THE UK’s battered steel sector will be rocked further by the Brexit, an industry organisation has warned.

UK Steel says the Government, itself shocked by David Cameron’s resignation, must finally deal with imports and energy costs to give companies a chance after the EU referendum.

Steel operators have struggled against lower prices, Chinese imports and higher running costs, and last year, Redcar’s SSI UK fell into liquidation as the pressures became too much to bear.

The business’ collapse caused thousands of job losses and concerns also remain over Tata Steel’s Hartlepool pipe mills.

That operation employs about 600 people but is part of a sell-off by the Indian steelmaker as it seeks to cut financial losses.

Tata’s Long Products division, which has 900 staff across the North-East and York, was previously bought by investor Greybull Capital, which said it will give the business a brighter future.

However, Gareth Stace, director of UK Steel, the trade association for the sector, said the Brexit vote could set the industry back years.

He said: “The decision will send shockwaves across the industry.

“Our sector is well versed in having challenges thrust upon it, but it’s clear this is like no other.

“It is now more essential than ever to create the right business conditions in the UK that allow the steel industry to survive, invest and thrive.

“The Government now needs to finally tackle head on the uncompetitive electricity and policy costs that have historically hindered the growth of steel producers and seen thousands of high-skilled jobs lost.

“We need to see all major projects, from HS2 to Hinkley Point to airport expansion, using British steel.

“The Government can now match words with actions and take the lead in dealing with subsidised exports, most notably from China, which are slowly destroying steelmaking in the UK.

“It must come up with clear and concrete actions to ensure we can still trade with the EU, while ensuring trade tariffs have the teeth to guard against dumping of Chinese steel.”