Companies going bankrupt/into administration

[PS_RalphW]

Expect more job losses as the Chinese economy contracts. I suspect we are at the high watermark of the 'recovery' from 2008. We cannot grow by exporting because there isn't demand, and we cannot grow by domestic consumption because of domestic debt and austerity. Without growth debt cannot be paid, companies go broke, people lose jobs, demand falls further, and you are in a deflationary cycle.

[biffvernon]

If the Chinese steel industry had the same standards of environmental control and worker conditions as the Scunthorpe plant things would be different, but we can't block imports just because their industry is dirtier than ours as that would upset Mr. Osborne's new play-mate.

[AutomaticEarth]

Another steel works going to the wall:-

http://www.telegraph.co.uk/finance/news ... ation.html

[cubes]

and we're going to sell the family silver to china too! Awesome!

[kenneal - lagger]

All because the government's *anker friends don't want it to print its own money!

[AutomaticEarth]

Here you go.......

http://www.telegraph.co.uk/news/politic ... cians.html

What a waste of public money.

[biffvernon]

Me, I like a colourful dress but the curious thing is that someone in a suit like Cameron wasn't just a teeny bit cautious about dealing with someone with a cloth hat.
Was there no little boy pointing out that the Emperor has funny clothes?

[careful_eugene]

If the Chinese steel industry had the same standards of environmental control and worker conditions as the Scunthorpe plant things would be different, but we can't block imports just because their industry is dirtier than ours as that would upset Mr. Osborne's new play-mate.

One problem with Chinese steel is that it just isn't as good as that produced in Europe, they are pushing steel with higher than permitted levels of Boron (0.0025% as opposed to 0.0008%) into Europe. Whilst this doesn't sound much, excessive Boron causes hardness which can lead to hydrogen induced cold cracking following welding. I work for a company that uses a lot of steel, we won't use steel of Chinese, Indian, Ukrainian or Iranian origin for that reason. I'm surprised that more isn't being made of this as we all have to "CE" mark our products which includes certifying that we are working to the correct standards (in this case BS EN 10020). There is also evidence to suggest that excessive Copper and Chromium are being found in Chinese steels.

[Little John]

Time horizons are being squeezed, like everything else. Thus, if the steel is cheap and the steel does the job right now, the buyers cannot afford to worry if that steel with fail in 30 years instead of 40. It's as a simple as that.

[careful_eugene]

Time horizons are being squeezed, like everything else. Thus, if the steel is cheap and the steel does the job right now, the buyers cannot afford to worry if that steel with fail in 30 years instead of 40. It's as a simple as that.

Highways and Network rail structures (what we do) generally have a 120 year design life, cold cracking tends to occur straight after welding and should be picked up during the NDT inspection (non destructive testing) however, repairs can be costly. In order to supply anything to that market, the supporting documentation has to be extensive and every piece of steel used has to be traceable back to where it was produced, chemical composition etc. There are similar requirements for the welding processes and welders. With all this in mind, I find it difficult to believe that the EU will accept this lower quality material.

This is interesting http://www.snp.org/save_our_steel_snp_v ... e_unturned
I didn't hear much noise from the SNP when the contract to supply the steel for the new Queensferry bridge over the Forth was awarded to the Chinese firm ZPMC

[adam2]

One problem with Chinese steel is that it just isn't as good as that produced in Europe, they are pushing steel with higher than permitted levels of Boron (0.0025% as opposed to 0.0008%) into Europe. Whilst this doesn't sound much, excessive Boron causes hardness which can lead to hydrogen induced cold cracking following welding. I work for a company that uses a lot of steel, we won't use steel of Chinese, Indian, Ukrainian or Iranian origin for that reason. I'm surprised that more isn't being made of this as we all have to "CE" mark our products which includes certifying that we are working to the correct standards (in this case BS EN 10020). There is also evidence to suggest that excessive Copper and Chromium are being found in Chinese steels.

Your firm should have a word with your local Chinese steel supplier, for a nominal fee they should be able to supply steel with whatever certificates and approval marks that you require, including certification that the boron level is as low as you require.
Indeed, steel produced according to socialist principles of cooperation in a workers paradise should be far superior to that resulting from a capitalist steelworks.

[kenneal - lagger]

Where's the Smiley icon, Adam?

[adam2]

Where's the Smiley icon, Adam?

Now added

[kenneal - lagger]

Wouldn't want your excellent creditability denigrated would we!!

[AutomaticEarth]

Chugger firm goes bust:-

http://www.telegraph.co.uk/finance/news ... artin.html