Steel crisis grows as Tata confirms 1,200 job cuts – as it happened
Tata jobs to go in Scunthorpe and Scotland; one in six UK steelworkers face redundancy
5.31pm BST
We are wrapping up for the day. Thank you for all your great comments, and we'll be back tomorrow.
5.11pm BST
The Chinese president, Xi Jinping, has lauded the close ties between his country and Britain during a speech to the UK parliament. It is the first full day of his four-day state visit to Britain, aimed at boosting trade.
It is fair to say that China and the UK are increasingly interdependent and are becoming a community of shared interests.
I am already deeply impressed by the vitality of China-UK relations and the profound friendship between our peoples."
4.32pm BST
About half of the 1.6bn tonnes of steel made globally comes from China, and firms operating in the UK simply can't compete, says Guardian contributor Karl West. He writes:
The latest grim chapter in the long, slow death of Britain's steel industry may have been decided in India, but it was scripted in Beijing.
4.22pm BST
Just to recap, the UK's foreign secretary, Philip Hammond, has indicated that the government won't press the Chinese president, Xi Jinping, too hard on the "dumping" of steel.
Hammond told the Today programme on BBC Radio 4:
We have got to get the balance right: trying to protect our steel industry in a sensible way, which we are doing, but recognising that we are operating in a global economy. We can't simply build a wall around the UK."
3.21pm BST
Govt to China: "Invest in UK. It'll make you money" Govt to itself: "Don't invest in UK. Cut, add more austerity, let steel industry die"
3.18pm BST
Guardian contributor Karl West has sent us this:
The management team at Tata Steel's Scunthorpe steel mill are eyeing a buyout of the loss-making plant, according to sources.
2.32pm BST
Outside Dalzell steel works in Motherwell https://t.co/QaQmVpEVd2
2.16pm BST
More from Libby Brooks, who has been speaking to Tata workers in Motherwell:
John McKenna, who worked at Ravenscraig before joining Dalzell eight years ago, said that he was 'disappointed' at the news. "I'm disappointed they've decided to treat us this way. I think there's definitely a future if someone is in their right mind to take this on. There's a good workforce here. There's a future is the government wants to make it that way."
2.01pm BST
Another Tata executive has been speaking. After talking to workers in Scunthorpe, Bimlendra Jha, executive chairman of the Long Products Europe business, said (quotes from PA):
"These are very distressing times.
1.48pm BST
Tor Farquhar, human resources director for Tata Steel Europe, has been taking questions outside the Motherwell plant.
He says that this is a very difficult day for the company and workers: "This is the worst news you can ever give your employees."
1.45pm BST
Local Labour MSP John Pentland has also called on the Scottish government to act, writes Libby Brooks: "The Scottish Government can intervene and support strategic assets when they are threatened, as it has shown several times. It acted when Prestwick was threatened; it acted when Fergusons was threatened; it acted when Grangemouth was threatened; and it can act again, to save our steel industry."
Pentland also said that it was "shocking" that the new Forth crossing project was being built with overseas steel, including steel manufactured in China.
1.44pm BST
Despite Sajid Javid's repeated proclamations that prime minister David Cameron will raise the issue of steel dumping with Chinese president Xi Jinping, there seems some doubt as to how strong the protests will be. Our political correstpondent Rowena Mason writes:
David Cameron's spokesman will not reveal how strongly he is prepared to object to China's steel-dumping in his meetings with Xi. She would only say he will "raise" the matter and discuss how the actions of one country can impact on another. There is little sense that he plans to complain forcefully about China's behaviour.
1.28pm BST
Lib Dem Greg Mulholland: all concentration on Chinese visit is on banking, will issue of steel be raised
Javid: there will be an announcement of 20bn of business deals with China which I;m sure he will welcome.
1.26pm BST
Labour Ian Lucas: how big should industry be for strategic reasons, how retain capacity
Javid: we've seen a steady decline in capacity, need to supply more stability so they can plan for future.
1.25pm BST
Labour Phil Wilson: problems with supply chain, how than they be helped
Javid: number of good suggestions from summit. Will be working with industries using steel to see how can hard wire requirement for British steel in their products.
1.22pm BST
Labour Angela Smith: inexcusable minister won't commit to a long term strategy for industry, for steel
Javid: Steel summit on Friday did discuss strategy. Since then, already set up metal strategy which steel is a major part.
1.21pm BST
SNP Margaret Ferrier: Must do everything we can for the workers. Welcome action by Scottish government to set up taskforce. But what will UK government do, about dumping, high energy costs?
Javid: We will support Scottish task force. Must do all we can for workers and families.
1.17pm BST
Labour Tristram Hunt: China needs to know, we are more than just a theme park. What talks is he having, when will he stand up for Britain
Javid: there will be further announcements which will help sustain jobs. Prime minister will discuss whole issue of unfair trade.
1.16pm BST
Conservative Jeremy Lefroy: Steel is vital national industry. No point in buying cheap steel which will have problems later
Javid: right to raise this point. We will be looking very closely at this.
1.15pm BST
Labour Tom Blenkinsop: EU partners have taken action against Chinese dumping.
Javid: For first time ever, a British government supported duties by EU and will take further action when evidence is there.
1.13pm BST
Conservative Peter Bone: let us put in place what we think is right and worry about what EU thinks afterwards.
Javid: Understand point, but rules on unfair state aid etc exist to protect British manufacturers as well. Need to have clean hands if we complain about others violating rules.
1.12pm BST
DUP Sammy Wilson: Problem partly also green energy policies which have pushed up costs.
Javid: right to raise this issue, energy costs are high, some of them are imposed directly some through EU policies. Are paying compensation, want to pay more, so want EU approval as soon as possible.
1.10pm BST
Labour Andy McDonald: has he pursuing anti dumping initiative
Javid: we have started taking action, voted at EU, it is an EU led process, we have provided evidence where he have it.
1.04pm BST
Conservative Stephen Hammond: how to make dumping not endemic?
Javid: we have been taking action, voted for it, will be pushing for action to be taken more quickly.
1.03pm BST
Labour Stephen Doughty: Why does secretary not go over to Brussels and sort out state aid?
Javid: Not in full control of UK government. It is a priority, and it is too slow. We are doing everything we can.
1.02pm BST
Conservative Martin Vickers: could we have more detail about the task force in Lincolnshire.
Javid: Task force just been set up. We need to listen to task force and local leaders. First meeting will take place tomorrow.
1.01pm BST
Labour's Nick Dakin said action must be taken now.
Javid said some of the actions require working with our EU partners, working as quickly as possible.
1.00pm BST
Javid:
It's a shame he [Brennan] wants to play politics.
12.58pm BST
Brennan:
Despite the rhetoric the government seems content to let the industry disappear in the face of Chinese dumping.
12.57pm BST
Javid is ticked off by by the speaker for exceeding his allotted time.
12.56pm BST
Business secretary Sajid Javid said the industry was facing unprecedented challenges, and the situation was devastating.
The situation is difficult and deeply worrying for workers. The government is doing and will continue to do everything in its power to support you in the weeks and months to come.
12.45pm BST
And now the urgent parliamentary question in Parliament from Kevin Brennan, shadow minister for trade and investment. Brennan said:
Will the business secretary make a statement about what action government taking to secure future of steel industry?
12.16pm BST
Describing the announcement as a crushing blow for the workforce, Grahame Smith, Scottish Trades Union Congress (STUC) General Secretary welcomed the decision to mothball the plants, and said that it was essential that the UK and Scottish Governments responded quickly to the crisis.
"The UK Government must work with the industry to prevent the unfair dumping of Chinese steel on the UK market and provide a package of support similar to those routinely provided by other European nations to their energy intensive manufacturing sectors.
12.04pm BST
Angela Eagle, shadow business secretary, said:
11.55am BST
UK Steel also points to the potential loss of vital national assets, including the ability to process the steel used in Trident submarines:
The Dalzell plant in Scotland has an array of processes which make it a very special facility which few, if any, in Europe can match.
11.51am BST
UK Steel, the trade association for the industry, has added to the calls for prime minister David Cameron to press the Chinese president on steel dumping during this week's state visit. Director Gareth Stace said:
"Our fears about further job losses have now been confirmed. If we are to stem this tide then the Business Secretary must now deliver as a matter of urgency the commitments he made at last week's summit, on energy costs, Business Rates costs and tackling unfair trade. In addition, we must also see a commitment from all parts of government at the highest level to ensure the sector's survival in the UK.
11.43am BST
Here's more detail from Libby Brooks in Motherwell on the comments from John Clark, Community rep for Dalzell.
He says that workers are still be briefed inside.
11.38am BST
In Scunthorpe, the Community union's McBean told PA: "If we all worked for nothing here we could not compete with the prices they're (the Chinese) are dumping it on our shores for.
"Let us compete with the rest of the world.
11.36am BST
In Scunthorpe, workers also said they were devastated by the Tata announcement, even though the news did not exactly come as a surprise. PA reports:
Paul McBean, from the Community union, said: "They are just devastated and I'm devastated too. We knew it was coming but it doesn't make it any easier.
11.34am BST
Union representatives at Motherwell described the job cuts as devastating, says Libby Brooks:
John Clark, Community rep: this is devastating for workers, we are placing our faith in the Scottish government pic.twitter.com/EpFlXLmBz3
Dalzell union rep: I absolutely think there is a future for steel making in Motherwell
Dalzell Union rep attacks David Cameron: he's putting the red carpet out for the Chinese president, but he should be making demands
11.13am BST
Here's the response to the Tata news from the Unite union, courtesy PA:
Unite assistant general secretary Tony Burke said: "This is a dark day for the UK steel industry, for the workers and the communities who livelihoods depend on steel. We will be working closely with Tata to find alternatives and to save as many jobs as possible.
11.02am BST
PA is reporting comments from Paul Kenny, general secretary of the GMB.
He said: "Only the UK Government acting with the EU can deal with dumping of steel and green taxes on energy prices. There has been no action.
"Look at the dismal record:
:: 16th July Tata Steel announce 720 jobs losses in Rotherham, Stocksbridge and Wednesbury. No action from Government.
:: 25th August Tata announce 250 redundancies in strip steel at Llanwern. No action from Government.
:: 18th September 2015 SSI announce 2,200 jobs at Redcar under threat. No action from Government.
:: 19th October steel firm Caparo in administration. No action from Government.
:: 20 October Tata announce 1,200 jobs to go in Scunthorpe and Lanarkshire. No action from Government.
"Parliament has to insist on immediate action on steel."
11.00am BST
I have been granted an Urgent Question in Commons on what action the Government is taking to secure the future of the Steel Industry?
Speaker has granted Labour urgent question in Commons on steel to Bis Secretary at lunchtime
Urgent Question in House of Commons on the future of the British steel industry granted to @UKLabour at 12.30pm.
10.58am BST
More from Libby Brooks in Scotland on the steel crisis:
Dalzell Steel and Iron Works opened in Motherwell in 1872 and by the first World War had become the largest steel works in Scotland, providing plates for the thriving ship-building industry on the River Clyde.
Once the steel production capital of Scotland, Motherwell was nicknamed Steelopolis and its skyline was once dominated by the gas holder and three cooling towers of the Ravenscraig steel plant. But the closure of Ravenscraig in 1992 signalled the end of large scale steel making in Scotland.
10.57am BST
As Bank of England governor Mark Carney and deputy governor Andrew Bailey appear at a Treasury select committe, another member of the Bank's monetary policy committee has been speaking on interest rates. Heather Stewart reports:
In a speech at Bloomberg this morning, Ian McCafferty, the one member of the Bank of England's monetary policy committee who has voted for an immediate increase in interest rates at recent meetings, warns his colleagues not to delay tightening policy for too long.
"If we on the MPC are to achieve our ambition of raising rates only gradually, so as to minimise the disruption to households and businesses of a normalisation of policy after a long period in which interest rates have been at historic lows, we need to avoid getting 'behind the curve'"
10.49am BST
Here's more detail from Libby:
A Tata Steel representative speaking outside the Motherwell plant confirmed that 270 jobs would be lost in Scotland, 225 from Dalzell and 45 from the Clydebridge works in Cambuslang.
10.42am BST
Our Scotland correpondent Libby Brooks is at Motherwell:
Tata steel rep outside Motherwell works confirms 270 jobs to go, 225 at Dalzell & 45 at Clydebridge ie all jobs gone, both sites mothballed
First minister @NicolaSturgeon will visit both steel works this Thursday as Scottish gov't established steel task force
10.39am BST
Hmm...
10.33am BST
The company said it would begin consultations with employees and their trade union representatives today. It added:
"Tata Steel's subsidiary UK Steel Enterprise will look at how it can provide more support to the local communities affected by today's announcement and help stimulate new job creation in those areas. Over the last four decades the company has helped to regenerate local economies with 88 million of support and created more than 75,000 new jobs across the UK."
10.31am BST
Tata said in response to the problems it face, it would be concentrating on "higher-value markets with a focus on developing stronger and lighter products for its customers."
Bimlendra Jha, Executive Chairman of the stand-alone Long Products Europe business, said: "Today's proposals mark the next step in reshaping our business to give it the best chance of survival in this fiercely-competitive global marketplace. We are looking closely at the performance of all parts of Long Products Europe as part of a focus on returning to profitability."
10.29am BST
Tata said the cut came "in response to a shift in market conditions caused by a flood of cheap imports, particularly from China, a strong pound and high electricity costs."
It said plate mills in Scunthorpe, Dalzell and Clydebridge would be mothballed while one of the two coke ovens at the Scunthorpe steelworks would be closed.
10.22am BST
BREAKING NEWS:
Tata Steel has confrmed that nearly 1,200 jobs will go in Scunthorpe and Scotland, the company said.
10.11am BST
Staff at Tata Steel in Motherwell have started to gather for a meeting at the plant. Announcement expected soon.
10.09am BST
Tata steel workers still waiting to hear if jobs are safe. Webcast with company bosses happening right now. pic.twitter.com/uQPgcTPhaT
10.06am BST
David Fagan of North Lanarkshire Council, told BBC Scotland:
We do need to at least ask Tata to slow down the process, work in partnership with all of the agencies that might be able to support this and look at any options that are there.
If that's not successful, North Lanarkshire Council will work along with key agencies including local colleges, the NHS, to provide support for workers moving into other forms of employment and we've a good track record in doing that.
10.04am BST
Workers at Tata's steel plants in Scunthorpe and Scotland are expected to hear their fates shortly.
If Indian-owned Tata cuts its plants at Dalzell in Motherwell and Clydebridge in Cambuslang, that would effectively end 143 years of steelmaking in Scotland.
9.50am BST
Eurozone bank lending continued at a steady pace in the third quarter, according to the latest survey from the European Central Bank.
Demand for mortgages remained high with a net 33% of eurozone banks reporting increased demand, albeit this was down from the record 49% in the second quarter.
Especially disappointing is the fact that there is no sign of an investment pickup: The net percentage of banks reporting higher loan demand due to increasing investment activity was little changed at 11%. Indeed, net lending growth to non-financial businesses amounted to only 0.4% year on year in August. The survey results suggest we need not expect a strong pickup in September or beyond, for that matter.
While the ECB claims that QE continues to support bank lending, the low rate-effect appears to be wearing off. The availability of low rates has become less important for households: a net 35% of banks report low rates as reason for households to take out (or refinance) a mortgage, down from 45% in the second quarter. For business clients, a net 19% of banks reported low rates as a motivating factor to borrow, down from 21% in the second quarter.
9.34am BST
China of course is very much bound up in the current steel crisis in the UK, accused of dumping cheap steel on the market.
So it is timely that Chinese president Xi Jinping is visiting the UK at the moment, with David Cameron and foreign secretary Philip Hammond both saying the issue of steel production will be raised.
Related: Xi Jinping visit: UK royal banquet prepared as MPs set to greet Chinese president - live
9.07am BST
Here's a graphic which shows one of the problems facing the steel industry:
8.56am BST
Other MPs are wading into the steel crisis.
Scunthorpe Labour MP Nic Dakin told Radio 5 Live:
Nobody's asking for subsidies here. What they're asking for is a level playing field. A level playing field on business rates, a level playing field on energy taxes compared with our european neighbours.
It's going to be very, very devastating. There is no way that we should be thrown on the scrap heap. These are well experienced, skilled workers. These people should be retained.
There could very well be intervention from the Scottish government.
The Government's handling of the steel industry crisis is a lesson in industrial inactivism - a complete lack of commitment. Disgraceful
Either you want to nurture and grow our manufacturing base or not - the Govt's handling of the steel crisis shows they aren't interested
8.31am BST
Foreign secretary Philip Hammond told Sky News that the issue of steel dumping will be raised with Chinese president Xi Jinping during his UK visit. Hammond said:
It's certainly one of the subjects that will be on the agenda, the steel industry. China is a very big producer of steel, as you would expect.
But there's a global over-capacity in the steel industry and that's caused prices to fall very precipitately over the last 12 months or so, and that's causing a problem around the world.
8.29am BST
Shares are struggling to make much ground in early trading.
The FTSE 100 is up just 5.4 points, with commodity companies once more weighing on the index on worries about demand in China, the world's second biggest economy.
8.25am BST
The UK needs a long term strategic plan for the steel industry, but the challenge for government is what it can realistically do, says economist Gerard Lyons.
1/ UK steel: been here many times before usually combination of factors public, private & international & need long term strategic thinking
2/Trouble is: good times economists grumble if government favours particular industry & in bad times (bank & steel) pressure is to intervene
3/ 1st issue is does government want to intervene & be aware of job losses if it doesn't & realistic of what it can achieve if it tries to
4/ if to intervene immediate issues are do we take China to WTO about anti dumping but this takes long time in Europe & may not achieve much
5/ or & again not easy, is to decide whether to intervene as China does with its steel industry - also sterling & energy costs too high
6/ these crises also expose structural issues e.g. - French firms have energy cheaper than ours - Germany steel more vertically integrated.
7/ also the cyclical strength of can't help (another reason not to hike rates as that transmission mechanism of strong not good)
8/ providing all the help possible given the strategic benefit of high quality steel & regional impact of these heavy job losses.
9/ Ministers said right things via expressing concern about steel job losses - their challenge is what realistically they can effectively do
8.17am BST
A more positive sign for Caparo Industries, which went into adminstration on Monday.
PwC, the administrators of the business, said they had already received several expressions of interest.
8.02am BST
Here's the Bloomberg story on the problems at China's Sinosteel:
A Chinese state-owned steel trader is set to default on a bond payment even after the government was said to have stepped in to help, highlighting worsening corporate finances as an economic slowdown deepens.
Sinosteel Co. will delay an interest payment due Tuesday on 2 billion yuan ($314.5 million) of 5.3 percent notes that mature in 2017, according to a statement on Chinabond's website Monday. The firm delayed payment as it plans to back the securities with stock of its unit Sinosteel Engineering & Technology Co., and that may affect issues related to interest payment, it said without elaborating. The failure to pay interest on time constitutes a default, according to Industrial Securities Co., Haitong Securities Co. and China Merchants Securities Co.
7.56am BST
Meanwhile in Germany, producer prices fell 0.4% in September compared to the previous month, a bigger decline than the 0.1% expected by economists. The year on year fall was 2.1%, again higher than the forecst 1.8%.
7.48am BST
Stock markets are expected to open virtually unchanged as investors weigh up the problems with the Chinese economy, and look ahead to this week's meeting of the European Central Bank:
Our European opening calls: $FTSE 6348 down 5 $DAX 10153 down 12 $CAC 4700 down 4 $IBEX 10199 down 8 $MIB 22413 down 6
7.41am BST
Tallying up the potential job losses in the steel industry in just this month - 2,200 at Redcar, 1,700 at Caparo Industries and now 1,200 at Tata - means that of a total UK workforce of 30,000, one in six workers face the axe.
Here is our analysis of the problems facing the industry:
Related: Can the government save Britain's ailing steel industry?
7.33am BST
Good morning and welcome to our our rolling coverage of the world economy, the financial markets, the eurozone and the business world.
It will be another grim day for the UK steel industry - what's left of it - with Tata expected to announce up to 1,200 job losses in Scunthorpe and Scotland.
Related: Tata Steel expected to announce 1,200 job losses in UK
While the weakness of commodity prices has its upsides, in the form of low inflation, we are now starting to see the downsides with job losses across the board in global manufacturing, not only in the UK, but in the US as well, while China has bailed out one of its own state owned commodity miners, in the form of Sinosteel, which has been haemorrhaging cash hand over fist, as it sells steel below market prices.
The story on the Chinese SOE Sinosteel... is gathering steam with a Bloomberg article noting moments ago that the company delayed an interest payment on its Yuan dominated bonds due today. The same story suggests that the Chinese regulator and State Council are working with all related parties in order to try to prevent a default. Certainly a noteworthy story testing China's commitment to allowing market reform.
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