British Steel lost £700,000 daily last year when its Chinese owner, Jingye, planned to shut the Scunthorpe steelworks. After Jingye refused support to buy raw materials, the UK government stepped in with emergency laws to take control. Now, the cost to the government is more than £1.2 million a day. The government has spent £359 million so far, but the bill may rise. The future of the blast furnaces, rolling mills, and 4,000 workers remains unclear. Analyst Jon Carruthers-Green said, “In the short term, they are going to cost, so that £350m number is going to get bigger.” The UK steel industry’s output has dropped from 28 million tonnes in 1970 to only 2.5 million tonnes last year, the lowest in over a century. Jingye bought British Steel in 2020 but still owns it legally. Jingye may want up to £1 billion for giving up ownership, unlikely for a loss-making plant. The government gave a £120 million grant in 2022 to avoid a major economic shock in Scunthorpe. Officials fear that taking full control might deter foreign investors and cause diplomatic issues. Recently, Labour leader Keir Starmer visited Beijing with no progress. The government aims to find another owner to keep producing at Scunthorpe. There is a plan to merge British Steel with Speciality Steel UK (SSUK), which uses electric arc furnaces (EAFs). This shift could cut carbon emissions and keep some jobs but may cause conflict with unions. Union leader Alasdair McDiarmid said, “Our members on site have tolerated more than enough uncertainty, and want to see a cogent strategy in place for the business.” Building new electric furnaces will take years and fewer workers are needed, risking job cuts. The government may have to drop its pledge to keep making steel from iron ore, as EAFs use scrap steel. Experts warn that relying on foreign suppliers could be risky in conflicts. A government spokesperson said, “This government is determined to support British steelmaking and our steel communities now and for generations to come.” The steel strategy will be published this year. One possible buyer is US investor Michael Flacks, who surprised officials but lacks steel experience. Others have shown early interest. Analysts say any buyer would want the plant fully supported by the government. It may take four or five years before British Steel returns to private hands, keeping the government in control for some time.