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UK steel collapse

Would bailing out the steel industry be a costly mistake, and are accusations of “dumping” wide of the mark?

Sir, Oliver Kamm (Thunderer, Oct 21) claims that the UK steel industry is suffering because it is uncompetitive; we agree. However, unlike Mr Kamm, we do not believe that this is because the industry is “highly fragmented and needs consolidation”. Rather, it is due to steel being dumped by China. That anti-dumping actions against China by major economies have increased by 60 per cent since 2010, and that about 80 per cent of EU cases are against China, clearly demonstrates this point.

Steel is a global market but there has to be a level playing field. EU trade defence instruments are designed to ensure that this is the case. Yet the process to implement measures takes up to two years. This is far too slow and is resulting in the closures and job losses we have seen in the UK over the past week. If the EU does not begin to act in the interests of the European steel industry — which is the backbone of a very important supply chain and directly employs more than 350,000 people — we will see other European steelmakers go the way of those in the UK.

Robrecht Himpe

President, Eurofer

Sir, Our politicians have been quick to blame the Chinese for the crisis in the steel industry, while being silent on their own role in creating the high-price electricity which is also crippling the industry. The over-hasty dash for low-carbon electricity, and politicians’ desire to demonstrate their green credentials, have helped to create problems for both British industry and consumers in the form of expensive energy. A more measured approach to phasing out more polluting electricity production would have kept costs down while having little or no impact on the global level of so-called greenhouse gases.

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Andrew Brown

Allestree, Derby

Sir, The closure of so many British steelworks is a dreadful mistake. The reason given for the closures is that they can not remain profitable in the face of subsidised Chinese steel undercutting British-produced steel. Surely the answer is to subsidise British-produced steel. It would be cheaper to do this than to fund thousands of out-of-work steelworkers and would avoid clean-up costs of billions of pounds.

Dr Tony Gilbertson

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Liverpool