Business secretary Sajid Javid has called for en Emergency EU meeting to discuss the crisis.
Mr Javid's call for action comes after thousands of job losses were announced across the industry on the back of the collapse of SSI in Redcar and cutbacks at Tata Steel in North Lincolnshire and Lanarkshire.
He will meet with European commissioners on Wednesday (October 28th) to discuss the sector and look at ways to deal with the urgent situation.
Steel workers are also preparing to lobby MPs. The industry says cheap Chinese imports and high energy costs are to blame for the collapse in steel prices, which has led to the job losses.
Bringing steel to the top of the EU agenda
Mr Javid will meet with industry and international market commissioner Elzbieta Bienkowska and commission vice president Jyrki Katainen. During the talks, he also is expected to raise concerns over unfair steel imports with EU trade commissioner Cecilia Malstrom.
He said he wants to see steel brought to the top of the EU agenda.
"We cannot stand by while the steel industry across Europe, not just in the UK, faces such unprecedented challenges," Mr Javid explained.
"The government wants to work with the EU and our European partners to do all we can to support our steel industry," he added.
Compensation for energy-intensive industries
High energy costs have been a problem for the steel industry and the government has said that Mr Javid has had positive talks with the competition commissioner regarding a compensation scheme for energy-intensive industries.
The scheme is currently awaiting EU state-aid approval and is expected to be introduced in April. However, the government says it is hopeful of movement on the issues within weeks and that means it could be introduced earlier.
Workers from some of the largest steelmaking communities like Teeside, Lincolnshire, Yorkshire and south Wales are planning to lobby MPs at Westminster on Wednesday. The main steel union has also called for a meeting with the government to discuss the ongoing threat to jobs.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.