MEMBERS OF THE AUSTRALIAN STEEL INSTITUTE (ASI) RECENTLY GATHERED FOR THE POPULAR ECONOMIC BRIEFING SERIES. THE ONLINE EVENT COVERED THE SECTOR’S ECONOMIC OUTLOOK AS THE NATION ENTERS ITS POST-PANDEMIC RECOVERY. THE EVENT WAS DELIVERED WITH THE SUPPORT OF ASI’S CORPORATE PARTNERS, AUSTRALIANSUPER AND BANJO LOANS, AND ALSO SUSTAINING MEMBER, INFRABUILD. THE ANNUAL EVENT SEEKS TO HELP ASI MEMBERS ENHANCE THEIR DECISION-MAKING SKILLS AND REMAIN COMPETITIVE IN THE GLOBAL STEEL SECTOR. Delegates heard from a variety of speakers with knowledge from within, and outside the sector. The topics were wide ranging, including the challenges and opportunities during the COVID-19 health emergency; the ongoing crisis in Ukraine; and the economic outlook for small-medium sized enterprises (SMEs) in Australia for 2022. According to Mark Tierney (Global Economist with AustralianSuper), Australia will leverage its investment
opportunities and expertise with a renewed ambition towards construction projects. “This type of recovery that we’re going through at the moment, is going to be very different from anything that we’ve been through before,” Tierney said. The Australian steel industry is the backbone of the nation’s economy and is vitally important for building the next generation of critical infrastructure. However, the sector came to a grinding halt during the pandemic, which led to a large backlog of projects and a disrupted pipeline. “Part of the problem is that there’s been a big dispersion between goods and services consumption. Goods consumption has roared, whereas services consumption has remained soft as a result of lockdowns,” Tierney said. Analysts predict that when China eases several COVID-related policies, it will have a vital impact on global supply chains and steel demand. “We do have these divergences between economies and these
imbalances, which have developed, and are causing inflationary problems around the world, with the crucial exception of Asia,” Tierney said. China is responsible for over half of the world’s steel production. In 2019, China’s share of global steel jumped from 50.9 to 53.3 per cent—a global trend that has remained steady.
INDUSTRY INSIGHTS | STEEL AUSTRALIA | AUTUMN 2022
RAISING BUSINESS POTENTIAL AT THE ASI'S 2022 ECONOMIC BRIEFING
Tierney gave an in-depth analysis of how the Australian economy has pivoted and recovered from the height of the COVID-19 crisis. In comparison to other countries, Tierney said that policymakers have managed to steer the economy through an “exceptionally difficult period”. “But that’s not to say that there aren’t problems developing,” Tierney explained. He noted the three areas that will challenge the Australian steel and production sector in the next 12 months: 1. Energy transitions 2. China 3. Construction backlogs
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