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The Australian steel industry has been in trouble for the last few years with revenues declining steadily. This is expected to be the case over the short to medium term as well with estimates having the market falling from *** billion U.S. dollars in 2017 to *** billion U.S. dollars in 2023. Even though it’s difficult to put a finger on when the market started crashing, Arrium’s collapse in 2016 with debts of over *** billion U.S. dollars seems to be a good starting point. One of the main factors behind this depressed market is low global prices which is the result of global oversupply and illegal dumping. Another reason is China’s increasing influence on the global steel industry both in terms of consumption and production. In fact, six of the top 10 steel producers in the world are based out of the country.

The outbreak of the Covid-19 virus has had a major impact on the global steel industry with a sharp fall in demand in sectors such as automobiles and construction. Even though Australia is not majorly affected, demand is expected to witness a sharp fall in the short term, with a rebound in 2021.