"With the renewed calls for a retreat from free trade resembling a vampire once again rising from its crypt, economic reformers will need to equip themselves with wooden stakes if costly steel socialism is to be averted".

It is amazing just how certain that such authors are about 'the' answers. All the govts and societies now moving back towards greater protection, because the idea of free trade was never perfect or imperfect, but others see the world so clearly.

The line about cheaper inputs sourced overseas is odd given that Australia's west coast supplies iron ore and our east coast supplies coking coal to Asian steel mills. Admittedly Asia may supply economies of scale and cheap labour but nor does it have carbon tax. Therefore I think imported steel should be slapped with a carbon tariff which I calculate should be around 1.7 X $23 = $39 a tonne on basic slab steel, more for rolled or extruded products.

That may not be enough to save Bluescope however. It's not clear if Whyalla's OneSteel can hang on or they have other business prospects lined up. It would be a sad day if Australia had no steel industry and relied entirely on imports. Then we would be at the mercy of cartels.