I read this interesting comment on another site this morning. I have no idea how much expertise/knowledge the writer has of steel production, but it sounds convincing and introduces some complexity to the debate.
Making steel is a complicated process with many stages. And steel is not a uniform product. What type of steel do you need, for what function?
Blast furnaces don’t produce steel. They produce pig iron. To do that, they need raw materials – iron ore, coke, limestone, etc. And ideally those bulk materials would all be available nearby. So where does Scunthorpe source its raw materials?
The coking ovens in Scunthorpe were closed down a few years ago. So that all needs to be imported.
And then the output from the blast furnace (impure cast iron) needs to be processed to produce whatever products are required – stainless steel, carbon steel, long or flat products, or whatever. So which are we making and why? Rails for trains? Wires? Plates for ships or cars?
The UK’s steel production is minuscule. About 4 million tonnes in 2024. About the same as Sweden or Finland. The Netherlands is about 6, Austria and Belgium and Poland all about 7, France and Spain about 11, Italy 20 and Germany nearly 40 MT. The world production is a both 1,800 million tonnes each year, with more than half in China, about 8% in India and around 4% in each of Japan, Russia and the US. The UK is less than a quarter of a percent. 2 parts in a thousand.
As far as I can see there is no primary production of iron or steel in many countries – Switzerland or Ireland or Portugal, for example – but some of them have arc furnaces that take in iron or steel of one sort (recycled, or from their neighbours) and produce different steels of higher value.
So what is the argument for primary production from ore in the UK? Do we expect we might be unable to import iron or steel from say France or Germany?
Perhaps we should just shut down these blast furnaces and make the jump to electric arc furnaces or direct reduction. And even if we do need to keep them as a strategic reserve, why can’t we close down the blast furnaces (in the same way that they are shut down for maintenance) ready to reopen?
The story that we have been sold over the closure of blast furnaces has been that only they can produce certain high quality steels. and that recycling via electric arc furnaces can't do this. Is this true?