As the traditional summer slowdown approaches, the UK steel industry remains cautious despite some positive signs. MEPS International's July report highlighted ongoing challenges, with demand for steel below expectations due to high interest rates and earlier political uncertainty.

However, optimism arose in early August as the Bank of England lowered interest rates for the first time since the pandemic, potentially signaling economic improvement.

The Labour Party's commitment to a £2.5 billion investment in steel as part of the National Wealth Fund (NWF) also bolsters confidence. Renewable energy projects, such as offshore wind, are expected to drive significant steel demand. However, the UK Steel Association remains uncertain about sustained price increases and demand growth, particularly with the seasonal slowdown in the fourth quarter looming.