Steel drops after Tata Steel reportedly seeks government support

Steel prices fell on Monday, after news that the UK's biggest steel producer "Tata Steel" needs about £500 million in government support.

This comes as the steel industry in the UK suffers from the sharp impact from the coronavirus on output and demand.

Sky News reported that Tata Steel has approached the UK and Wales governments for financial support due to the coronavirus crisis.

The talks between Tata Steel and government officials are still ongoing as the UK Treasury, Energy, Industry and Trade ministries have joined in, according to sources.

The company have around 8,385 employees across the UK, including 4,000 workers in Port Talbot in in south Wales.

Some officials pointed out that the British government is preparing an aid package worth £50 million pounds, which is only one 10th of what Tata Steel needs.

As of 13:28 GMT, steel spot futures fell 1.5% to $3,420 per tonne.