Australia’s steel future hinges on containing energy costs

03 Oct, 2025

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Australia’s push to transform its steel industry into a more efficient and sustainable sector will hinge on the cost of energy, delegates at the Australian Steel Institute’s (ASI) national convention in Sydney have been told.

Speaking in a pre-recorded message on the opening day of the two-day event, Federal Minister for Industry Tim Ayres acknowledged the strategic importance of domestic steel but conceded that energy costs, especially natural gas, remained a serious hurdle.

“We (the federal government) will look at current settings,” Ayres told the convention.

The ASI has been lobbying for an east coast gas reservation scheme similar to Western Australia’s to ensure affordable and competitive energy for local manufacturers.

Access to reliable and low-cost natural gas is seen as critical to decarbonisation, with natural gas-based Direct Reduced Iron (DRI) production offering the potential to cut emissions by up to 60 per cent.

Ayres also commended the ASI and its chief executive, Mark Cain, for their role in government advisory committees focusing on sustainability, stressing that a strong domestic steel sector is vital for the economy.

Federal support for the industry includes a $2.4 billion partnership with the South Australian government to upgrade Whyalla steelworks and $500 million allocated to the national green iron investment fund.

On trade issues, Ayres confirmed that responsibility for Safeguard actions — temporary measures to protect domestic producers from a surge in imports — would shift from the Productivity Commission to the Anti-Dumping Commission.

Ayres said the government’s decision reflects its desire to ensure a level playing field for the local industry.

The ASI’s push for an east coast gas reservation was strongly echoed by BlueScope’s Chief Executive of Australian Steel Products, Tania Archibald.

In her address, Archibald said Australia was “awash with natural gas and should form a clear natural advantage for our manufacturers”.

Anti-Dumping Commissioner David Latina also addressed the convention, acknowledging industry concern over imported fabricated steelwork and underscoring the ASI’s advocacy role.

He highlighted that of the 60 current anti-dumping cases in Australia, 45 relate to steel.

In regard to Safeguard action, Latina said the commission would support the domestic industry “where the evidence is there”.

He welcomed the transfer of responsibility to the Anti-Dumping Commission, saying it would strengthen the trade remedies system and align Australia more closely with international practice.

The convention heard from ASI chief executive Mark Cain, who confirmed that the Safeguard action and related industry priorities were being advanced in front of a record 270 attendees.

Representing 700 companies and 7,000 members, the ASI is the peak body for the steel sector, which contributes $30 billion annually to the economy and underpins 100,000 Australian jobs.