The closure of ArcelorMittal’s long-steel plant in Newcastle is a striking example of the government’s inconsistent economic policies. While the official stance promotes the beneficiation of raw minerals — transforming them into high-value products to maximise job creation and economic growth — the actual policies in the steel sector tell a different story.

Government interventions have disproportionately supported scrap metal use over primary steelmaking, particularly through the scrap preferential pricing system, whereby local mini-mills can purchase scrap metal at discounts of up to 40% on international prices. Additionally, the imposition of a 20% export duty on scrap metal further advantages mini-mills over integrated steel producers such as ArcelorMittal. This bias is compounded by the substantial financial support these mini-mills have received from state entities such as the Industrial Development Corp. ..

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