Australia Steel Market Size, Share Analysis and Forecast Report (2024-2032)

Australia Steel Market Trends

The Australia steel market is benefiting from a strong local production base, ensuring a stable supply and reducing reliance on imports. Investments in advanced technologies improve production efficiency and product quality. Green steel initiatives help cut emissions, supporting sustainability efforts. As a significant exporter, Australia strengthens its trade ties, especially in the Asia-Pacific region. The growing demand for steel in the automotive sector further drives market growth and economic expansion. In 2022, Australia's iron and steel exports were valued at USD 1.54 billion, as reported by the United Nations COMTRADE database.

Infrastructure development is a significant trend of the Australia steel market, with rising demand fueled by housing expansion and large-scale construction projects. The defence sector also relies on steel for materials and equipment, enhancing national security. The steel industry provides considerable employment opportunities, positively impacting local economies. Domestic production helps reduce dependence on international markets and ensures price stability. According to the ABS, Australia produces approximately 5.7 million metric tonnes of steel each year.

Australia Steel Market Growth

The Australia steel market revenue is bolstered by its significant contribution to the country’s GDP, driving economic growth. Technological innovations, such as automation and AI, are enhancing efficiency and lowering production costs. With relatively low energy costs, Australia remains an attractive destination for steel manufacturing, encouraging further investment. Ongoing research into advanced alloys and recycling technologies keeps the sector competitive. The industry is also focused on sustainability, aiming to reduce energy consumption and adopt low-emission production methods. In January 2024, BlueScope Steel introduced AI-powered robotics in its production facilities across Australia to improve product consistency and reduce energy use, further boosting operational efficiency.

The demand of Australia steel market is closely linked to the mining sector, particularly iron ore, which supports local steel production. Innovations in steel products, especially in sectors like aerospace and healthcare, drive market growth. Steel is essential in various industries, including energy, agriculture, and shipbuilding. Government policies and incentives are strengthening the sector’s competitiveness globally. As steel demand grows in emerging sectors such as renewable energy and electric vehicles, the steel industry is poised for long-term growth. In November 2023, Liberty Steel Australia launched its 'Green Steel' initiative, aiming to reduce carbon emissions by 20% by 2025, positioning Australia as a leader in sustainable steel production.

Australia Steel Market Insights

• According to industry reports, Australia has the potential to secure 6.5% of the global steel market, generating USD 41.6 billion in annual export revenue.
• In 2023, Australia imported 6.6 million metric tons of steel products, with China, Japan, and South Korea being the main suppliers, as reported by the ABS.
• Australia's crude steel production in 2023 amounted to 5.4 million metric tons, according to the World Steel Association.

Industry News

February 2024

Liberty Steel introduced a cutting-edge green steel production technology at its Whyalla plant in South Australia. This innovation reduces carbon emissions by replacing traditional blast furnace methods with hydrogen-based processes, supporting Australia's sustainability goals. The development reinforces Liberty Steel's position as a leader in low-carbon steel manufacturing.

January 2023

BlueScope Steel revealed a major investment plan to expand its production capabilities at the Port Kembla facility. The initiative aims to cater to the rising demand in the construction and automotive industries while enhancing operational efficiency and reducing carbon emissions.

Australia Steel Market Drivers

Shift Towards Sustainable Steel Production

The Australia steel market is placing greater emphasis on sustainability, with a strong focus on green steel initiatives to reduce carbon emissions. Companies are investing in advanced technologies such as hydrogen-based steelmaking, carbon capture, and recycling processes. These developments align with global environmental objectives and Australia’s commitment to cutting its carbon footprint. Rising consumer demand for eco-friendly products, alongside government policies encouraging green manufacturing, is driving this transition. This movement not only benefits the environment but also establishes Australia as a leader in low-emission steel production, boosting its global competitiveness. In March 2023, GFG Alliance’s Whyalla steelworks began trials of hydrogen-based steel production, further advancing Australia’s push for cleaner manufacturing practices.

Integration of Advanced Technologies

The Australia steel market dynamics and trends are being shaped by the adoption of advanced technologies like automation, artificial intelligence (AI), and the Internet of Things (IoT), all of which are driving improvements in production efficiency and cost reduction. Automation in manufacturing improves productivity, cuts labour expenses, and boosts safety in steel mills. AI and machine learning are being used for predictive maintenance, increasing operational uptime, and reducing unexpected downtimes. Additionally, IoT enables real-time monitoring and optimisation of production processes, improving resource utilisation and quality control. These technological advancements help Australian steel producers stay competitive in the global market while improving operational efficiency and product quality. In October 2023, the ASI highlighted the adoption of digital technologies like automation and predictive maintenance tools in Australian steel mills, which boosted productivity.

Opportunities in the Australia Steel Market

Rising Demand for Steel in Electric Vehicles (EVs)

The Australia steel market share is growing as the demand from the automotive sector, particularly electric vehicles (EVs), increases. Steel remains vital in the production of vehicle frames, bodies, and components, with a shift towards lightweight, high-quality materials to improve fuel efficiency and overall performance. As Australia embraces more sustainable transportation, the demand for advanced steel in EV manufacturing continues to rise. Steel producers are investing in the development of high-strength, lightweight, and recyclable materials to meet the evolving needs of the EV market. This trend is bolstered by government incentives promoting clean energy and EV adoption. In March 2024, Ford Australia announced plans to use more advanced high-strength steel in its new EV range, in response to the growing demand for electric vehicles within the Australian market.

Market Restraints

The Australia steel market faces several key restraints impacting its growth. High energy costs, essential for energy-intensive production, make local steel less competitive against countries with cheaper energy. The industry also depends on imported raw materials like coking coal, which can be disrupted by global supply chain issues.

Environmental and regulatory pressures, including stricter emissions regulations, challenge producers to transition to greener steel-making technologies, requiring significant investments. The market also faces stiff global competition, particularly from nations with economies of scale and lower production costs. Additionally, the industry suffers from technological lags, labour shortages, price volatility, and trade barriers, all of which affect market stability and competitiveness.

Australia Steel Industry Segmentation

“Australia Steel Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Product

• Flat Steel
• Long Steel

Market Breakup by Type

• Carbon Steel
• Alloy Steel
• Stainless Steel
• Tool Steel

Market Breakup by End Use

• Construction
• Mechanical Engineering
• Automotive
• Domestic Appliances
• Metalware
• Agricultural
• Others

 Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Australia Steel Market Share

By Product Insights

The growth of the Australia steel market is driven by the widespread use of flat steel products across various sectors, including automotive, construction, and manufacturing. These products provide high strength, durability, and versatility for applications such as vehicle bodies, appliances, and infrastructure. The rising demand for lightweight, high-quality materials in the construction and automotive industries is further boosting the value of flat steel. In November 2023, BIS Shrapnel reported an increase in demand for flat steel, particularly in Australian infrastructure projects, with advanced flat steel products playing a key role in structural applications, driving sector growth.

The Australia steel market is benefiting from the strong demand for long steel products, which are essential in sectors such as construction, mining, and infrastructure. These products, including beams, rods, and rails, are crucial for building bridges, railways, and other key infrastructure. The growth of large-scale infrastructure projects has driven a notable rise in demand for long steel. In December 2022, the Australian Government allocated additional funding to support local long steel production as part of a broader strategy to strengthen the country’s manufacturing sector. This initiative is aimed at reducing reliance on imports and fostering job creation within the steel production industry.

By Type Analysis

Carbon steel is a key element in Australia steel market, extensively utilised across the construction, automotive, and manufacturing industries. Renowned for its strength and cost-effectiveness, it is the preferred material for producing structural steel, pipelines, and heavy machinery. Its versatility, durability, and affordability make it crucial for various industrial applications, driving economic growth. According to the Australian Bureau of Statistics (ABS), Australia produced around 5.4 million metric tonnes of crude steel in 2023, with a significant portion being carbon steel, meeting the demand from both domestic construction projects and international export markets.

According to the Australia steel market analysis, alloy steel dominates the market. It is vital for high-performance industries such as aerospace, automotive, and manufacturing, offering exceptional strength, toughness, and resistance to wear and corrosion. Alloy steel is crucial in the production of heavy-duty machinery, tools, and high-performance vehicles. In 2023, the Australian Government allocated funding to research the development of new alloy steel manufacturing technologies. This initiative aimed to boost the capabilities of Australian steel producers, focusing on the production of high-performance alloy steel that meets international durability and resistance standards, particularly for sectors like mining and defence.

By End-Use Insights

The construction sector plays a pivotal role in driving strong demand in the Australia steel market. Steel is used in structural frameworks, reinforcement bars, and roofing materials. Its strength, durability, and versatility are crucial for large-scale infrastructure projects like bridges, roads, and commercial buildings. Additionally, steel’s involvement in the growing housing market further elevates its significance, supporting economic growth. Australia’s construction industry contributes around USD 162 billion annually to the economy, accounting for approximately 10% of the GDP. In January 2024, the value of new residential construction projects in Australia surged by 19.4%, reaching USD 7.14 billion.

According to the Australia steel market report, the automotive industry dominates the market, where steel is used in vehicle frames, bodies, and components. The demand for lightweight, high-strength steel is increasing to improve fuel efficiency and meet environmental standards, particularly for electric vehicles (EVs). Steel’s vital role in automotive manufacturing fuels the industry’s growth, bolstering Australia’s manufacturing sector and contributing to job creation in the automotive supply chain. In 2022, Australia’s automotive industry produced over a million new vehicles, with SUVs and light commercial vehicles accounting for 76.8% of sales, according to FCAI.

Australia Steel Market Regional Insights

New South Wales Steel Market Regional Insights

New South Wales offers strong infrastructure and manufacturing capabilities, boosting steel production. The region benefits from its proximity to major ports and a well-established industrial base, enhancing domestic demand and export capacity. According to the Australian Bureau of Statistics (ABS), NSW's steel industry produced 2.6 million tonnes in 2022, with domestic sales accounting for 2 million tonnes. Exports to Asia made up 15%, while imports mainly came from China and Japan.

Queensland Steel Market Trends

As per the Australia steel industry analysis, Queensland's steel market is driven by a strong mining sector and growing demand for construction materials. The state benefits from its proximity to international markets and strategic access to major ports. According to the ABS, Queensland produced 1.3 million tonnes of steel in 2022. Steel sales reached 1.1 million tonnes, with exports to Southeast Asia accounting for 18%. Imports mainly came from China and South Korea.

Western Australia Steel Market Dynamics

Western Australia's steel market thrives on mining and infrastructure growth, benefiting from high-quality steel production for the resource sector. Export demand is significant, especially for projects in Asia and the Pacific. WA’s steel industry produced 800,000 tonnes in 2022. Domestic sales were 650,000 tonnes, with exports comprising 25% (mainly to Asia). Imports, primarily from China, totalled 200,000 tonnes, according to industry reports.

Competitive Landscape

The Australia steel market key players specialise in supplying a diverse range of steel products to industries such as construction, automotive, engineering, and manufacturing. They provide high-quality steel, including structural, stainless, and galvanised varieties, along with value-added services like cutting, processing, and delivery. These companies prioritise customer satisfaction, offering customised solutions to meet clients' specific needs. Renowned for their reliability, fast turnaround times, and competitive pricing, they utilise advanced technology and a skilled workforce to support businesses of all sizes, from small enterprises to large-scale industrial operations, establishing themselves as trusted partners in the Australian steel industry.

Key Industry Players

Vulcan Steel (Australia) Pty Limited: Established in 1997 and headquartered in Brisbane, Queensland, Vulcan Steel is a leading Australian steel distributor. It offers steel products and services across various industries, including construction, manufacturing, and infrastructure, with a strong focus on quality and customer satisfaction nationwide.

Master Steel: Founded in 2001 and based in Melbourne, Victoria, Master Steel distributes a wide range of steel products to industries such as construction, automotive, and engineering. The company provides steel-cutting and processing services, ensuring high-quality solutions for Australian clients across diverse sectors.

InfraBuild Trading Pty Limited: InfraBuild Trading, established in 2007 and headquartered in Sydney, New South Wales, is a key supplier of steel products for the construction, infrastructure, and industrial sectors. As part of InfraBuild Group, it prioritises sustainability and innovation in its product offerings and services across Australia.

BlueScope Steel Limited: Established in 1885 and headquartered in Melbourne, Victoria, is a global leader in steel manufacturing and distribution. The company produces a wide range of steel products for construction, automotive, and manufacturing industries, with a strong focus on sustainable steelmaking practices in its operations worldwide.

Other key players in the Australia steel market report are Steel Fabrication Services, among others.

Recent Developments

July 2024

Orrcon Steel officially opened its new Unanderra mill, designed to meet demand across sectors such as infrastructure and renewables. Equipped with advanced robotics and automation, the state-of-the-art facility could produce up to 90 metres of tubular products per minute, including large circular, square, and rectangular hollow sections up to 10 inches in diameter.

January 2024

Australia's first green steel mill was established in Collie, Western Australia, using hydrogen-based technology to reduce carbon emissions in steel production. The initiative supported Australia's transition to renewable energy, created jobs, diversified Collie's economy, and boosted hydrogen production. It aimed to help achieve climate goals and reduce industrial emissions.