The Australian Steel Institute (ASI), the nation’s peak body for the steel industry, is joining forces with Organisation for Economic Co-operation and Development (OECD) member countries to push for trade action against the flood of low-priced imported fabricated steel threatening domestic manufacturers.
The move comes as the Australian market faces a sharp rise in imported steel over the past three years, which has severely impacted local businesses.
At its Paris meeting in March, the OECD Steel Committee sounded the alarm over the viability of even the most competitive steelmakers, warning that excess global steel capacity — driven largely by Chinese cross-border investments — poses a significant threat to the industry.
Chinese steel exports have more than doubled since 2020 as producers look to offset a downturn in the domestic economy, with excess capacity projected to reach 721 million metric tonnes by 2027.
“Without policy adjustments in countries that are fuelling the excess capacity, or disincentives for them to export their surplus steel, global steel industry problems will intensify,” the OECD Steel Committee has warned.
The OECD points to a range of domestic support measures — such as grants, tax incentives, differentiated electricity pricing, and below-market borrowing — as key factors enabling Chinese producers to export steel at prices that do not reflect true market costs, further distorting global trade.
In response, several OECD countries, including the European Union, Canada, and the United States, have already implemented trade remedies such as anti-dumping measures and tariffs to protect their domestic steel sectors.
These actions aim to level the playing field for local producers and address the persistent problem of global overcapacity.
ASI chief executive Mark Cain highlighted the urgency of the situation for Australia.
“ASI research revealed a rapid increase in fabricated steelwork imports in Australia over the past three years, with the 2024 volume representing an increase of nearly 50 per cent on the 2016 to 2021 period,” he said.
“This had led to a large reduction in the availability of work for local fabricators.”
Cain added: “We are talking to the Australian government about the best way forward,” emphasising the need for immediate and effective policy responses to protect the local industry.
The ASI is actively engaging with government officials, industry stakeholders, and unions to explore all viable strategies — including safeguards actions and detailed economic modelling — to counteract the negative impacts of imported steel on the entire Australian steel value chain.
The industry’s call for action underscores the critical need for fair competition and long-term sustainability for Australia’s steel sector.
