'Free trade extremists to kill off steel'

Independent senators have hit out at the "free-trade extremists" in the federal government who won't commit to using Australian steel for shipbuilding projects.

The federal government purchases 1.3 billion tonnes of steel a year and Nick Xenophon, John Madigan and Jacqui Lambie believe local steel should be favoured otherwise Australian steelmakers will cease to exist.

Senator Madigan, a qualified blacksmith, told reporters in Canberra that Australian steel was almost three times cheaper to roll compared to foreign imports.