Against the backdrop of a worsening global glut of heavily subsidised steel, the Productivity Commission's (PC's) interim finding not to protect Australian fabricators from imports sends a deeply concerning signal, Australian Steel Institute (ASI) chief executive Mark Cain told the opening day of the ASI National Convention on Tuesday, September 15.
Seeking to rebut the interim findings in a follow-up submission now being prepared, Cain said the ASI has SIGNIFICANT concerns regarding the relevance, reliability and interpretation of the data used to support the PC's conclusions.
They include:
- The apparent reliance on Australian Bureau of Statistics (ABS) data rather than Australian Border Force import data. The ABS data does not reconcile with the information originally presented to the PC, thereby raising material questions regarding the accuracy of import volume assessments.
- The PC appears to have relied on broad business activity and industry datasets without fully understanding the inclusions and exclusions within those datasets. As a result, assessments of domestic fabrication volumes may overstate Australian domestic production because they do not properly distinguish between locally fabricated product and imported fabricated product sold by the same businesses.
- Similarly, the financial performance of fabrication businesses may be distorted by diversified operations outside steel fabrication. Strong earnings from non-fabrication activities can mask significant deterioration within fabrication operations themselves.
"The timing could not be more critical for local steel," Cain told more than 250 attendees at the steel industry's premier event in Adelaide.
"The Whyalla steel mill business is in administration, reliant on government support and progressing through a sale process that will determine its long-term prospects.
"Any outcome that further undermines domestic demand for Australian structural steel, weakens confidence in the future of the rolling mill, or increases uncertainty surrounding Australia's steel
industry has the potential to negatively influence investor confidence and ultimately the success of the sale process."
Without a viable local market for fabricators, Cain said Australia would become increasingly dependent on imported steel for critical infrastructure, weakening supply chain security, reducing industrial capability and increasing risks associated with the delivery of future construction, transport and rail projects.
"For prospective purchasers, the existence of a strong and sustainable Australian fabricated steel sector is not a secondary issue. It is fundamental to the future of the steel industry in Australia.
"The ASI applied to the Federal Government for safeguard measures because it believes that the domestic fabrication industry is suffering serious financial injury from imported fabricated structural steel products. The PC's interim finding rejecting protection flies in the face of what is clear to every fabricator; the local industry is under attack from imports and desperately needs help.
"The ASI will do everything in its power to challenge this finding. The consequences for Australian manufacturing and the nation's long-term industrial capability are simply too significant to get wrong."
The ASI national convention is being held from September 14-16 at the Amora Adelaide. Under the theme Capability, strength and resilience in a changing world, the program will explore how the steel industry can strengthen domestic fabrication and manufacturing, maintain competitiveness, and respond with confidence to economic, technological and geopolitical change.
For details on the ASI Safeguard campaign, go to https://www.steel.org.au/what-we-do/advocacy/asi-campaign-on-imported-fabricated-steelwork/.
For details on the ASI convention, go to https://www.steel.org.au/news-and-events/steel-convention-2026/ .
About the Australian Steel Institute
The Australian Steel Institute (ASI) is the peak body representing Australia's steel industry, including manufacturers, distributors, fabricators and allied industries. The ASI advocates for policies that support a competitive, sustainable and sovereign Australian steel industry. The ASI represents 7,000 members and 700 companies nationally.
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