Australian authorities on Monday launched an inquiry into steel imports from China and four other Asian nations as domestic manufacturers suffer under the strong Aussie dollar.

Customs said it would examine dumping and subsidisation of "certain hollow structural" steel products from China, South Korea, Malaysia, Taiwan and Thailand after a complaint from OneSteel, Australia's second-largest steelmaker.

"The application alleges that the goods have been exported to Australia at prices less than their normal value and that, in the case of China, countervailable subsidies have been received in respect of the goods," Customs said.

"The application claims that the dumped and subsidised exports have caused material injury to the Australian industry."

Officials would examine imports between July 2010 and June 30 this year for evidence of OneSteel's complaint, and look back as far as July 2007 for proof of injury to the steelmaking industry.

If upheld, Customs said the complaint could require the government to provide subsidies to Australia's steelmakers.

The inquiry is due to report back by February 2012.

Once a thriving local industry, Australia's steelmakers now say they are in crisis, with fast-industrialising Asian nations including China able to offer the key construction product at unbeatably cheap prices.

Canberra has stressed its commitment to a local steel industry after BlueScope Steel, Australia's largest firm by output, said it would abandon its export business and axe 1,000 jobs in the face of stiff competition last month.

The government appointed a manufacturing envoy to help the troubled industry secure more contracts from major companies such as BHP Billiton, Rio Tinto and Woodside Petroleum, who all reportedly favour Chinese products.

But the Aussie's sustained rise against the greenback -- it breached parity in October -- and surging commodity prices are hurting manufacturing in general, with the industry expanding just twice in the past 12 months.

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