Australian Steel Association
Opinion Piece - Do Lemmings close their eyes as they jump off cliffs?
As the Industry Minister considers a raft of amendments to Australia’s anti-dumping laws it is worth reflecting on the impacts of inflated input costs on Australian industry.
Case 1 – Quenched & Tempered Plate.
Quenched & Tempered (Q&T) Plate is a heat treated and cooled steel plate that is stronger and harder than ordinary carbon steel.
Q&T Plate is used for the manufacture and repair of machinery, in truck trailer manufacture and for structures where greater abrasion resistance or higher yield strength are required.
In this instance an anti- dumping application was raised against Finland, Sweden & Japan.
This is noteworthy because of the high pricing intrinsic in the value proposition from these countries due to their superior quality as acknowledged in numerous responses from Australian manufacturers.
China, which may have been a more obvious candidate for inclusion, was notably excluded from the anti-dumping application.
Whether the applicants’ supply from their joint venture partner impacted this decision is unclear.
The result of the case is that Australian industry is now subject to input taxes, (their words), that range from 9.6% to 26.1%.
In the quest for a level playing field 9.6% let alone a 26.1% increase in your primary input is difficult to digest if not catastrophic.
As far as the consequences for the future of manufacturing it is perhaps overly simple to consider the Australian jobs at risk:
Affected Australian Industry:
i.e: Australian Manufacturers predominantly using Quenched & Tempered Plate
Australian Manufacturer Number of
Aries Rail 25
Bulk Transport Equipment 70
South East Queensland Tilt Tray 25
TEI Services 15
Tuff Trailers 50
Alliance Laser 28
Bruce Rock Engineering 160
Adelaide Profiling Services 150
Metso Australia > 60
Australian Steel 35
ATA Steel 31
G&G Mining Fabrication >70
Hercules Engineering 100
Total Steel 150
Goldmont Engineering 60
Shephard Transport Equipment 40
Toomey Earthmovers 10
Kennedy Trailers 65
Total `Australian jobs’ at risk 1044
These are only the employees from Australian manufacturers who have responded on this case.
The real number is greater.
Additionally, 3 employees at SSAB Australia recently lost their jobs last week as a result of this case.
Read more here.