China warns on discrimination against firm that owns British Steel as No10 says it is confident raw materials can be secured to save Scunthorpe plant

China has warned on discrimination against the firm that owns British Steel after ministers moved to seize control. 

Beijing urged the UK not to politicise the situation amid a desperate scramble to keep furnaces running at the Scunthorpe plant.

Jingye has been accused of forcing the government to pass emergency legislation by accelerating a shutdown, with suggestions negotiations had not been in good faith. Once blast furnaces go out and cool they are impractical to restart.

No10 said this morning it is now confident that raw materials such as coking coal can be secured, hours after Treasury minister James Murray refused to guarantee that was the case.

A shipment needed to maintain operations has been at docks in Lincolnshire for days, but has yet to be moved the 25 miles to the site after behind-the-scenes wrangling. More supplies are en route.

The PMs official spokesman said: We are now confident in securing supply of materials. 

Ministers refused to guarantee furnaces will keep running at British Steels Scunthorpe plant today despite the government taking control

Treasury minister James Murray confirmed that a shipment of coal needed to maintain operations at British Steels Scunthorpe site is at docks in Lincolnshire 

The spokesman added: Obviously we will be working with the management to identify further raw materials needed to keep a steady pipeline, and to keep the furnaces burning.

Im not going to get ahead of what comes next, but well obviously now work on the issues of ownership.

He said there are two ships carrying materials docked at Immingham port, with a third ship which is currently on route off the coast of Africa, which will be making its way to to the UK.

Downing Street would not say whether money had been exchanged for the materials, and said they would reach the plant in the coming days.

The government has been urged to get on with it after it emerged the 55,000-ton delivery from Japan, which arrived on Thursday, had not yet been paid for.

Rail operators drew up timetables for two freight trains to run yesterday between Immingham Port on the Humber Estuary and Scunthorpe Steelworks, but the cargo was not unloaded. 

The Chinese foreign ministry warned the UK against politicising trade matters.

Both sides should discuss and solve the difficulties encountered by the current operation of British Steel on the basis of the principle of mutual benefit, spokesman Lin Jian said.

A separate statement issued by the Chinese embassy said: We have urged the British side to act in accordance with the principles of fairness, impartiality and non-discrimination and to make sure the legitimate rights and interests of the Chinese company be protected.

The statement added: It is an objective fact that British steel companies have generally encountered difficulties in recent years...

It is hoped that the British government will actively seek negotiation with the relevant Chinese company to find a solution acceptable to all parties.

Touring broadcast studios this morning, Mr Murray said Government staff had been at the plant in North Lincolnshire since Saturday - when Parliament passed emergency legislation to direct operations.

Their role is to make sure we do everything we can to make sure we get those raw materials to the blast furnaces in time and to make sure they continue operating, he said.

Mr Murray would not guarantee the furnaces will continue running, claiming the plants Chinese owners, Jingye, had accelerated the shut down of one furnace.

He said: The raw materials, the shipments have arrived, theyre in the UK, theyre nearby. There were questions about getting them into the blast furnaces, that is what the officials are focused on right now.

He added: We know that the Government needed to do everything possible on Saturday to protect the future of steelmaking in the UK.

Were not just going to step aside and let the industry fail with the blast furnaces closing. Weve been negotiating in good faith with Jingye but when it became clear they were accelerating the plans to close the blast furnaces, we had to step in.

However, Charlotte Brumpton-Childs, GMB union national officer, said she is wholly reassured that the coking coal will be paid for and unloaded over the next couple of days at Immingham Bulk Terminal.

She told BBC Breakfast: I spoke to British Steel late yesterday evening and was wholly reassured, actually.

Ive (been) told that the coke thats at Immingham Bulk Terminal will be paid for and unloaded over the next couple of days and that Government are working at pace to secure the rest of the raw materials that are currently on the ocean.

A shipment of coal needed to save Scunthorpes blast furnaces was still stuck on a boat last night. File photo of the plant

Gareth Stace, head of the UK Steel industry body, said Parliament had given British Steel breathing space while a long-term situation for the sites operations is found. 

The next and most immediate step is securing the iron ore and coking coal needed to keep the furnaces operating, he said. 

If the furnaces cool down, it is virtually impossible for them to be restarted. We applaud the herculean efforts of officials and British Steel staff to secure these supplies. 

Dozens of other steel companies have offered assistance and materials, demonstrating that, at times of crisis, the sector comes together as one. The success of our steel industry sits above any individual business. 

Steelworks insiders said on Wednesday there were 48 hours of coal supplies left and the site needed them to allow it to keep going. 

Officials said that before the Governments intervention to take control, British Steels Chinese owners Jingye were selling off raw materials and not ordering more.

It has since been reported Scunthorpes two blast furnaces could continue running until May. However, this may involve one being kept warm until it can be restarted.

Conservative MP Sir Iain Duncan Smith said: What is the Government doing? 

Ministers said they needed the recall of Parliament to pass emergency legislation to keep the steelworks running but now they dont act like its an emergency.