The peak body for Australia’s steel sector has expressed “extreme disappointment” over an interim report from the Productivity Commission (PC), which concluded that rising steel imports do not warrant protective tariffs or quotas for local fabricators.
The PC’s findings state that while individual fabrication firms face operational pressure, industry-wide data indicates growth in sales and profits across the investigation period, despite a recent decline in employment.
Consequently, the Commission determined that the increase in imported fabricated structural steel was insufficient to demonstrate serious, industry-wide injury required to trigger formal safeguard protections.
Australian Steel Institute (ASI) CEO Mark Cain confirmed the peak body is meeting with PC Commissioners to clarify the report’s methodology before making a full response and final submission.
“We are working through the detail of the report to understand the reasoning behind the decision, and will make a final submission to provide evidence in support of the application,” Cain said.
The ruling comes despite fresh survey data from the ASI highlighting escalating distress across domestic workshops. An August 2026 survey of Australian structural steel fabricators revealed that price undercutting by foreign imports has widened to an average of 36.8 per cent, up from 27.9 per cent in 2024.
Across every measured category, including reduced margins, lost contracts, higher quoting costs, and forced restructuring, pressures have intensified over the past two years.
The 2026 data indicates a looming crisis for local capacity. Only 43 per cent of surveyed fabricators expect to remain operational in 12 months without regulatory relief such as tariffs or quotas, while 42 per cent remain uncertain and 13 per cent expect to close.
Additionally, 58 per cent of businesses are considering overtime bans, half are planning staff hour reductions, and 40 per cent have flagged hiring freezes or a halt to apprentice intake.
The ASI will brief its 7,000 members shortly with guidance on participating in the final submission process.
