Newport East MP Jessica Morden said that she was "seeking clarity on the impact for our community" as figures for specific job losses in Llanwern have not been announced by Tata

Welsh Secretary Stephen Crabb has described the idea of government taking a stake in Tata as "intellectually lazy".

Plaid Cymru has called for the Welsh government to consider taking a temporary stake. But Mr Crabb said the government does not have the expertise to help the company return to profit.

First Minister Carwyn Jones said he was not sure what would be achieved by buying a stake.

Plaid Cymru economy spokesman Rhun ap Iorwerth called on the Welsh government to "look with urgency at all options" to support the steel industry, including taking a temporary stake in Tata Steel to safeguard the remaining jobs.

"There is a bright future for steel in Wales, but urgent help is needed to get us through these difficult times," he said.

For the Welsh Liberal Democrats, South Wales West AM Peter Black said: "These are well-paid jobs and will prove difficult to replace."

"If the two governments do not act quickly and decisively together to start to put things right then I fear that there may well be more job losses," he added.

Anna Soubry, the UK government's Business Minister, said: “Even if we were to abolish business rates that would not solve the problems of Britain’s steel industry.

"Over-production in the world and under-consumption means the price of steel, like slab steel, has halved.

“We can ameliorate that and create a level playing field, but it’s the price of steel that’s fundamentally the problem. No government can solve that.”

A Neath Port Talbot council spokesman said: "Whilst not without warning, this news is no less devastating for the town of Port Talbot and the county borough. 

"The steelworks makes a significant contribution, both directly and indirectly, to the economy of the region, and as such Neath Port Talbot council will work with Tata, the Welsh government and the UK government to do the best we can for the people affected by this announcement."

Image source, Google

A look in pictures at the Welsh steel industry through the years

Image source, Ben Salter

Alistair Ramsay from Metal Bulletin Research, told BBC News there was an erosion in global demand for steel last year - although China still managed to export 20 million tonnes. This had increased competition.

He said: "In some countries there's been a very aggressive blockading programme being put in place like in the US where a tonne of coated steel - the most popular material coming from China going to the US - gets charged three times more than its value on entry, making it redundant in the US."

Tata Steel has issued a statement, external following today's announcement.

Karl Koehler, chief executive of Tata Steel’s European operations, said: “I know this news will be unsettling for all those affected, but these tough actions are critical in the face of extremely difficult market conditions which are expected to continue for the foreseeable future.  

"We need the European Commission to accelerate its response to unfairly traded imports and increase the robustness of its actions. Not doing so threatens the future of the entire European steel industry.

"And while we welcome progress on UK energy costs, the (UK) government must take urgent action to increase the competitiveness of the UK for its vital steel sector.

"This includes lowering business rates and supporting energy efficiency and anti-dumping cases so we can compete fairly."

• It employs more than 80,000 people worldwide.
• It is part of the wider Tata Group, an Indian conglomerate.
• Founded more than 100 years ago, it operates in 26 countries.
• The steel it produces is used to make products from cars to office furniture and battery cases.  
• It had a revenue of about £15bn last year.
• Tata became Europe's second largest steel producer after it bought Corus, formerly British Steel, for £8bn in 2007.

Image source, Wales News Service

Steel prices have fallen over six years

BBC Wales reporter Ben Price has spoken to people in the community

Welsh Secretary Stephen Crabb said: "The UK government will keep doing what it can to support a steel industry suffering intense pressures from cheap steel imports and a global slump in prices.

"That involves working with Tata to ensure they remain a significant presence in south Wales."

BBC Wales reporter Dafydd Morgan says security officers have pulled down a union banner erected at the steelworks site. Union says it will go back up.