed £4.3 billion.

What's the biggest new steel market opportunity?

To shine a light on these missing sectors in Government figures and to show the real opportunity for both the Government and the British steel sector, UK Steel commissioned an independent report from LumenEE to identify the total steel needed for the rapid expansion of the UK’s offshore wind sector, out to 2025.