Nationalise Port Talbot?

[Honky Tonx]

I suppose the government could do something like this in relation to the Chinese steel industry

https://www.youtube.com/watch?v=AQ8HjDRrHt0

 

[ditchy]

Would it not be better for the UK to insist that British made steel is used on major build projects like HS2 . This i guess clashes with EU competition laws , but hey ho !

 

[happypig]

In a few years, when we have no steel industry, the Chinese are going to say "that steel we were charging you $50 a tonne for in 2016, we now want $150 a tonne because we know you can't make your own".
And we'll have to bend over and take it.
Not propping it up is dogmatic lunacy.

 

[Bold Seagull]

In a few years, when we have no steel industry, the Chinese are going to say "that steel we were charging you $50 a tonne for in 2016, we now want $150 a tonne because we know you can't make your own".
And we'll have to bend over and take it.
Not propping it up is dogmatic lunacy.

As you say, short term economic decisions with massive long term consequences.

 

[severnside gull]

4000 or 5000 jobs is just collateral damage to this government's two-nation ethos.
Add to that they can blame most job losses on the Welsh Assembly and you can guarantee fair words aplenty but little in the way of action

 

[Herr Tubthumper]

You make an essential point though about profitability - is that the only measure of the importance of an industry or service?

For some yes, it is, sadly.

 

[easynow]

Would it not be better for the UK to insist that British made steel is used on major build projects like HS2 . This i guess clashes with EU competition laws , but hey ho !

The UK gets one major megaproject every 50 years because of nimbys haha

 

[Tubby Mondays]

Why should the tax payers of this country buy a loss making or non profitable industry?

If you're going to invoke 'tax payers'; at least put the words 'hard working' in front of them!

Its the law!

 

[Tubby Mondays]

It would be better to spend the money to ease the transition of the workers into new industries.

Such as?

Britain doesnt do industry anymore.

 

[easynow]

Such as?

Britain doesnt do industry anymore.

What does Britain do then?

 

[dazzer6666]

I'm a sheet metal worker. The problem with Tata is that they make crap steel. A lot of our suppliers now source from China because Tata had some quality issues with their coils.

I was folding a job only a month ago and the material kept splitting, it's not supposed to. Was traced back to Tata plant at Port Talbot.

If you make sub standard steel, buyers will notice and buy from elsewhere. We try and actively avoid Tata where possible.

Nub of the issue ? Rubbish product being produced at high cost = unsustainable business

I'm out.

 

[Lord Bracknell]

Huge chunks of the UK rail industry and the UK electricity industry are state owned. It's just that the state that owns these chunks of UK industry isn't the UK.

 

[Leekbrookgull]

Would it not be better for the UK to insist that British made steel is used on major build projects like HS2 . This i guess clashes with EU competition laws , but hey ho !

Not after June 24th.

 

[Thunder Bolt]

Sheffield survived when all the steel mills closed due to cheap Spanish imports. Nobody liked it but it happened.

 

[darkwolf666]

If cheap Chinese steel is to blame, pay British steel workers the same as their Chinese counterparts and reduce the cost of British steel

I take it that was a tongue in cheek comment or maybe just crass stupidity?

It is difficult to find exact info, but the best I can find is that Chinese steel workers may earn up to $330 a month, approximately £230 - let's see the good men (and women) of Port Talbot live on that, shall we?

 

[darkwolf666]

Not after June 24th.

Hhhmm, not being part of the EU doesn't appear to have much of an effect on China's ability to trade worldwide...

 

[darkwolf666]

Huge chunks of the UK rail industry and the UK electricity industry are state owned. It's just that the state that owns these chunks of UK industry isn't the UK.

Brilliant - like selling the Dartford Crossing to the French and re-branding it Le Crossing as happened previously!

Or 4 of the Big 6 utility companies being owned by French, German and Spanish companies.

We are selling all our industry to the cheapest buyer or allowing it to fail - ultimately we will all work in service industries or McDonalds!

 

[Bold Seagull]

Hhhmm, not being part of the EU doesn't appear to have much of an effect on China's ability to trade worldwide...

Interestingly though, does the EU have greater clout to negotiate their steel price collectively? If we are on our own relying on China's steel prices, could we be held to ransom if we are such a small consumer compared to the other markets?

 

[beorhthelm]

Interestingly though, does the EU have greater clout to negotiate their steel price collectively? If we are on our own relying on China's steel prices, could we be held to ransom if we are such a small consumer compared to the other markets?

no. the most the EU can do is raise tariffs (well they could impose outright restrictions but then WTO rule problems). and in this case simply raising tariffs on Chinese imports would not increase the price of domestic produce as the world market would still be suppressed, while increasing the cost base for anyone with a supply contract from China. further, it would not address the problems of manufacturing and overhead costs at Talbot and other plants.

 

[darkwolf666]

Interestingly though, does the EU have greater clout to negotiate their steel price collectively? If we are on our own relying on China's steel prices, could we be held to ransom if we are such a small consumer compared to the other markets?

Thing is here it is more about China flooding the market with extremely cheap steel. I guess your scenario will come about when China has killed off all the opposition, then they can charge what they like, then it would get interesting!