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I work at a steelworks in Australia. The economic conditions are not identical to America but a lot of the same pain exists. Australia also has worse Anti-dump
by bigger_cheese 10y ago
I work at a steelworks in Australia. The economic conditions are not identical to America but a lot of the same pain exists.
Australia also has worse Anti-dumping protections then the US. China is dumping steel (i.e selling below cost) into our market - see: http://www.abc.net.au/news/2016-09-28/china-trade-arrangements-questioned-over-steel-dumping/7884026 http://www.abc.net.au/news/2016-09-28/china-trade-arrangemen...
The government deciding to build a submarine fleet 'in Australia' was a huge election issue. The local unions around here are campaigning on forcing state government to use 'local' steel as a condition of their tender process for infrastructure projects. I think they have a point somewhat, it is pretty absurd that they built a sports stadium about 2km up the road from our huge steel plant and imported all the Steel for it.
I don't think there is an easy answer. Throwing the industry the odd submarine or two to supply material for isn't long term sustainable. However If it is enough to kick-start a ship building industry though who knows...
- wycx 10y agoAre any specialty steels (tool steels, etc.) made in Australia, or do we just make low carbon structural steel and a little alloy steel? When I call up steel suppliers and ask if they have any maraging steel, they just laugh at me.
- bigger_cheese 10y agoThe technical capability is there but my understanding is the sales volume is not present for speciality grades to be profitable. It is basically an economy of scale problem unless you make specialised grades in large amounts (thousands of Tonnes) it is not economical. The market for that volume is not there.