Australia’s steel sector, a critical pillar of the nation’s construction and infrastructure industries facing a defining challenge. While global demand for low-carbon steel is growing, the cost of energy threatens to undercut the industry’s transition toward a cleaner, more sustainable future.
That was the clear message delivered at the Australian Steel Institute’s (ASI) national convention in Sydney, where policymakers, manufacturers and industry leaders converged to discuss the state of play for local steel.
A Balancing Act Between Competitiveness and Carbon
In a recorded address to delegates, Federal Minister for Industry Tim Ayres acknowledged both the urgency and complexity of the task. He said the government recognised steel’s strategic importance to Australia’s economic and industrial future but admitted that energy costs, particularly gas, remain a major hurdle.
“We will look at current settings,” Ayres told attendees, noting that access to affordable gas is critical for keeping local steel competitive as the industry modernises and decarbonises.
Australia’s steelmakers are under pressure from two fronts: global competition and the race to net zero. As nations invest in low-emissions manufacturing, those without cost-competitive energy risk being left behind.
The ASI has long warned that without decisive action on energy policy, Australia could forfeit one of its most vital industries, one that supports tens of thousands of jobs and underpins the entire construction supply chain.
The Case for a Gas Reservation Policy
At the heart of the debate is gas. Despite being “awash with natural gas”, as BlueScope Steel’s Chief Executive for Australian Steel Products, Tania Archibald, told the convention, east coast manufacturers are paying some of the highest industrial gas prices in the world.
The ASI is now calling for an east coast gas reservation policy similar to Western Australia’s to ensure that domestic manufacturers have access to competitively priced energy.
Such a move could be transformative. Natural gas is not only essential for current production but also for emerging low-emissions steelmaking processes like Direct Reduced Iron (DRI). This technology, which replaces traditional blast furnace methods, has the potential to cut emissions by up to 60% compared with conventional steelmaking.
Without affordable gas, however, the industry risks stalling before it can make the leap.
Federal Support — But More Needed
Minister Ayres pointed to recent government investments as proof of Canberra’s commitment to the sector. These include $2.4 billion (in partnership with the South Australian Government) to revitalise the Whyalla steelworks and a further $500 million for the Green Iron Investment Fund, a package aimed at accelerating the shift to low-carbon production.
He also praised ASI chief executive Mark Cain for his role in representing industry interests across key government committees.
Still, even with this support, delegates were clear: policy must go further. Affordable, reliable energy, particularly gas, is essential if Australia’s steel industry is to compete globally and achieve its decarbonisation goals.
Protecting Local Fabricators from Import Surges
Beyond energy, another pressing concern is the surge in imported fabricated steel, which is putting additional strain on local producers.
Minister Ayres acknowledged the issue, pointing to the government’s decision to transfer responsibility for Safeguard actions, temporary measures designed to protect local industries from sudden import spikes from the Productivity Commission to the Anti-Dumping Commission.
The shift, he said, is intended to ensure “a level playing field” for Australian businesses.
David Latina, the Anti-Dumping Commissioner, reinforced that message during his presentation to delegates. He noted that of the 60 active anti-dumping cases in Australia, 45 are related to steel products, a statistic that underscores the intensity of international competition facing the local industry.
“The Anti-Dumping Commission will always support local businesses where the evidence is there,” Latina said, adding that the consolidation of Safeguard responsibility under his commission would streamline processes and bring Australia into alignment with international best practice.
Steel’s Role in a Low-Carbon Future
For ASI Chief Executive Mark Cain, the message from the convention was simple: steel remains indispensable to Australia’s low-carbon future. Whether it’s in renewable energy infrastructure, electric vehicles, or green buildings, steel’s versatility makes it a foundational material for sustainable development.
But the industry’s future competitiveness depends on more than innovation, it requires a clear national strategy. That means aligning government policy, energy supply, and investment incentives to give manufacturers the confidence to plan long-term.
Cain outlined how the ASI’s current Safeguard action fits within that broader agenda not as protectionism, but as a necessary stabiliser to preserve capability while the sector transitions.
Why It Matters to Builders
For builders, fabricators, and suppliers across Australia, the outcome of this debate is far from abstract. Steel sits at the heart of almost every project, from framing and roofing to commercial structures and infrastructure.
If energy costs remain high, so too will material prices. That, in turn, flows through to project budgets, timelines, and ultimately, housing affordability.
Conversely, a stable, competitive domestic steel industry would not only secure local supply but also foster innovation in products, coatings, and sustainability standards, all of which benefit the broader construction sector.
A Call for Clarity and Coordination
The consensus emerging from Sydney was that Australia needs a cohesive, forward-looking industrial energy policy, one that recognises the steel sector’s unique position as both an emissions challenge and an opportunity.
As Archibald put it: “Australia should have a natural advantage in manufacturing not a disadvantage. The resources are here. What we need is the will and the framework to use them wisely.”
With more than 270 industry representatives attending the convention, a record turnout the mood was clear. The industry is ready to invest, innovate, and decarbonise. But without affordable energy, that ambition could be forged into frustration.
As policymakers weigh the next phase of energy reform, the stakes couldn’t be higher. Steel is not just another product it’s the backbone of Australia’s built environment.
For an industry that underpins everything from homes and hospitals to bridges and renewables, getting the energy equation right isn’t just a manufacturing issue. It’s a national priority.
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