July 5, 2024

Steel Market Summary - Australia

Rise In Housing Approvals Encourages Steel Industry 

Large government-funded infrastructure projects have been the saviour for steel consumption since the pandemic, and continue to be so. Construction in its many forms, both public and private, has fared less well and often for complex reasons related more to activities abroad rather than any mis-management at home. Meanwhile, in the domestic housing sector, the equation is quite simple: the more houses being built, the more steel is required. It is for this reason that the mood over the past 12 months to the end of May – insofar as it relates to housing – had been depressed. According to the Australian Bureau of Statistics (ABS), total dwellings approvals for the year were down by 8.5%. Fortunately, however, there was an uptick of 1.9% in April and, in figures released on 3 July by the ABS, in May total dwellings approved rose by 5.5%. “The rise in approvals in May was driven by private sector dwellings excluding houses which rose 16.3%. Private sector house approvals also rose by 2.1%,” said Daniel Rossi, ABS head of construction statistics. Total dwelling approvals rose in all states, with Western Australia the most significant at 19.6%. Victoria followed with 8.9%, Queensland 6.3%, South Australia

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4.1%, Tasmania 3.8% and NSW 2.9%. Could it be that investors and home buyers are convinced the tightening of money supply has definitely ended and that interest rates may soon to fall? The steel supply chain would certainly hope so.

News from one of ASN´s advertisers, Australian Steel & Wire (ASW). Perth-based ASW has teamed up with America-headquartered Jennmar, which provides infrastructure products and specialized services to the civil, solar, mining and construction industries around the world. Jennmar now holds a majority stake in ASW, which will be integrated into the Jennmar Australia group of companies. Jennmar Australia was established in 1997 and manufactures ground support products in NSW, Queensland and Perth.

“ASW is excited to join the global Jennmar business as a provider of high-quality mesh and wire products to an extended customer base around the globe. We see tremendous opportunity in working together as part of the Jennmar team and the new growth this will bring to the ASW business,” the CEO of ASW, Richard Sobey, told ASN.

“Richard has built a solid team and has many years of mesh manufacturing expertise to add to the Jennmar group of companies,” said Tony Calandra, CEO of Jennmar. “We look forward to expanding ASW’s capabilities and utilizing its low-cost operations in Malaysia to serve our growing international hard rock and soft rock base,” he added. ASW’s product range includes galvanized and stainless-steel welded mesh, cut wire, wire coils, 358 security mesh, temporary fencing infill panels, barb wire, fencing wire, tie wire, hinge joint farm fencing, and dog mesh. The company supports the building, industrial, mining and rural farming industries.

Readers may have missed World Environment Day, which was celebrated in early June. But its relevance to the steel industry cannot be ignored, given that steelmaking is one of the heaviest polluting industries on the planet, contributing 7 – 9 % of all CO2 emissions. That´s why words such as “sustainability” and “green steel” have found their way into the centre of all steel conversations in recent years. The need for the global steel industry to re-shape itself – indeed, in some areas to re-invent itself – has become paramount. It´s already clear that intelligent companies have sniffed the winds of change in public opinion (and thus political opinion) and are becoming increasingly vocal about their green ambitions. On their websites and in so many of their public communications, such companies take every opportunity to proclaim their green credentials. Sustainability is the buzz word.

In his June Update, the CEO of InfraBuild, Francisco Irazusta, touched on this subject. He said InfraBuild had recently updated its reinforcing bar Environmental Product Declarations (EPDs) to include the SENSE 600® product range. “Our EPDs, published by EPD Australasia, are independently verified and provide certified transparency around the environmental performance of our products. This not only supports the sustainable application of our products but also delivers immense value to our customers and the construction industry,” Irazusta declared. A few years ago, EPDs didn´t exist. Now everybody wants one. Irazusta also commented that InfraBuild recycles around 1.4 million tonnes of scrap metal each year, thus ensuring the material doesn´t go into landfill. The scrap is fed into the company´s more environmentally-friendly electric arc furnaces to produce new steel products. An example is the SENSE 600® reinforcing steel which is made from 100% recycled scrap steel and delivers a vastly improved embodied carbon outcome.

At Australian Steel News, we´ve decided it´s time to give everyone in the steel and metals industry the chance to publicise their green credentials. In early September, our companion website, AustralianSteel.com will publish a special feature focussing on sustainability. The feature will give all steel manufacturers, importers, distributors, fabricators – everybody in the supply chain – the opportunity to publicly state how they are including sustainability and climate awareness in their products and the way they do business.

Large and small, every business in Australia, New Zealand and beyond is invited to state its case. At a glance, the reading public will be able to discern which companies are the progressive and environmentally-minded ones. In AustralianSteel.com special features take the form of a directory. (Click on Special Features on the menu toolbar of this page and you´ll see what we mean). The Sustainability special feature will remain visible on the website for 12 months. AustralianSteel.com attracts more than 4,000 individual visitors each month: who make more than 12,000 individual page hits. If you are in the special feature, chances are that your company´s green ambitions will be seen by a vast domestic and international audience.