# UK SBS PS16168 Future Capacities and Capabilities of the UK Steel Industry

> Contract award record from UK public-sector procurement sources.

## Key facts

- Public buyer: [UK SHARED BUSINESS SERVICES LIMITED](/buyers/uk-shared-business-services-limited/contract-awards)
- Contract winner: [Grant Thornton UK LLP](/contract-winners/grant-thornton-uk/public-sector-contract-awards)
- Award value: £166,255
- Award date: 6 September 2016
- Published: 18 November 2016
- Contract start: 7 September 2016
- Contract end: 6 March 2017
- Stage: awarded
- Procurement category: services
- Notice ID: 7cb8dcb7-cdc7-44cd-af4b-af1af9a6f2cc-108808
- OCID: ocds-b5fd17-28498d14-adca-11e6-9901-0019b9f3037b

## Description

The dynamics of the global steel industry have changed significantly in recent years\. From the peak reached in 2011 to the start of 2016 the price of steel has more than halved, with contributing factors including overcapacity at a global level, weaker demand in Europe and expanded supply from China\. The steel industry in the UK is already under significant pressure from these forces, as demonstrated by the closure of SSI UK’s Redcar steelworks in 2015\. Throughout the global steel price downturn, the department has provided ongoing support to Britain’s steelmaking and British steelworkers to deliver a long-term, sustainable sector\. That support has already seen tens of millions of pounds of compensation paid to energy intensive industries and will see them exempted from climate policy costs\. The department has also protected the industry from unfair trading practices and has helped the government become the first to implement new guidelines making it easier for the public sector to buy British steel\. The overriding aim of this business analysis and research is to assess the extent to which the current capability of the UK steel sector is well aligned to the potential future demands of the UK and EU markets\. Such analysis at a company level will identify the industry’s strengths and weaknesses in market strategies and positions, as well as the areas where it needs to adapt and develop and what the barriers to this are\. The output will assist industry and government in developing a long-term plan working together for a sustainable and competitive UK steel industry\. Central to the study is engagement with steel consumers across a wide range of UK industrial sectors\. A robust assessment of future UK demand for steel products by sector will be based on direct engagement with consuming sectors on their future business plans, have credibility with industry, and stand up to scrutiny from industry and the Steel Council\. It will also require direct engagement with steel producers to understand their commercial strategies and how they are adapting to developing steel markets\. Given the commercially sensitive nature of future business planning, the successful bidder will be well placed to gain the trust and co-operation of purchasers throughout the steel supply chain and in a range of key sectors\. BIS will provide assistance where possible to supplement your own efforts to secure interviews\.

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## Source

[View the original notice on Contracts Finder](https://www.contractsfinder.service.gov.uk/Notice/7cb8dcb7-cdc7-44cd-af4b-af1af9a6f2cc-108808)