It's a genuine question and I don't think I know the answer - does the UK need a steel industry? Economics suggest that low factor costs will dictate where manufacturing takes place; iron ore, limestone, cheap power and cheap labour should determine the location of this industry, surely? Unless of course
(1) we need a domestic steel industry for reasons of national defence or national security
(2) we have competitive advantage in producing steels of a quality or type unavailable elsewhere
(3) competition is distorted by state subsidy, tariffs or dumping by our competitors
The least legitimate reason for government intervention is of course for reasons of political convenience for the government, but which I suspect will be the real reason for any rescue.