Why the UK steel industry is facing another fight for survival

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Sky's Ian King explains the pressures on the steel industry in the UK, as British Steel goes cap in hand to ministers.

First came news last week that Indian-owned Tata Steel, the country's biggest steelmaker, mustwith those of German giant Thyssenkrupp after the European Commission indicated it would block the deal.

British Steel had more allowances than it needed for the expected CO2 emissions produced by its UK operations. Greg Clark, the Business Secretary, gave the group a £100m loan, telling the House of Commons that the company was facing a fine of £500m as well as an estimated bill of £120m buying the carbon permits it needed.The group's latest plight will raise questions about the underlying strength of the business.

Just before Christmas 2017, meanwhile, British Steel slipped out news that Peter Bernscher, its chief executive, had quit after differences of opinion with the owners. Higher energy costs - British steel producers, due mainly to environmental charges, pay substantially more for their electricity than their counterparts in Germany or France - and the higher price of carbon permits are also adding to the burden.According to the World Steel Association, world steel production during the first three months of the year was 444.1 million tonnes, up 4.5% on the same period in 2018. Yet global steel demand is not growing nearly so rapidly.

 

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Make Britain Great again take a leaf out of President Trumps Book.

We are still in the Eu and are expected to have shut it down completely by now, as promised by ted heath in 1972.

That mark kleinman is hard work to listen too. Gawd

Everything is survival in the UK. We are all surviving. Know idea how we built an Empire. This country has fallen apart completely. It is a disgrace

Carbon permits who comes up with these schemes ffs

The UK has a steel industry

Cos there's nobheads running it

A massive problem initiated by favouritism in EU and snub to UK

Because the politicians won’t rest until it is dead. Just like they won’t rest until they keep us in the EU.

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