The Australian Steel Institute (ASI) is seeking support from state and federal governments to aid local steel fabricators and manufacturers, following research that revealed significant undercutting by inexpensive imports.
A July 2024 ASI survey showed 86% of steel fabricators and manufacturers had reduced profit margins due to imported fabricated steel priced 15-50% lower than local products. This price disparity is often due to subsidies from the country of origin or dumping practices, which violate international trade rules and create unfair competition.
This issue is severely impacting east coast fabrication businesses reliant on the portal frame market for structural steel and a wide range of other steel product manufacturers. The survey revealed that nearly half of the respondents are restructuring to stay viable, with small and medium-sized businesses employing 20 to 200 Australians being the hardest hit.
Approximately 80% of those surveyed operate at less than 80% capacity, a benchmark for breakeven profitability, with 20% operating below 50% capacity. Due to diminished orders, the ASI has received numerous reports of businesses laying off long-term, skilled staff.
The ASI is engaging with governments to highlight the damage to strategically important local industries and explore relief options. The Anti-Dumping Commission’s ongoing investigations into several complaints involving imported steel products will provide further insights in the coming months.
