In the News
Steel industry - Port Talbot steelworks owner reports £347m loss
![](https://tutor2u-net.imgix.net/user-photos/gbr_profile.jpg?auto=compress%2Cformat&crop=focalpoint&fit=crop&fp-x=0.5&fp-y=0.5&h=100&q=80&w=100)
2nd September 2021
There are so many micro and macro aspects to this news story about continued heavy losses at the UK operation of Indian conglomerate Tata Steels.
Port Talbot steelworks owner reports £347m loss despite £1bn funding https://t.co/8b2oNdLb4a
— Guardian Business (@BusinessDesk) September 1, 2021
Operating losses are a shade under £1 million per day which seems big enough except that this represents an improvement on the previous year when losses exceeded £600 million.
The pandemic-induced collapse in investment spending caused a steep fall in the derived demand for steel in a sector already experiencing excess capacity.
Steel demand is picking up but Tata is now facing up to higher costs that are Brexit-related including import tariffs on some raw materials, increased logistics costs - few industries these days seem immune from the chronic shortage of qualified HGV drivers.
And as an interesting side issue, Tata Steel has had to borrow money to help fund the purchase of carbon credits since the steel industry remains - for the moment - part of the EU carbon emissions trading scheme.
You might also like
Economics of the European Union
Study Notes
![](https://tutor2u-net.imgix.net/user-photos/gbr_profile.jpg?auto=compress%2Cformat&crop=focalpoint&fit=crop&fp-x=0.5&fp-y=0.5&h=100&q=80&w=100)
Building Capabilities - Car Manufacturing in Ghana
13th July 2015
![](https://tutor2u-net.imgix.net/user-photos/gbr_profile.jpg?auto=compress%2Cformat&crop=focalpoint&fit=crop&fp-x=0.5&fp-y=0.5&h=100&q=80&w=100)
UK Treasury's Analysis of Brexit
24th April 2016
![](https://tutor2u-net.imgix.net/user-photos/gbr_profile.jpg?auto=compress%2Cformat&crop=focalpoint&fit=crop&fp-x=0.5&fp-y=0.5&h=100&q=80&w=100)
What Brexit means for globalisation
7th July 2016
![](https://tutor2u-net.imgix.net/user-photos/gbr_profile.jpg?auto=compress%2Cformat&crop=focalpoint&fit=crop&fp-x=0.5&fp-y=0.5&h=100&q=80&w=100)
Nissan to make new Qashqai and X-Trail models in Britain
30th October 2016
![](https://tutor2u-net.imgix.net/user-photos/gbr_profile.jpg?auto=compress%2Cformat&crop=focalpoint&fit=crop&fp-x=0.5&fp-y=0.5&h=100&q=80&w=100)
Poland - A Development Success Story
18th April 2017
![](https://tutor2u-net.imgix.net/user-photos/gbr_profile.jpg?auto=compress%2Cformat&crop=focalpoint&fit=crop&fp-x=0.5&fp-y=0.5&h=100&q=80&w=100)
IMF downgrades UK growth forecast
20th December 2017
How does Brexit affect the Pound?
15th January 2019