Imported steel products in Australia could be subject to import duties or quotas if an application for emergency relief from the nation’s local industry is granted.

The Productivity Common has called for submissions in regard to its inquiry into fabricated structural steel safeguards.

The inquiry will examine whether safeguard measures should be applied against a range of fabricated steel product imports to help local industry cope with a surge in imports.

This follows an application for emergency trade relief measures that was lodged by the Australian Steel Institute (ASI) in November.

Essentially speaking, emergency safeguard measures involve tariffs or quotas which can be applied on imported products in limited emergency circumstances such as a surge in products which are imported from overseas.

As with anti-dumping duties and countervailing duties, safeguard measures are recognised internationally as a reasonable trade measure and are allowable under WTO rules.

Unlike anti-dumping duties and countervailing duties, however, safeguard measures are temporary emergency measures to be applied in extraordinary circumstances only.

They aim to provide the domestic industry with ‘breathing space’ to allow it to adapt to new economic realities.

The inquiry comes amid concerns from local steel makers about the Australian market being flooded with cheap imports as Chinese producers redirect excess stock in response to US tariffs.

In its application lodged in November, ASI said that there has been an unprecedented surge in low-price imported fabricated steelwork.

This was threatening the viability of the local fabricated steel industry, which consists of more than 1,000 businesses who collectively employ more than 20,000 people.

If not addressed, ASI argues that this could result in the loss of domestic sovereign manufacturing capability which has been built over decades.

In its submission, ASI said that the impact of the import surge has been significant.

In Western Sydney alone, it has been advised that more than a dozen steel fabrication businesses have closed over the past 18 months.

Most of these closures were a direct result of competing against very low-priced fabricated structural steel imports.

On a national scale, the ASI warns that the impact is at least three to four times greater than this.

It says that impacts upon businesses that are still operating are severe.

For example:

• 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 percent.  Three years prior, it was 90 percent.
• A Queensland-based steel fabricator has incurred progressively worsening operational losses such that over the period 2023 to 2025 it has made 35 percent 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.

It says that emergency measures will help to preserve capacity for an industry which is essential in delivering important assets for critical sectors such as housing, infrastructure and defence.

Submissions are due by April 20.

These will help to inform both the interim and final reports.

Further opportunities to make submissions, including in response to the interim report and in response to submissions from others, will also be provided later in the inquiry.

The Productivity Commission will meet with some participants before and after the release of the interim report.

Public hearings will be held and the Commission will also gather other data to inform the inquiry.

The Commission’s interim report is due on 23 September whilst its final report is due on 23 November.

Building industry lobby groups are considering whether to support or oppose the measures.

In a statement provided to Sourceable, Master Builders Australia CEO Denita Warn said that the MBA will be seeking feedback from their members to inform their advocacy on this issue.

Wawn said that Master Builders Master Builders continues to monitor the construction supply chain as any impacts can push building costs higher and contributes to Australia’s housing affordability challenges.