The Federal Government and the Australian Steel Institute have both called for stronger action to be taken to combat the direct and indirect consequences of Donald Trump´s global trade war. The Prime Minister, Anthony Albanese, said Australia will bolster its anti-dumping programs to protect key sectors against unfair competition from abroad. Additionally, he said the Australian government will provide $50 million to affected sectors and will encourage businesses to buy locally manufactured goods. The fear is that steel and other products which had been destined for the United States will now be “dumped” at cheaper prices into countries such as Australia. On April 1, the day before Mr Trump announced the new import tariffs, the Minister for Industry and Science, Ed Husic, wrote to David Latina, the head of the Anti-Dumping Commission (ADC). “I expect you to use all the powers available to you to ensure that Australian manufacturers are not injured by unfair trade through dumping and subsidization,” Husic said. Marghanita Johnson, CEO of the Australian Aluminium Council, welcomed Husic’s direction to the ADC, saying it indicated a “renewed urgency.” She told media outlet Platts, which is part of S&P Global

Commodity Insights, that: “As soon as you get a change in global trade patterns, there’s the potential for diversion [which] may mean the risk of dumping. It doesn’t necessarily follow, but clearly, trade diversion does increase the risk of dumping.” Meanwhile, the Australian Steel Institute (ASI) wants the government to go even further, claiming that imports of fabricated steel into Australia have surged 50% in the past two years. “The ADC system is not readily suited to small- to medium-sized enterprises, which is what the fabricators are,” said Mark Cain, CEO of the ASI, in an interview with Platts. “So, we’re in dialogue with the government about exploring the use of something called a safeguard measure, which is essentially a quota and tariff used to protect sovereign capability. The Europeans and the UK have done it with steel, but it’s a seldom used trade instrument in Australia,” he added. Mr Cain made the point that small enterprises can’t usually fund a multi-year ADC investigation, nor potentially survive the period waiting for an outcome. “Whereas a preliminary tariff determination can be done when it’s apparent there’s injury being caused and they can place a tariff on without the full investigation,” Cain said. The ASI also wants better transparency of currently “opaque” import statistics, which the government could address by improving data visibility. Mr Husic is also seeking the ADC’s advice on establishing a more dynamic public reporting regime. The minister emphasized the need for “timely and accessible remedies to unfair trade,” noting that current cases take too long, which is exacerbating harm to local industries.

Over in South Australia, the Whyalla Steelworks saga has taken a further twist. The background is that the company known as Whyalla Ports is a subsidiary of GFG Alliance, which is owned by the British industrialist, Sanjeev Gupta. The port sits right alongside the steelworks and plays a vital role in shipping both steel and iron ore from the Upper Spencer Gulf. The steelworks is owned by OneSteel Manufacturing, which is also owned by Mr Gupta´s GFG Alliance. As is well known, OneSteel Manufacturing was placed into administration in February by the South Australian Government due to long-standing financial difficulties. On April 2, KordaMentha, the administrator to the steelworks, filed an affidavit with the Federal Court asking for the lease held by Whyalla Ports to be invalidated and the port operations to be re-incorporated into the OneSteel Manufacturing business – for which KordaMentha is the administrator. In essence, the administrator wanted the port facility taken out of Mr Gupta´s hands. Presumably there is a concern that, if Mr Gupta maintained ownership of the port, he could use its operations to hamper the smooth flow of products – at a price. KordaMentha has said that, unless it gains control of the port, it cannot prepare the steelworks for potential buyers. “Any prospective buyer (of the steelworks) will require assurance of access to port facilities before committing to the purchase,” said Michael Korda, of KordaMentha, in the affidavit to the court. At the time of publishing, and to the best of ASN´s ability to discern, GFG Alliance had not agreed to voluntarily relinquish the lease to the port and the matter is therefore in dispute.

The urgency of this issue is underscored by comments made by Mr Korda in his affidavit. He said: “Currently the day-to-day operations (of the steelworks) are continuing to generate losses in excess of $1 million a day. In addition, we are continually required to inject capital into the steelworks because of the poor state of the OneSteel plant and equipment, including operations relating to the port. Based on current estimates, without further funding from the Commonwealth or State it is unlikely that we can continue OneSteel business operations beyond six months from our appointment.”

The consequences of the orders not being granted in the administrators’ favour are dire, Korda claims. “If we are unable to obtain urgent relief and this results in a delay to, or frustration of, the proposed sale or recapitalisation of OneSteel, OneSteel may be forced to close operations because the funding of OneSteel is fixed and of limited duration,” he said. In short, the whole Whyalla Steelworks might close down. The matter has been listed for hearing on May 5, 2025.

Finally, InfraBuild has announced it has finalised its transaction seeking consent from its bondholders to release an additional US$150 million. In a statement, Francisco Irazusta, InfraBuild´s chief executive officer, said: “With the financial surety of this transaction, InfraBuild can continue its work supporting the building of Australia with sustainable steel made in this country, while investing in growing our business using new technology and innovation to deliver the very best products and services for our customers.” He said the company now has a robust cash position, allowing it to operate efficiently through the currently tough market conditions.