Yesterday, the UK Government published its eagerly anticipated UK Steel Strategy, setting out a long-term plan for domestic steelmaking.

As widely reported, the Strategy outlines an ambition to increase domestic steel production to 40–50% of UK demand, alongside the introduction of a new trade measure effective from 1 July 2026. Under this measure, import quotas will be reduced by 60%, and steel imports above quota will incur a 50% tariff, bringing the UK in line with EU, US and Canadian approaches.

However, the Strategy is also highly significant for the UK metals recycling industry. There is an entire section dedicated to Securing Scrap Supplies, the opening paragraph of which neatly summarises its purpose. It states:

“To fully realise the benefits for EAF-based steel production, the UK needs a resilient, cost-effective and high-quality scrap steel supply chain. The metal recycling sector’s ability to innovate and meet emerging demand will directly shape the competitiveness of UK-made steel.”

The BMRA welcomes the recognition of the critical role of recycled metal ‘scrap’ in delivering a resilient and sustainable circular steel sector. This is a lobbying position the BMRA has continually advocated to UK policymakers for several years.

BMRA has actively engaged in shaping this Strategy, primarily through the representation of CEO James Kelly on the UK Steel Council, as well as through meetings with policymakers in recent months.

BMRA is therefore pleased to see that the Strategy does not impose restrictions on scrap exports. The BMRA commissioned and Sheffield Hallam University produced Assessing the impact of potential restrictions on UK recycled metals exports successfully demonstrated that such restrictions would harm the economic value generated by the metals recycling industry.

Several months ago, we also wrote to Ministers regarding the leakage of vehicles approaching end-of-life overseas. It is therefore encouraging to see the Strategy explicitly recognise that reducing these exports could strengthen domestic scrap flows.

It is also good news that the UK Government has recognised the need to carefully consider its strategic approach to recycled materials. It has committed to forming a cross-government scrap working group by May 2026, bringing together DBT, DEFRA and DESNZ alongside industry. BMRA looks forward to engaging constructively with Government through this group. To ensure balanced and effective discussions, it will be essential that the group includes a diverse representation of metal recyclers as well as metal manufacturers.

The Strategy notes that domestic demand for high-quality scrap will rise seven to eight times as new EAF capacity comes online. While Government support for innovation and infrastructure investment through the new working group is welcome, concerns remain that a significant portion of the £1.2bn–£2.3bn identified in the National Wealth Fund Taskforce’s Interim Sector Analysis for “scrap facility upgrades” may instead be absorbed by Government loans to support British Steel. We are now seeking clarification on this point. The case was also made to the Minister at yesterday’s Steel Council meeting that the qualifying threshold for assistance from the National Wealth Fund be reduced from the current £25m cost.

Confirmation that the British Industrial Competitiveness Scheme will extend to supply chain businesses is also welcome. This could reduce metal recyclers’ electricity costs by between £35 per MWh and £40 per MWh, although eligibility criteria have not yet been confirmed.

BMRA will continue to update members as UK Steel Strategy policy develops. Please do not hesitate to contact [email protected] for further information.