Australian Steel Association CEO David Buchanan comments on the economic outlook of global steel producers, claiming “there’s a real nervousness” in the industry.
“It’s a very turbulent time Edward, as you know, with Mr Trump announcing the additional tariffs today on China – I think theres a real concern in the industry, our steel distribution companies have invested heavily in automated equipment to process and further work the products that are used then in downstream fabricators in construction,” Mr Buchanan said.
“There’s a real nervousness around the current situation, obviously economies of scale, China, much bigger fabrication capability.
“We are exposed to much lower energy costs and wage costs overseas, so for the local fabricators, the local distribution companies, we’re paying Australian wages, we have a lot of compliance issues … we really do have significant headwinds in the Australian steel industry for the next few years.”
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