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workingpoor

Uk Steel Industry Devastated 5300 Job Losses

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The dominoes are falling fast now, steel price down 40% i'd say the steel making in Britain won't survive.

http://news.sky.com/story/1572282/steel-crisis-worsens-as-1800-jobs-threatened

Hundreds more UK steel industry jobs are set to go as the axe falls on 20 sites across the country.

UK-based steel firm Caparo is the latest victim of the global steel crisis as it is set to enter administration.

Today's announcement looks set to bring the total recent job losses related to the steel industry to 5,300 after redundancies at Redcar, Scunthorpe and Scotland earlier this month.

The company, which is owned by Labour peer Lord Paul, produces a number of steel products.

Due to overcapacity in the Chinese market the price of steel has fallen by 40% from around £318 a ton to under £191 in the past year, meaning that domestic firms are no longer able to compete.

Sky sources have said that administrator PwC is looking for buyers for the business, but prospects are bleak given the failure to find a buyer for the Redcar steel works.

Caparo Industries reported a £0.8m operating loss in 2014, down from a profit of £3.1m in the prior year.

Angela Eagle, shadow business secretary, said: "This is a further blow to the steel industry which is now on its knees, and my thoughts are with the employees of Caparo who are facing uncertainty over their future.

"The industry needs urgent action from the Government, however this Government seems content to let the industry fail".

Edited by workingpoor

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Celsa steel is next i think crossrail /London high rise development is the only things keeping it going at this moment in time

Talk of the major steel manufacturer importing slab from china to process in the UK as they will save more from carbon tax by not making steel than they stand to make from making this steel at these prices

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This means that China is now exporting 100 million tons of steel per year at prices which are below the Chinese cost of production, let alone the costs associated with UK steel production.

The majority of Chinese steel-makers are currently loss-making, with very few mills refusing to cut production and even fewer considering shut down.

Trade wars anyone ? the yanks will be first....o wait they they have already started with Tubes

Viva recovery

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If we can buy steel from the Chinese for less than it costs us to process why don't we just buy gazillions of £ worth and stockpile it. Free money in years to come :)

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Like oil, the producers that can are working to sell by growing market share rather than by selling at a high price....undercutting, more sales, narrower margins......big firms have been doing that for years to small traders, who with fixed costs and overheads are unable to compete?

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Like oil, the producers that can are working to sell by growing market share rather than by selling at a high price....undercutting, more sales, narrower margins......big firms have been doing that for years to small traders, who with fixed costs and overheads are unable to compete?

No Chinese government supporting their industry ,it`s now illegal to do so in Europe due to European rules

If we can buy steel from the Chinese for less than it costs us to process why don't we just buy gazillions of £ worth and stockpile it. Free money in years to come :)

That's a very good question ,as we can now buy it from the Chinese for less than it costs the Chinese to produce it

Haven't been there for a while but have been told Llanwern is fast becoming a storage/stockpiling facility how much of this is home produced or imports i have no idea but ta ta have started to processing Chinese slab/steel

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The dominoes are falling fast now, steel price down 40% i'd say the steel making in Britain won't survive.

http://news.sky.com/story/1572282/steel-crisis-worsens-as-1800-jobs-threatened

Hundreds more UK steel industry jobs are set to go as the axe falls on 20 sites across the country.

UK-based steel firm Caparo is the latest victim of the global steel crisis as it is set to enter administration.

Today's announcement looks set to bring the total recent job losses related to the steel industry to 5,300 after redundancies at Redcar, Scunthorpe and Scotland earlier this month.

The company, which is owned by Labour peer Lord Paul, produces a number of steel products.

Due to overcapacity in the Chinese market the price of steel has fallen by 40% from around £318 a ton to under £191 in the past year, meaning that domestic firms are no longer able to compete.

Sky sources have said that administrator PwC is looking for buyers for the business, but prospects are bleak given the failure to find a buyer for the Redcar steel works.

Caparo Industries reported a £0.8m operating loss in 2014, down from a profit of £3.1m in the prior year.

Angela Eagle, shadow business secretary, said: "This is a further blow to the steel industry which is now on its knees, and my thoughts are with the employees of Caparo who are facing uncertainty over their future.

"The industry needs urgent action from the Government, however this Government seems content to let the industry fail".

Looks like they are going into administration according to the six o'clock news Tredegar and Wrexham

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Totally predictable.

Steel making in the UK has been dying since the 80s. A series of buyouts buy Mittal and others only delayed the death.

indian steel in the 90s and early 2000s. China selling for peanuts is the reason today.

Still, we'll sell them our services. That's the future.

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If we can buy steel from the Chinese for less than it costs us to process why don't we just buy gazillions of £ worth and stockpile it. Free money in years to come :)

Assuming their production costs don't fall, i guess. or its found even cheaper to manufacture in Africa or somewhere.

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I assume there is a time limit that Tories have before the 5300 switch from being hard working to feckless scroungers?

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I assume there is a time limit that Tories have before the 5300 switch from being hard working to feckless scroungers?

No time limit.

Those who head south to find work as window cleaners or baristas in 2nd rate coffee shops will be "strivers".

Those who stay in their communities and with their families will be vilified by the govt, right wing press and assorted tv documentaries.

It's Germinale (by Emile Zola) , fast forwarded 150yrs.

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To hell with the neolib globalisation agenda. Quotas and tariffs are what's needed to prevent the Chinese dumping their excess production on global markets. Quotas and tariffs!

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Maybe they could all open up finance arms, run up massive loan books and get a bailout? The only essential industry left seems to be the debt manufacturing business.

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This sort of situation is where they all give the game away.

The likes of Cameron and Osbourne.

Surely this industry should be considered to be of strategic importance to the country???

Steel may be cheap now due to imports but how long will it last? Roughly as long as it takes to destroy our steel industry?

But do they step in to help...do they hell.

They dont give a stuff about the country they are elected serve.

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Just heard the Cameron audio clip from PMQs on this. Poor performance. And at the same time as the China politicians visiting and UK begging for investment.

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Just heard the Cameron audio clip from PMQs on this. Poor performance. And at the same time as the China politicians visiting and UK begging for investment.

Oh how the mighty have fallen.

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This is a direct product of the low interest rate environment and Chinese insiders running carry trades using commodities as financing (it bypasses the currency restrictions). Since it is a direct product of central bank policy quotas, tarrifs and restrictions are ENTIRELY appropriate.

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To hell with the neolib globalisation agenda. Quotas and tariffs are what's needed to prevent the Chinese dumping their excess production on global markets. Quotas and tariffs!

Just get rid of the dumb carbon trading system which is effectively offshoring steel and other energy intensive industries.

Does anyone know if similar administrations are taking place in other EU countries?

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Just get rid of the dumb carbon trading system which is effectively offshoring steel and other energy intensive industries.

Does anyone know if similar administrations are taking place in other EU countries?

France are in the same boat with their steel industry too, overcapacity all round. Edited by workingpoor

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