The collapse in the global steel price caused by the increase in Chinese exports into Europe coupled with slow demand puts the UK steel industry at great risk. The UK steel industry experienced one of its toughest moments as Tata steel, owner of the country’s biggest steelworks, confirmed plans to sell all of its current UK operations. This move would be a consequence of the large investments placed on the UK plants followed up by big losses in the market, as Port Talbot is understood to be losing more than £1m a day.
Tata’s priorities to focus on the domestic market in India were discussed on Tuesday, when the board of Tata met in Mumbai. The business minister, Anna Soubry, and other officials such as Jeremy Corbyn made it clear that in these crucial moments it is for the government to safeguard the industry and the jobs by preventing plants from closing. From the solutions that might be brought by the government, the most preferable one seem to include a deal with the commodities investor Liberty House. The survival of other plants in Scotland was possible under the ownership of Liberty House. Additionally, Greybull Capital is currently in talks with the government over a commercial loan for the costs of rescuing the steelworks.