UK Steel director general Gareth Stace said the government should make “competitively priced electricity” available to companies such as Tata Steel.
The UK government said it had a scheme for reducing energy prices for steelmakers, and had committed £2.5bn to support the industry.
“As the steel sector in the UK moves to fully electric arc furnace, and therefore using an enormous amount of electricity, having competitively priced electricity is critical to the success of our future,” said Mr Stace.
He said the government should use some of its £2.5bn fund to drive down the cost of electricity for steel producers.
“What we’re asking for here is not the cheapest in the world, but we want our electricity prices to be the same as they are in France and Germany, where our main competitors are,” Mr Stace added.
UK Steel also wants the government to buy more steel from the UK for major projects and reduce its use of imported steel. The organisation, whose members include the major steel producers, also wants commitments from ministers about future investments in new steel facilities.
A Department for Business and Trade spokesperson said: “We are already bringing energy costs for important UK industries like steel closer in line with other major economies through the British Industry Supercharger, which will see them remain competitive on the world stage. And through Great British Energy this government is speeding up the transition towards cheaper, homegrown clean power.
“We’re also working in partnership with trade unions and businesses to secure a green steel transition that’s right for the workforce and safeguards the future of the steel industry in Britain. We’ve committed to £2.5 billion of investment to rebuild the UK steel industry and support communities for generations to come.”
Tata Steel, trade unions and Labour politicians have all called for government support to build the technology that would allow steel plate for wind turbines to be produced in south Wales.
Welsh Conservatives said Labour had “come to its senses” and the best deal remained that negotiated by the previous Tory UK government.
Shadow Welsh Secretary, Lord Davies of Gower said: “I urge the Labour UK government to now turn its attention quickly to ensuring financial aid reaches the affected workers without any delay.”
Mr Stace said: “For us to be able to supply the future offshore wind sector in the UK, we probably need a wide gage heavy plate mill in the UK.
“Now, that will cost a few hundred million pounds, but we want to get it right. So we need to sit down with government and work out where that investment is best spent.”
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