Steel production rises on back of recovery

Figures exclude output from mothballed Tata plant on Teesside

Steel production in the UK increased on a like-for-like basis by almost a quarter in 2010 on the back of a recovery in the global economy, according to new figures published by UK Steel, the body representing the sector.

UK Steel, a division of manufacturers’ organisation the EEF, said that after adjusting for the mothballing of Tata Steels’ Teesside plant in February last year, like-for-like output in 2010 was 9.4 million tonnes – compared with 7.5 million tonnes in 2009, an increase of 24.7%.  

Latest data for monthly production show December was 20.1% below that in November (148,000 tonnes per week compared to 186,000) as stockholders ran down inventories towards the year end.

Ian Rodgers, UK Steel director, said: “The strong improvement in steel output during 2010 was encouraging, and reflects the pick-up in manufacturing activity experienced both in the UK and in our principal European export markets. Nevertheless production remained well below pre-recession levels.

“The disappointing end to the year was largely due to steel supply chains running down stock levels in advance of the year-end.  As a consequence, many steel companies introduced extended shutdowns and maintenance closures during the Christmas period.

“2011 has started positively, and we are hopeful that steel output levels will have recovered in January.”

The EEF has taken over publication of production data for the sector from the Iron and Steel Statistics Bureau and will be issuing production figures on a monthly basis.