Sky's economics editor Ed Conway explains the demise of the steel industry in the UK.Here are two surprising facts which between them help explain why the UK steel industry seems to be in what looks like a permaslump.
The European Union has tariffs and anti-dumping rules which are designed to prevent this wave of steel from flooding its markets, but such a massive surge in production has posed a massive challenge for British producers, who struggle to compete on price and quantity. And in one respect you'd be right: today overall UK economic output is around 77% bigger than it was in 1990; the output of the steel industry is around 46% smaller.
For all its image as a failing sector, the steel industry produces more bang-for-buck than most other parts of UK plc.
Problem is we have assisted with money to keep it afloat whilst in the rest of the world, especially China, they have invested in improving and streamlining processes in new facilities. We can’t keep up with antiquated equipment & punishing levies from government.