Minister for Industry and Innovation Tim Ayres stated that the decision was the outcome of an evidence based and rigorous process carried out by the Commission, emphasizing Australia’s commitment to open and rules based trade. Ayres also noted that the trade measures are aligned with the country’s obligations under international trade agreements.
The decision signals a potential increase in trade tensions between Australia and China, which is Australia’s largest iron ore export market. Australia’s iron ore exports to China are expected to reach approximately AUD 114 billion in the 12 month period ending in June. On the Chinese side, state backed buyers are taking steps to strengthen their pricing power in the market.
According to calculations based on Chinese customs data cited by Bloomberg, China’s steel shipments to Australia recorded double digit growth in 2023 and 2024. However, shipments remained flat in 2025 at around 782,000 tonnes, accounting for less than 1% of Australia’s total steel imports.
Australia’s Department of Industry recalled that the government had previously imposed import duties on certain other steel products of Chinese origin, particularly hot rolled steel coils. Meanwhile, last month the Australian Productivity Commission launched a comprehensive inquiry aimed at protecting the domestic steel manufacturing sector.
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