Asian steelmakers have accused the Turnbull government of singling them out by launching a sixth inquiry targeting Asian steel "dumping."
The move comes as local producers Arrium and Bluescope struggle with competition from cheap imports.
Dumping occurs when foreign producers land imported products at below the usual cost in their domestic market, and anti-dumping inquiries can lead to special tariffs that raise the price of imports.
Dan Moulis, a lawyer for several Asian steelmakers, said the move was apolitical.
"It's a global overcapacity issue and a global downturn in the industries that use those products. Singling out Asia is not helpful," Mr Moulis said.
Industry innovation and science minister Christopher Pyne said he had directed the Anti-Dumping Commissioner Dale Seymour to inquire into dumping of Asian steel alongside an inquiry already under way into dumping of imported Asian aluminium products.
The move could provide additional help for Arrium and Bluescope, although many of ther products are already covered by anti-dumping duties. But it could also raise the cost of steel for fabrication and construction and create a new bone of contention with China. A similar announcement by the European Commission last week aroused Beijing's ire.
The move comes as the future of steelmaker Arrium's Whyalla works and aluminium giant Alcoa's Portland smelter are both under a cloud - with a combined 4500 jobs at risk - from cheap imports and rising energy costs.
Source: Afr.com