British Steel, owned by China's Jingye Group since 2020, had warned in March it could shut its two blast furnaces as soon as June after it failed to agree with the government a funding deal to switch to a greener type of steel production.
British Steel has said it is losing 700,000 pounds ($A1.5 million) a day, hit by years of high energy prices and compounded by US tariffs of 25 per cent on all imports of steel which took effect in March.
UK finance minister Rachel Reeves, asked about nationalisation, told reporters earlier on Friday that all options remained on the table for British Steel, whose Scunthorpe, eastern England-based plant, employs about 3000.
"We recognise the importance both to Scunthorpe for the jobs and community there but also for our national economy, to maintain the capacity to make steel in Britain," Reeves said.
The House of Commons declined to comment when asked by Reuters about the recall of parliament.
The lower chamber of parliament, the House of Commons, had been scheduled to be in recess for an Easter holiday until April 22.
While it can be recalled to sit during recess, it only tends to happen rarely and in extraordinary circumstances, for instance, in August 2021 to discuss the withdrawal of troops from Afghanistan.
16°C