Industry Analysis & Industry Trends
Revenue generated by the Iron Smelting and Steel Manufacturing industry is expected to fall by 10.3% in 2012-13 to $11.3 billion. The decline follows a larger fall in 2011-12, when BlueScope Steel closed one of its two blast furnaces at Port Kembla. Steel output is expected to drop to 4.8 million tonnes in 2012-13, reflecting the full-year effect of the closure.
Difficult trading conditions since 2007-08, combined with the blast furnace closure, are expected to result in industry revenue falling at an annualised rate of 10.9% over the five years through 2012-13. Despite the fall, the industry remains substantial in size, generating about 0.1% of Australia's GDP.
Export volumes have fallen along with production... purchase to read more
Industry Report - Industry Locations Chapter
Australia's steel production is based at Port Kembla, NSW and Sydney, Laverton and Westernport Bay, VIC and Whyalla, SA. Steelworks were established decades ago and with the exception of Whyalla, their locations tend to reflect the availability of markets rather than access input materials such as iron ore. The importance of New South Wales was greater prior to the wind down and then closure of the former BHP steel operation in Newcastle and capacity reductions at Port Kembla.
Ferroalloy production is based in Tasmania rather than in areas close to either steel industry consumers or manganese mines. Its location was based on the availability of cheap electricity in Tasmania... purchase to read more