Steel Sector

Viscount Trenchard Excerpts

Thursday 23rd April 2026 Lords Chamber

[Lord Stockwood (Lab)]

On energy prices, the transition to green energy is absolutely critical for the sector. We remain as committed as always to sovereign energy supplies that can withstand the global shocks we are seeing through Iran and the war in Ukraine. We have that commitment and the only way we can bring down energy prices is with secure domestic supply. The noble Lord made a further point around the steel strategy in Wales. I refer him to the steel strategy; it is important that our steel industry is protected in the whole of the UK. The infrastructure he mentioned remains critical to ensuring that our steel industry can be competitive in the long term.

[Viscount Trenchard (Con)]

My Lords, would the Minister agree that steel produced by the electric arc furnace method cannot match the quality standards of steel produced in traditional blast furnaces? Therefore, British industry will still need to import a large proportion of its requirements from countries which still permit the operation of traditional blast furnaces. Can the Minister tell the House what proportion of British steel will need to be imported in that way?

[Lord Stockwood (Lab)]

On the consultation with the industry, the industry clearly states that arc furnaces are the future. They have a lower cost of production and lower overheads in terms of manpower. I cannot give an exact number on steel production. We are trying to make sure that we have the right amount of trade barriers in place to protect our own industry while allowing business to be competitive and import the steel that they require. That balance will be critical, but we will remain in consultation with the industry and review that if it does not satisfactorily prop up the industry and make it fit for the future.