Commenting on the publication of the Government’s study into the ‘Future Capacities and Capabilities of the UK Steel Industry’ (published 15 December) and the new public sector ‘Steel Pipeline’, UK Steel director Gareth Stace said: “This report is a crucial milestone along the road away from the difficulties of recent years towards a more positive, sustainable future for the steel sector.

"We already knew the UK economy was set to consume increasing volumes of steel in the years ahead, but this report puts some big figures on the scale of this untapped opportunity.

"At a massive £3.8 billion annual opportunity for UK producers by 2030, this report shows once and for all that there can be a positive future here for our steel producers,if the right measures are put in place.

“This report serves as a useful guide for industry and the Government to what those measures are and what steps to take next. Building on the findings of this study, the steel sector has already put together an ambitious ‘Sector Deal’ proposal that will deliver the investment, expansion and innovation that will allow us to seize this opportunity with both hands.

“The Government has a vital role to play in helping us realise this vision, both in delivering the right business environment and in maximising the opportunities for UK producers from its own purchase of steel.

"The publication of the Government’s Steel pipeline — at over 4 million tonnes — shows the scale of its influence as a major consumer. We urge Government to continue working with the industry to identify and implement the solutions necessary to help us deliver a bright future for UK steel.”

The ‘Future Capacities and Capabilities of the UK Steel Industry’ study was commissioned by BEIS and conducted by a Grant Thornton UK-led consortium.

This received support from a steering board containing representatives from the UK steel sector, including: British Steel, Celsa Steel UK, Liberty Steel, Tata Steel UK and UK Steel (the trade association for the UK steel industry).