Emergency govt measures sought in the wake of a surge in low-priced imported steelwork

Australian Steel Institute

The Australian steel industry has sought emergency trade relief measures to address a surge in low-priced imported fabricated steelwork threatening the local industry.

The Australian Steel Institute (ASI) on behalf of the industry has lodged a Safeguard application with the Federal Government requesting it apply temporary emergency provisions to protect the industry.

This application presents a comprehensive case for emergency trade relief measures to address a crisis of import penetration that has fundamentally altered the competitive landscape for Australian steel fabricators.

ASI chief executive Mark Cain says the Australian fabricated structural steel industry stands at a critical juncture, facing an unprecedented surge in imports that threatens the viability of domestic manufacturing capacity built over decades.

Due to its vulnerable state, the Australian fabrication industry also faces a threat of suffering further serious injury, which will, if not countered, ultimately result in the full loss of sovereign manufacturing capability.

The ASI has been advised that more than a dozen steel fabrication businesses have closed in the western Sydney area alone in the past 18 months, with the majority of closures due to the dire impact of competing against very low-priced fabricated structural steel imports.  It is estimated that the national impact is at least three to four times greater than this.  

Some examples of the real impact on the businesses still operating include:

• A family-owned and operated business in south-western Sydney has experienced such a decline in fabricated steel sales that the capacity utilisation of its manufacturing facility now stands at a mere 27 per cent.  Three years prior, it was 90 per cent.
• A Queensland-based steel fabricator has incurred progressively worsening operational losses such that over the period 2023 to 2025 it has made 35% of its workforce redundant.
• A Victorian-based business experienced a decline in sales revenue of 22 million dollars between 2024 and 2025 due to competing imports.  This has left the business of 25 employees critically assessing its ongoing viability. 

Safeguard measures are defined as “emergency” actions under a World Trade Organisation (WTO) agreement where a “surge” of imports causes or threatens to cause, serious material  injury to a domestic industry and allow a country to respond to unforeseen increased imports which have caused serious material injury.

Based on an analysis that covers not only the interests of domestic producers, but also users, importers, and the broader economy, the Safeguard measure would serve compelling national interests.

Economic modelling shows that the imposition of Safeguard measures will result in a net increase of productivity for Australian industry by preserving essential manufacturing capability, protecting employment, and maintaining competitive market conditions while minimising adverse effects on other stakeholders through careful measured design and implementation.

In addition, regional economies would be expected to experience significant benefits; government policy objectives would be enhanced, particularly in manufacturing and industry development including the Future Made In Australia (FMA) initiative.

The implementation of Safeguard measures would also prevent the erosion of critical steelmaking assets that represent a substantial long-term sovereign investment; would support the nation’s sovereign manufacturing capability for critical defence projects and help maintain and enhance a skilled Australian workforce by supporting apprenticeships and advanced fabrication trades, encouraging investment in new technologies and training.

What are the next steps?

There are a number of steps to be followed in the government process but given the critical nature of this issue for many members, the ASI is urging the government to ensure that the process of referral, information clarification, data collection, analysis, and finally decision-making is conducted with the utmost urgency.

The ASI is the peak body for the Australian steel industry, representing 700 companies and 7,000 members. The local steel industry generates 115,000 jobs and $29b in annual revenue in Australia.

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For more information on this press release or to interview ASI chief executive Mark Cain, please contact ASI marketing and communications manager Steven Andrew on 0473 480 964 or [email protected].