A TEESSIDE steel maker has warned the industry is fighting for its life, with companies facing collapse under the strain of crippling global markets.

SSI UK, in Redcar, fears it won’t make a profit this year as it battles the crisis.

The business, which supports about 3,000 North-East jobs, says the sector is stuck in a tailspin, intensified by economic woes in China and Russia.

Last night, former North-East steel worker and ex-Redcar and Cleveland Council leader George Dunning urged the Government to come clean over its support for the steel sector to help firms stay alive.

SSI UK rescued the former Redcar British Steel plant in 2012 and has smashed a succession of production records, but is suffering from lower prices.

The loss-making firm had earmarked 2015 as a watershed year, with bosses eyeing their first profit.

However, Cornelius Louwrens, SSI UK’s business director and chief operating operator, said it was facing difficulties as it looks to shave more off the £193.5m post-tax deficit registered in its last set of accounts.

The business has made more than nine million tonnes of steel slab in three years for customers in the US, Europe and Thailand, but Mr Louwrens said such positives were being tainted.

He said: “The industry is still weakening and it is fighting to survive.

“I do not see it turning this year and would not speculate about 2016.

“The steel sector has gone into a tailspin; this is not a SSI UK thing.

“China devaluing its currency is not good for steel makers.

“Sales were about $500 a tonne, now they are down to below $300.

“It is impossible to stay like this; it could see industry players ceasing operations.”

SSI UK’s Concast team set an all-time high last month, casting 192 ladles of molten metal without a sequence break, a feat which came shortly after its blast furnace broke the plant record for daily tonnage.

Despite its difficulties, Mr Louwrens said the company will stay true to its programme of exploring ways to increase both production numbers and quality.

He added: “We are doing the best we can.

“When you get a bit of breathing air you can see the work being done is bearing fruit.”

Mr Dunning, who worked across Teesside’s steel sector, including spells at British Steel and Corus, said the industry needed help.

He called on ministers to provide backing, including support over rising energy prices.

He added: “Companies are clearly suffering.

“The chemicals sector is doing ok and we have York Potash coming on to create 1,000 jobs at its mine near Whitby.

“But, in the mean time, steel requires Government support.”

Earlier this month, The Northern Echo revealed SSI UK’s financial backers had set aside extra cash to cover future loans.

Thai Bank, Siam Commercial Bank and Tisco Bank helped fund the steel firm’s purchase of its Redcar plant for about £700m in 2011.

The Northern Echo also understands the company is struggling to meet supplier payments.

See Wednesday's Jobs and Business print supplement and online for more on how SSI UK aims to grow in the steel sector.