Market forces are manipulated on a global scale by countries with industry and income to protect. Generally the decisions are made by politicians/rulers.
Private companies then have to compete in this manipulated marketplace, Tata having to sell at the market price clearly manipulated by China. Despite massive downturn in their steel sector they have decided to maintain production to protect from closures and job losses in China, hence dumping of excess tonnage.
Look at the oil industry for a comparison.
Tata are UK based with UK costs to produce yet must sell at market price set by Chinese politicians. Not a level playing field!
Hence tarifs and protectionism.
Political and economic strategy fuels many decisions made by Governments...banks protection, HS2, green issues re piwer etc. If steel manufacture is thought to be strategically important then it needs to be kept.
If Port Talbot is bought by the "favourite" in the picture then the plant will change. Replacement of blast furnace/BOS plant by electric arc furnaces melting scrap is the alternative looking likely. As per Alpha Steel in Newprt.
Jobs would still go but far less than closure.
Teifistar describes the effects on the locality. Having been through similar myself I concur fully with the devastating effect on the whole of South Wales.
15,000 jobs gone........
Initial assistance re redundancy...enhanced or basic legal level?
Retraining schemes to keep job losers off the unemployment register and trained to do what?
Supplier businesses closing....no extra benefits to those employees as not Tata employees.
Shops, businesses in the town closing.
Repossessions of houses/cars etc.
Benefits paid massively increased after redundancy money has gone.
A bleak picture but the reality.
You want work? Where? Move house,lose money on the sale, commute LONG distance?
This is the problem of having one large employer in an area, if it goes the area dies.
The valleys area is still struggling after pit closures years ago.
I sincerely hope the plant is sold and Government assists in the sale through grants, loans, planning consent easing etc.. Government needs to recognise that the area is too dependant on one industry and start to get diversity in the local economy over a period of time.
Look to the EU and its policies and rules. Cameron needs to apologise for vetoing trade tarifs for steel a short while ago and not be a slave to " market forces" that are manipulated by unscrupulous countries.
Big can be good at times but when it goes wrong the effects are horrific.
There....rant over.
