UK steel production soars at start of 2011

Hopes for an industrial recovery in the UK steel industry will be buoyed today on the announcement that production bounced back in January on increased demand.

Production in the UK soared 35.4 per cent in January to 201,000 tons a week – compared with 148,574 in December, according to UK Steel figures that were to be released this morning.

UK Steel, a division of the manufacturers' organisation EEF, said this was reflected in "sharp increases" across the country's major steel-producing regions "as UK manufacturing continued to respond to increased demand". The British sector is dominated by Corus, owned by Tata of India.

Production in the Yorkshire and Humber area increased by 50 per cent to 89,200 tons a week, and Wales saw an increase of about one-fifth to 101,000. Ian Rodgers, director of UK Steel, said: "The uplift in January output was heartening and is a reflection of the continuing improvement in UK manufacturing output generally."

But he cautioned: "We still have a long way to go to achieve pre-recession levels of steel output, with demand from the construction sector in particular remaining very weak."

The global steel industry was hit hard by the recession but recovered last year as output rose 15 per cent, the biggest full-year increase for more than 50 years, the World Steel Association said in January.

Yet UK output declined 3.7 per cent, the only country with Venezuela to see output fall in 2010. The boom earlier in the last decade was driven by demand in China, although that growth is slowing. Last year, China demand fell behind the rest of the world and the trend is expected to continue in 2011.

Earlier this month, metals giant ArcelorMittal talked up the prospects for a recovery in the global steel industry this year. The group revealed its steel production for 2010 had hit 85 million tons, more than one-fifth higher than the previous year.

Much of the UK's steel output still goes to the car industry and the revival in world trade, with a 20 per cent depreciation in sterling since 2008, has helped to push car exports and production much higher. The industry has also benefited from industrial re-stocking since the end of the recession. Like many basic industries, steel is also highly cyclical.

Suggested Topics
Start your day with The Independent, sign up for daily news emails
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Sales Assistant / Buyer

£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...

Recruitment Genius: Customer Service Advisor

£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....

Recruitment Genius: Compliance Manager

£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...

Day In a Page

Greece debt crisis: What happened to democracy when it’s a case of 'Vote Yes or else'?

'The economic collapse has happened. What is at risk now is democracy...'

If it doesn’t work in Europe, how is it supposed to work in India or the Middle East, asks Robert Fisk
The science of swearing: What lies behind the use of four-letter words?

The science of swearing

What lies behind the use of four-letter words?
The Real Stories of Migrant Britain: Clive fled from Zimbabwe - now it won't have him back

The Real Stories of Migrant Britain

Clive fled from Zimbabwe - now it won’t have him back
Africa on the menu: Three foodie friends want to popularise dishes from the continent

Africa on the menu

Three foodie friends want to popularise dishes from the hot new continent
Donna Karan is stepping down after 30 years - so who will fill the DKNY creator's boots?

Who will fill Donna Karan's boots?

The designer is stepping down as Chief Designer of DKNY after 30 years. Alexander Fury looks back at the career of 'America's Chanel'
10 best statement lightbulbs

10 best statement lightbulbs

Dare to bare with some out-of-the-ordinary illumination
Wimbledon 2015: Heather Watson - 'I had Serena's poster on my wall – now I'm playing her'

Heather Watson: 'I had Serena's poster on my wall – now I'm playing her'

Briton pumped up for dream meeting with world No 1
Wimbledon 2015: Nick Bollettieri - It's time for big John Isner to produce the goods to go with his thumping serve

Nick Bollettieri's Wimbledon Files

It's time for big John Isner to produce the goods to go with his thumping serve
Dustin Brown: Who is the tennis player who knocked Rafael Nadal out of Wimbeldon 2015?

Dustin Brown

Who is the German player that knocked Nadal out of Wimbeldon 2015?
Ashes 2015: Damien Martyn - 'England are fired up again, just like in 2005...'

Damien Martyn: 'England are fired up again, just like in 2005...'

Australian veteran of that Ashes series, believes the hosts' may become unstoppable if they win the first Test
Tour de France 2015: Twins Simon and Adam Yates have a mountain to climb during Tour of duty

Twins have a mountain to climb during Tour of duty

Yates brothers will target the steepest sections in bid to win a stage in France
John Palmer: 'Goldfinger' of British crime was murdered, say police

Murder of the Brink’s-MAT mastermind

'Goldfinger' of British crime's life ended in a blaze of bullets, say police
Forget little green men - aliens will look like humans, says Cambridge University evolution expert

Forget little green men

Leading evolutionary biologist says aliens will look like humans
The Real Stories of Migrant Britain: An Algerian scientist adjusts to life working in a kebab shop

The Real Stories of Migrant Britain

An Algerian scientist struggles to adjust to her new life working in a Scottish kebab shop
Bodyworlds museum: Dr Gunther von Hagens has battled legal threats, Parkinson's disease, and the threat of bankruptcy

Dying dream of Doctor Death

Dr Gunther von Hagens has battled legal threats, Parkinson's disease, and the threat of bankruptcy