Government/Policy
July 17, 2026
CRU: UK renationalizes British Steel
Written by CRU
This item was first published by CRU. To learn about CRU’s global commodities research and analysis services, visit www.crugroup.com.
The British government has taken longs producer British Steel back into public ownership. It said doing so will protect the future of steel production in the UK.
Beijincg, meanwhile, has called for the legitimate rights of former owner Jingye Steel to be respected.
London has run British Steel since April 2025. It took over from Jingye then after doubts arose about the Chinese company’s intention to keep operating the loss-making integrated works at Scunthorpe, England.
With the renationalization now complete, a new leadership team has been appointed. The focus: stabilizing the business and turning it into a commercially sustainable, low-carbon enterprise, the government said.
“British Steel produces products that are fundamental to building and maintaining the nation’s railways, infrastructure, and manufacturing base,” said Gareth Stace, director-general of sector body UK Steel:
“Retaining this capability in the UK is essential to strengthening our industrial resilience, supporting economic growth, and reducing reliance on imports in an increasingly uncertain world,” he added.
China’s commerce ministry urged the British government to take decisions prudently. It also urged London to “respect the wishes of firms and market principles, and avoid the abuse of administrative coercive measures,” according to media reports.
London should take into account Jingye’s huge investment in British Steel and its contributions to the UK economy. And there should be “a fair and proper solution acceptable to both sides,” the ministry said.
Jingye has asked to be compensated for losses from investments made before the UK government took over operating the plant. It is uncertain if the company will receive anything.
“The legislation that went through parliament … has a mechanism by which an independent assessor will now judge if or if not any compensation is due,” UK Business Secretary Peter Kyle said. There is a possibility nothing would be paid, he added.
Formerly state-owned, British Steel was privatized in 1988. It has had a checkered history. The government ran it for a spell in the late 2010s. Jingye bought it in 2020. And it pledged to spend £1.2 billion ($1.6 billion) to place the operation on a more competitive and sustainable footing.
But when the government intervened last year, the Scunthorpe works was losing £700,000 ($941,670) a day, according to Jingye.
