NEWS

Australian Steel Market Faces Uncertainty Amid Global Trade Shifts

The Australian steel market is navigating a complex landscape, with the recent introduction of 25% tariffs on steel exports to the US by President Donald Trump adding to existing challenges. Local steel producers are already struggling to compete with cheaper imports, with steel imports increasing by 50% over the past two years, partly due to China's construction industry downturn. This surge in imports has raised concerns about Australian manufacturers being outbid by international competitors, potentially leading to a "dumping ground" for substandard steel products. The uncertainty surrounding the steel market has significant implications for Australian businesses and the economy. Companies like ProWay, which rely on steel for their operations, are exploring alternative suppliers due to the instability of domestic supply chains. Furthermore, economists warn that a potential global trade war sparked by the tariffs could lead to a recession, resulting in lower demand for Australian exports, including steel, iron ore, and coal, which account for approximately 70% of the country's exports.