It is feared up to 800 jobs could be lost at British Steel in Scunthorpe.
The company is currently battling the dual impact of soaring energy prices and shrinking demand, while also seeking support from government to enable a transition to Net Zero production.
Reports on the potential losses - more than half the original number highlighted when the need for help first emerged - come as it is understood ministers and the company are closing in on some form of rescue package. Sources close to the negotiations have suggested a £300 million deal was on the table, providing investment and employment securities are forthcoming from the Chinese owner, Jingye Group.
