British Steel

Discussion in 'News and Current Affairs' started by Tanis8472, 22 May 2019.

  1. Illaveago, C R and Adam4868 like this.
  2. perplexed

    perplexed Guru


    Edit: 2030
    Last edited: 22 May 2019
  3. DCLane

    DCLane Found in the Yorkshire hills ...

    Technically no government donations could be given. They could have bought it, and someone still may.
    Illaveago and Fab Foodie like this.
  4. classic33

    classic33 Legendary Member

    Been downhill for them, almost since being bought in 2016.
    Cycleops likes this.
  5. Rusty Nails

    Rusty Nails We remember

    Here and there
    keithmac, derrick, Brains and 2 others like this.
  6. stowie

    stowie Guru

    Anti-dumping tariffs have been imposed by the EU on Chinese steel. Interestingly, a move to increase these tariffs in the wake of US tariff increases was resisted by our own government. It has to be said that, although that sounds a bad decision for UK Steel (and probably is) a government needs to balance this with the increase in import costs for the businesses buying foreign steel as well.

    From what I can see, China is generating a surplus of steel in the market. The US has imposed tariffs on UK steel. This industry therefore had significant challenges. Then a no deal Brexit looms up within their production lead-time timescales and EU orders dry up. Plus the owners of British Steel commitment to the business seemed to go no further than extracting as much as possible from it in the shortest possible time.

    In terms of government support being illegal under EU rules (as Richard Tice asserted) - it is difficult to know since the proposed terms of any bailout is not public knowledge, but the government had already pumped many millions into the business quite recently, and bailouts of industries deemed of strategic importance has happened in the recent past, so it wouldn't seem impossible to do so. How much the lack of willingness of the government to provide more funds is legal or ideological will never be certain - all sides have reason to spin it in either direction.
  7. classic33

    classic33 Legendary Member

    Same two people behind Monarch & Comet when they went under.
    Illaveago, uphillstruggler and tom73 like this.
  8. Milzy

    Milzy Veteran

    The EU warned us all about cheap steel from China & Britain replied with

    “Yay!! Cheap steel!”
    screenman likes this.
  9. stowie

    stowie Guru

    Yep. If I wasn't such a trusting person, I might suggest that there is a pattern to their investments...
  10. SkipdiverJohn

    SkipdiverJohn Über Member

    This is what happens to the competitiveness of UK industry when you join an organisation with bureaucratic rules and a tree-hugger agenda designed to create high energy prices. To all the Remainers out there; enjoy the "benefits" of EU membership and having to abide by EU regulations. Industries go down the pan and people lose their jobs.

    Alternatively, we could have told the EU to shove their carbon trading scheme where the sun don't shine, kept UK energy costs as low as possible, cut all the other red tape BS, and British Steel would have probably remained a solvent entity.
    keithmac likes this.
  11. Duffy

    Duffy Well-Known Member

    Yeah but they’d want cut wages, have ‘flexible’ zero hour contracts, dump all of their shoot, untreated, into the nearest river and then the profits would go to their wealthy investment fund owners.

    That’d be great too wouldn’t it?
    perplexed, Mr Celine, lane and 5 others like this.
  12. classic33

    classic33 Legendary Member

    Owners were French, not british. They appear to have tried to use a company name that was known for better products. Tata Steel had control prior to splitting the company.
    Illaveago and Andy in Germany like this.
  13. RecordAceFromNew

    RecordAceFromNew Swinging Member

    West London
    Would you care to provide some figures to justify your view?

    Your assertion is not consistent with that of the UK steel trading body:
    "UK Steel, the trade body, estimates that a 'no deal' Brexit would result in quotas or duties in markets accounting for 97% of UK steel exports - up from 15% at present - which, with nearly half of all steel in this country being exported, would bite. It is hard to see how, ultimately, steelmaking in this country can survive such headwinds in the long run."

    The article also refers to the fall in £ after Brexit being a "key factor" for the current woe - iron ore is priced in $, which meant the price of the raw material has increased by over 15% since FY 2016/17. If you had read British Steel's accounts, you would have found that represents a c£100m p.a. hole in their profit and loss, above and beyond the uncertainty of Brexit which has caused European orders to dry up.

    Think this is a classic example of "Brexit dividend", used to be called Project Fear, I believe.
  14. So eloquently put.
    Thank you gentlemen :okay:
    screenman and Andy in Germany like this.
  15. You know how, about a year ago, we said that this sort of thing would happen and Brexit Supporters said it was "Project fear"?

    Several people asked what they'd say when it actually happened, and the more cynical replied "They'll just blame the EU"

    Well, now you see it folks.
    perplexed, mustang1, lane and 7 others like this.
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