Options for localising steel inputs for the infrastructure build programme

The steel value chain has been in a long-term downturn since the mid-2000s. Only the mini mills, which produce long steel, and parts of downstream manufacturing have grown. The new public infrastructure build programme, especially for electricity and rail, should support recovery by boosting domestic demand. It may, however, just fuel imports unless accompanied by policies to promote sustainable local procurement. This paper reviews the economic logic behind localisation and experiences in the public infrastructure push in the 2010s. It outlines the main instruments currently in place to support localisation – that is, tariffs, product designations, and support for actual and potential suppliers. An assessment of the costs, benefits and risks of these instruments follows. The final section indicates some next steps.