Port Talbot Steel
Asked Apr 25, 2016, 05:18 PM
On the current struggle of Port Talbot steelworks, and the crisis of British Steel -while closure seems to be looming that would bring economic downturn to a whole region, let alone the domsetic industry, there have been a number of solutions on offer.
My question is, if the buyout consortium is seeking to convert the steelworks to recycling scrap steel (which is claimed to have lower demand than fresh-forged steel), but fresh production is has purely lost profitability due to Chinese steel, would it not be economically viable to lease the plant to the consortium for a medium-term lease to produce scrap steel until perhaps the Chinese operation slows, or is tarriffed by the EU, at which point steel production could again be profitable, as opposed to losing the plant perminantly and damning the area and the industry to recession?
Apologies for the long-winded structure; any opinions and facts would be greatly appreciated (steel price trends, views on Chinese steel production and EU tariffs) most welcome