According to the Institute for Energy Economics and Financial Analysis (IEEFA), to avoid the closure of the two blast furnaces at Scunthorpe, which would end primary steel production in the UK, the UK government has taken over British Steel.

IEEFA's experts believed the crisis that British Steel is facing at the Scunthorpe plant may be an opportunity, as the beginning of widespread concerns that the UK may become the only G7 country unable to produce primary steel (steel made from iron ore) and can only rely on electric arc furnaces (EAFs). However, IEEFA said that with the right policies, the UK can take this opportunity to move away from the coal-dependent, highly polluting blast furnace process and lay the foundations for a modern, low-carbon steel industry that is competitive in the low-carbon era.

IEEFA also said that the view that the UK cannot decarbonize its steel industry without a direct reduction iron (DRI) plant and a limited number of steel products can be made by recycling scrap steel through EAFs is becoming outdated. Instead of building domestic DRI plants, the UK could focus on modern EAFs and import iron raw materials from countries with clean energy and low electricity costs.