AUSTRALIAN investors are being asked to be ready for a shortage of steel pipes due to a boom in domestic construction, the Government said on Tuesday.
The Federal Government has warned that steel construction is on the rise due to the high cost of building and maintenance, and has set out plans to increase the supply of these materials to help Australia meet its steel needs.
In response, Australian Steel Infrastructure has been providing advice to investors on how to cope with the supply crunch.
“The steel industry is booming, and with that growth comes increased demand for steel, particularly for residential projects,” said Steve Young, a managing director at Australian Steel.
He said steel pipe was the biggest item of demand, followed by concrete, cement, steel and aluminium.
Australia has a massive steel industry, but there is no one to supply it.
“That’s one of the biggest concerns that’s been raised about the availability of steel in Australia,” he said.
Steel pipe is the material that makes up most of the world’s pipes.
A number of countries have had to introduce restrictions on construction, including the United States, Britain, Italy and China.
However, in Australia, the industry is already expanding.
With more than 20 million households using steel pipes, the government has been increasing the supply by using pipe as a fuel to build homes.
It has been testing new materials in the hope they will help make it more resilient to weather events.
Some of the materials are being tested in Australia and are being used in steel construction projects in the US.
Earlier this year, the Australian Government announced that it would be spending $1.5 billion to boost the supply.
This will include using pipe in new homes and infrastructure projects.
According to the Government, the price of steel pipe has increased by about 10 per cent over the past five years, driven by the rise in construction.
There is no shortage of supply, with new pipes coming on stream every year.
Investors have been asked to use their funds to buy new steel pipes at a lower price.
For more information, visit the Australian Investment Bank’s website.