ABC Q and A panel debates ‘Buy Australian’ steel | Australian Markets

A patriotic ‘Buy Australian’ fervour emerged on ABC’s flagship Q and A political debate program on Monday night time, with the home metal industry taking centre stage amid US President Donald Trump’s imposition of tariffs on native producers.

South Coast Labour Council secretary Arthur Rorris requested the panel whether or not “buy Australian” ought to increase from shopper merchandise like cheese and alcohol to incorporate metal and aluminium, with state and federal governments doubtlessly mandating the acquisition of home metal merchandise for large-scale tasks.

NSW Treasurer Daniel Mookhey mentioned his authorities was actively trying to buy native metal and it introduced a “win-win” option for governments.

“You can buy Australian if you want world-class steel,” he mentioned.

“We talk down the quality of our steel industry.

“BlueScope Steel in the Illawarra does an amazing job of producing steel for renewable energy but also for trains.

“As a relatively new government here in NSW, we are adopting a policy that says, we are looking to buy steel from Australia, aluminium from Australia.

“We equally want to use our purchasing power to put Australia into global supply chains … we thought that before the tariffs were there.”

Prime Minister Anthony Albanese has known as for Australians to “buy Australian” within the wake of President Trump imposition of 25 per cent tariffs on Australian metal and aluminium.

Australian Monetary Assessment editor Michael Stutchbury warned a coverage mandating the acquisition of Australian metal forward of doubtlessly cheaper international sources may drive up the nation’s “cost structure” and damage Australians.

“It would hurt us,” he mentioned.

“The ‘buy Australian’ thing can be – not a bad thing in itself – some patriotism and encouraging Australians to get behind, in the supermarket and buy things … but if you are buying something like steel which costs more than that world market that you can get elsewhere, you are putting up your cost structure, which means other parts of your industry become less competitive.”

Preferencing native metal forward of cheaper options may drive up the associated fee of housing, he added, which might in flip degrade the power of Australians to buy properties.

“If we go for cheaper steel where we get it, we can reduce the costs of things like housing, a big problem,” he mentioned.

Mr Rorris, who represents metal staff at BlueScope’s Port Kembla plant, hit back at Mr Stutchbury’s arguments, claiming the metal spot price on the US market was $930, whereas in China it was $450.

“If we can’t match that we lose our steel industry,” he mentioned.

Mr Stuchbury mentioned if China dumped metal into the Australian market beneath the associated fee of manufacturing, there have been measures the federal government may take in opposition to that motion.

Mr Mookhey argued that whereas Chinese language metal would possibly seem cheaper than an Australian option, over the long-term shopping for home metal may save governments money.

“What can I say is the previous government in NSW did buy a lot of its steel from China as part of the infrastructure program,” he mentioned.

“(The Chinese steel) is not of the same quality.

“We have to pay to adapt them to Australian standards anyway. This is the point.

“You can look at it at the simple point of signing the contract or the whole-of-life of the project.

“What we are learning as a state government is that when it comes to things like trains, once you factor in everything you pay, having local manufacturing is really helpful when, for example, trains break and you need to repair them.

“The fact you can bring in the same sort of steel that, rather than having to ship it from the other side of the world, is a real cost saving … we as a state government are looking to buy more because it actually saves us money.

“It props up jobs. It’s a win-win.”

The US imported about $638m value of Australian metal in 2024, the UN’s ComTrade database reveals.

ASX-listed BlueScope Metal operates the giant Port Kembla steelworks in NSW, which types a key half of Australia’s home steelmaking capability together with the Whyalla steelworks in South Australia.

Shadow trade spokesman Kevin Hogan and International Coverage deputy editor Amelia Lester additionally appeared on this system.