BlueScope CEO demands lower Australian gas prices in order to compete
BlueScope, Australia's largest steelmaker, called for lower gas prices in the country on Wednesday and for policymakers?to better support the domestic industry against dumping steel products by China.
Australia has been trying to find ways to reserve more gas on its domestic market, without worrying about the major customers in Asia like Japan and Korea.
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Tania Archibald, CEO of the Melbourne Mining Club, said: "We want an effective domestic gas reserve scheme that includes a price mechanism so there is a balance? between domestic industry, and LNG exports."
Archibald said that Australia's wholesale gas price was three to four time higher than the U.S. and Qatar. He added: "Australian manufacturers can't compete with the current energy and?gas prices."
She said that the Australian domestic gas reservation scheme should lower its delivered price to A$8-A$10 ($5.73-7.16) per gigajoule in order to "ensure competition".
On Wednesday, the Australian Energy Market Operator reported that spot gas prices at Sydney were A$10.88 a?gigajoule.
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She said that policymakers must also improve the resources available to Australia's Anti-dumping Commission, whose backlogs are nearly 18 months long, given China's recent tripling of steel exports from 130 million ton to 240 million tons.
Archibald became CEO of BlueScope in February, after spending 30 years there.
She said that the U.S. steel tariffs "are aimed squarely at China" but the rest of us are collateral damage. China has always denied allegations of dumping cheap steel on international markets and has been cracking down on overcapacity in recent years to curb exports. BlueScope in February rejected a revised A$15 billion bid ($10.7 billion), from SGH and Steel Dynamics, but stated that it was willing to continue discussions.
She said that disruptions as a result of the Strait of Hormuz closure have affected the supply of aluminium which BlueScope relies on in certain products.
BlueScope is very focused on its North American assets which makes up more than half of its asset base, and more 50% of its profits, said she, refusing to comment on reports that it might auction off its Ohio steelmaking facility.
(source: Reuters)
