British Steel BF problem weighs on UK sections supply

UK supply of structural steel sections could tighten as a result of a problem with British Steel's Queen Anne blast furnace (BF) at its Scunthorpe site.

Damp coke could have caused the furnace problem, according to market participants. British Steel closed its coke ovens in 2023 and relies on imported metallurgical coke.

The problem has slowed semi-finished steel production and caused a shortage of process gas for rolling lines. The steelmaker's Teesside Beam Mill is estimated by market sources to have enough semi-finished steel for around two weeks of production when it re-opens next week after a shutdown

The reduction in iron making and rolling has caused some gaps to appear in the company's stock and buyers are now having orders for July turned down. One trader was told it would only have availability for late August.

Partially as a result of the issues, the company announced two £30/t increases for structural sections in June and is expected to announce another £30-45/t increase in the next few weeks. Steelmaker ArcelorMittal recently tried to implement its own £40/t rise and a leading longs trading firm has hiked its offer to around £750/t.

But demand remains sluggish, meaning the increases are not being widely accepted by service centres, which are struggling to pass through rises to their own customers.

"We have recently experienced an operational issue with one of our blast furnaces which we are confident will be resolved imminently. We continue to manufacture iron and steel, and are working closely with our customers to satisfy demand and ensure they get the high-quality products they require," a company spokesperson told Argus.

By Brendan Kjellberg-Motton