Cost of energy will make or break steel's move to a more efficient, sustainable industry, the Australian Steel Institute's (ASI) national convention in Sydney has heard.
Speaking in a pre-recording on the opening day of the two-day convention, Federal Minister for Industry Tim Ayres acknowledged the importance of local steel to Australia's future. But he conceded the cost of energy, in particular natural gas, was a hurdle in the local steel industry's push to a more sustainable future. "We (the Federal Government) will look at current settings,'" he told the convention.
The ASI on behalf of the industry has called for an east coast gas reservation similar to WA to ensure gas and energy more broadly is affordable and competitive for domestic manufacturers. Access to competitive gas supplies will also be critical to advancing the steel industry's decarbonisation ambitions, with natural gas based Direct Reduced Iron (DRI) production having the potential to deliver a 60% reduction in emissions.
Acknowledging the important role the ASI and its chief executive Mark Cain were playing on Federal Government committees investigating sustainability, Ayres said a strong local steel industry was vital for the Australian economy. He said government support for the local steel industry included $2.4b in funding (with the SA Government) for the Whyalla steelworks and $500m for the green iron investment fund.
Referring to the ASI's Safeguard action to protect local fabricators from a surge in imported fabricated steel, Ayres said the government's decision to shift responsibility for Safeguard from the Productivity Commission to the Anti-Dumping Commission reflected its desire to ensure a level playing field for the local industry. Safeguard actions temporarily protect local businesses from a surge in overseas imports.
The ASI's call for an east coast gas reservation, including an effective price mechanism, was strongly backed by BlueScope Chief Executive Australian Steel Products Tania Archibald. In her address to the convention, Archibald said Australia was "awash with natural gas and should form a clear natural advantage for our manufacturers".
In his presentation to the convention, Anti-Dumping Commissioner David Latina said he recognised the strong concern in the local steel industry over the surge in imported fabricated steelwork into Australia, and the important role being played by the ASI in bringing that concern to the attention of the government. Latina noted of the 60 existing anti-dumping actions in Australia, 45 were from the steel industry. In regard to the ASI's Safeguard action, he said the Anti-Dumping Commissioner would always support local businesses "where the evidence is there".
Latina welcomed the Anti-Dumping Commission taking over responsibility for Safeguard, saying it would make Australia's trade remedies system more effective and align Australia with overseas countries. The ASI's plans for the Safeguard action were outlined to a record 270 attendees at the ASI convention by ASI chief executive Mark Cain.
The ASI is the peak body for the Australian steel industry, representing 700 companies and 7,000 members. Steel generates 100,000 jobs and $30b in annual revenue in Australia.
