The UK Steel industry is currently facing a potential crisis and has called for short-term subsidies to help it survive the impact of surging energy prices.
A shortage of natural gas in Europe has allowed energy prices to soar triggering sharp increases in the prices paid by major businesses and heavy industrial plants smelting steel.
Furthermore, with winter fast approaching and gas and electricity prices continuing to soar, it could soon become impossible to profitably make steel.
What impact will this have?
Aside from the potential increase of prices for steel made goods and the halting of production in certain industries such as construction and real estate, rising gas prices could have a wider effect on the livelihood of many businesses.
Gareth Stace, director general of trade body UK Steel currently employing over 31,000 people, has recently stated:
“If the government doesn’t step in, then how many of those jobs will it see go and then cause a bigger bill for the taxpayer going forward if these people that currently work in the steel industry are out of work?”
According to Sky News, Mr Stace has also called for the prime minister to “bang ministerial heads together” amid an apparent falling out between the business department and the Treasury over help for the steel industry.
Will this impact Newgate clients?
The ongoing problems circulating the steel industry are effecting manufacturers across the entirety of the UK. However, the team at Newgate would like to reassure all clients that we will endeavour to keep our costs as competitive as possible and continue to provide quality products and services.