Stark warnings from UK steel operator Tata further to its recent announcement of 1200 job cuts
All part of the fall-out from China's attempts to dig itself out of a whole by supplying cheap/inferior steel on the market
I reported on the issues here recently and expressed concern over the UK government's lack of real action
The BBC reports that Tata Steel has warned suppliers across all sectors, including recruitment, that if they don't slash prices by 30% then they risk losing Tata's business.
The company's Long Products division, which supplies steel beams, railway tracks and other products, has written to its suppliers asking for a 30% cut in prices in the long term.
It wants an "immediate" price reduction of 10% on all purchases and the company says market conditions have led to a "difficult business situation" at Longs Steel UK.
The letter says:
"Should you - for any reason - be unable to support us in our efforts, we will need to fully consider other options."
Such a request to suppliers is almost unprecedented and illustrates clearly the dangers of cheap Chinese and Russian exports, not only in the UK but across the Eurozone
The BBC has more here
