UK steel sector wants/needs/deserves more government help, Kallanish survey finds
In its flash survey of the UK steel sector, Kallanish has found that 95% of respondents think that the whole domestic sector is in crisis, not just the troubled SSI UK plant in Redcar.
Those who commented presented a raft of different reasons for this, blaming variously the strength of sterling, an inadequate domestic manufacturing base, cheap steel imports and globally depressed steel markets. “The crisis is solely about spread,” one commentator says, “with raw material costs being paid for in dollars and the £ v $ not giving any benefit… with the £ also being strong against the € this brings cheap imports and makes exports more costly.”
In answer to the question, “How do you currently see the UK steel market?” 50% of those who replied agree that the UK needs a strong and competitive national champion. And, more directly, some said that the UK government should help. “This could mean a period of public ownership,” one respondent suggests, “as with RBS [… bank] or East Coast mainline [… rail].
The question which received the most comments concerned the measures required to improve prospects for the UK steel sector. Cheaper energy was the most popular suggestion, followed closely by tax reduction, the introduction of import duties, and more investment. Only one commentator in fact saw no future for steel in the UK, blaming “… decisions taken over the past 20-35 years” but without specifying which decisions taken and by whom.
The ultimate question of whether the UK government should get involved produced an 85% “yes” response. Again, those who answered positively focussed on help in the areas of taxation, energy costs and assistance with carbon levies.
In an obvious sideswipe to a perceived lack of representation in Brussels for its steelmakers by the UK government when compared to other countries in the EU, one wag answered “Send more Italians…” It would be an amusing comment if the situation was not so intensely unfunny, Kallanish observes.
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Anonymous
Very good overview of the weekly steel market.
Anonymous