Australian PM Urges Stronger Ore Trade with China as Steel Industry Faces Carbon Transition

BEIJING—Prime Minister Anthony Albanese met with top Chinese steel industry representatives this week to reaffirm Australia’s role as a trusted supplier of iron ore, even as China accelerates its push toward decarbonization. The diplomatic outreach comes at a time when global steelmakers face regulatory pressure to reduce emissions, potentially altering traditional supply chains.

Albanese, who has faced criticism at home over energy and trade inconsistencies, framed the meeting as a “mutual opportunity” to strengthen ties amid evolving industrial demands. Speaking to delegates in Beijing, the Prime Minister said, “Australia will continue to provide high-quality resources that underpin industrial transformation, including the shift to low-emissions manufacturing.”

However, industry experts warn that Australia’s dominance in the global iron ore market may not remain unchallenged. With China exploring alternative supply routes—including African sources—and investing heavily in electric arc furnace (EAF) technology to recycle steel with lower emissions, demand for traditional blast furnace inputs may gradually decline.

“China’s steelmakers are under pressure to hit carbon neutrality targets,” said Dr. Jack Hannan, a resources policy analyst at the Institute for Global Supply Studies. “They’re not abandoning Australian ore, but they are rethinking the entire production ecosystem.”

The push for greener steel production has already prompted major Chinese firms to diversify raw materials and upgrade processing methods. While Australian ore remains vital due to its quality and scale, the long-term outlook may depend on whether Australia can adapt its exports to meet evolving sustainability standards.

Meanwhile, domestic stakeholders are urging the federal government to take a more proactive stance in resource diplomacy. Some critics argue that while Canberra remains overly reliant on short-term trade gains, it lacks a cohesive industrial strategy for the future of mining and resources—particularly in the context of decarbonization.

Despite geopolitical tensions, the Chinese steel industry remains heavily reliant on Australia’s raw materials. However, shifting regulatory landscapes and green targets mean the Albanese administration must go beyond diplomatic handshakes and ensure policies that support long-term competitiveness and innovation in Australia’s mining sector.