Our steel industry

[Adi_Dem]

After the strong and powerful words of our local MPs over recent months and years, I’m sure they’ll all vote in favour of anything that might protect our steel industry…

Protecting Britain’s Steel Industry

– in the House of Commons at 7:40 pm 21st June 2021

www.theyworkforyou.com

 

[Redwurzel]

It appears the local Tories voted against protecting parts of the Steel industry in this motion. They are hoping for Government support with measures such as high UK energies prices. Seems a dangerous path to tread without knowing the finer detail. I suspect there are some political games going on with Labout trying to dislodge some RedWall Tories in steel seats and then those Tories not taking the bait against probably the best interests of their constitiuents. I find it all quite sad really. There is also a battle going on between steel producers and steel users.

 

[Cress]

Book on history of steel:

Shaped by Steel

Shaped by Steel: Landscapes, Lives and Legacies of a Global Industry - Swansea University and Arts & Humanities Research Council, published August 2021

online.flippingbook.com

Teesside pages 90, 99

 

[Lottowyn]

I suppose we're seeing the results of gradually phasing out our manufacturing and industries, and believing we can rely on balancing our economy on just the City of London's profitable trading and tourism.

 

[Redwurzel]

It was sad reading about the thousands of people involved in SSI Redcar losing their jobs overnight (£600 per week to £74 per week Job seekers - thats brutal) How steel making has almost collasped on the UK since the 1970s. Areas like Teesside having a steel sector pretty much abandoned by all Governments since 1979. Japan and Germany seemed to have managed a more gradual decline in the face of mass subsidised production in countries such as China. It always puzzled me hpow we have the highest energy costs in the word and have done for a lot of year, despite have coal, natural gas, oil, wind and sea power and early adopters of nuclear. The only things we are low on in thermal power and solar. We are physically small country making it easy to move energy too. Energy is a major cost in steel production, much higher than labour.

 

[Redwurzel]

I suppose we're seeing the results of gradually phasing out our manufacturing and industries, and believing we can rely on balancing our economy on just the City of London's profitable trading and tourism.

Certainly financial services we were told was what the UK was expert in and it would generate enough money to pay the welfare benefits of former industrial workers and their relatives. So enormous investments went into developing the infrastructure of the South East of England, new tube lines, new rail lines, new stations, M25, Canary Wharf and still is with CrossRail. Since 2016 there has been a bit of a re-think and the mainly talk so far of rebalancing the UK economy.

Tourism in the SE is much smaller than financial services. The UK has become more of a tax haven for some global citizens and that has brought funds in, but they can leave just as quick. Their money certainly buoys up London property prices before Covid.

 

[bear66]

It was sad reading about the thousands of people involved in SSI Redcar losing their jobs overnight (£600 per week to £74 per week Job seekers - thats brutal) How steel making has almost collasped on the UK since the 1970s. Areas like Teesside having a steel sector pretty much abandoned by all Governments since 1979. Japan and Germany seemed to have managed a more gradual decline in the face of mass subsidised production in countries such as China. It always puzzled me hpow we have the highest energy costs in the word and have done for a lot of year, despite have coal, natural gas, oil, wind and sea power and early adopters of nuclear. The only things we are low on in thermal power and solar. We are physically small country making it easy to move energy too. Energy is a major cost in steel production, much higher than labour.

There was an industry bod talking about electricity costs today on R4. He was saying that there is a fundamental problem with our price structure as elecricity quickly follows the marginal cost of gas, which is the marginal fuel, rather than the actual cost of overall generation which is much lower. So industry gets hit whilst generators make windfall profits.

Normally, we compare very favourable with Europe with consumer and industry costs similar to Latvia in the charts below for both. Denmark stands out as having one of the cheapest Inndustry cost but most expensive Consumer cost. With 50% coal usage for energy production, China industry pays just over 7p per kWhr compared with 11.2p per kWhr in the UK.

 

[Redwurzel]

Thanks Bear 66

I read the UK is paying around 20% more than Germany for industrial users. Your chart says 0.18 euros opposed to text quoted £0.112 (0.13ish euros) for the UK making energy much cheaper in the UK which is against all the stories reported in the media.

I am not saying your figures are wrong, but it shows there is inconsistency. Why did your £0.112 cost come from? Is it just electricity?

Looking at our household energy bill - we pay 3.079p per KWh for gas and 16.05p for electricity plus standing charges. Prices exclude VAT. I don't think these prices are a special deal, they are March to September 2021.