That's a very simplistic view of things.
The steel price has been wiped out (Over 50% fall in 12 months) because Iron ore has dropped like a stone. You're quick to blame China for this mess, but they propped up the market for over 10 years by being the biggest new purchaser of commodities by far, raising their prices and thus keeping our (And Europe's) steel industries afloat be keeping prices higher across the board.
Now China has wobbled, they have a massive over supply of iron ore and thus domestic steel production and like us, it is killing them also. The Chinese strategy is to kill off legacy plants and invest in new tech like electric cars and the tech behind that. It's going to be painful for their industries to adapt too, and while the ruling party may be safe there, on the ground there's a painful transition happening.
That and as they know too well, the old coal fired steel plants are literally choking them to death. The government there are acutely sore about the charges their people are levelling against them regarding air quality and frankly, the status quo of producing steel (And other factory products) cheap with no regard of how it is made will not continue.
It's all too easy to look at the superficial reasons for anything. The mining industry was brutally closed because they were dragged on a decade too long and by the time Thatcher closed them they were a messy, old, and more importantly woefully uncompetitive industry. What happened after that is the scandal, as the divide between the areas that received support, and those just left to rot are pretty obvious to this day.
You can believe what you like, but if you look at this graph and tell me this is somehow Cameron and Co's doing, you are delusional.
http://www.bloomberg.com/quote/BCOM:IND
Click 1Y on the graph. This is a measure of all commodities in the Bloomberg Index. As a whole, there has been a fall of near 30% since may. This affects everything from energy, to agriculture, to industry. Primary producers, from Iron Ore miners in Australia to dairy farmers here and in NZ are screwed.
Usually, places like PT would actually benefit from lower input prices, but because of our energy prices being too high, and because blast furnace produced steel is among the least efficient, it simply cannot cope with price falls that not only out-strip input cost falls, but with no market to sell their products to with too much steel in the first place.
As I said before, this is brutal, unfair and I feel for those affected, but we cannot support legacy industry just because that is all a community knows. Port Talbot needs targeted support to utilise the workforce and their skills in a way that CAN compete in an international market, not keep going a plant that is not fit for the 21st century.