A group of businesses presented a petition on Thursday with 15,300 local signatures – from butchers to galvanisers and painters – to the NSW Government asking for the immediate implementation of a local procurement policy. Policies like Buy American are common overseas. In Australia, the Victorian Labor Government has a local steel policy for a major level crossing project, while the WA Liberal Government has specified 98 per cent local steel on its East West road link project.

Ian Waters, a project engineer with K&R Fabrications, said it was an "absolute disgrace" that taxpayer-funded projects were being built without a requirement to buy local. Some imported steel was used in projects near Port Kembla, including the WIN stadium and the Gerringong bypass. Like many local companies that service and supply the steelworks, the company had already seen its business cut as the steelmaker rationalised to keep the mill running.

The owners of the steelworks, BlueScope Steel has said they have to cut as much as $200 million a year (including 500 jobs) out of its costs of turning iron ore into steel if it is compete with cheap foreign steel.

Read more The do or die decision facing Port Kembla

If BlueScope can't make these savings by its November board meeting, its other option is to close the entire steelworks, costing 5000 jobs onsite.

Mr Waters said some contractors had already gone out of business because of cost cutting by the steelmaker.

"We are not whingeing about BlueScope's need to cut costs. Although it is counter-intuitive, we 100 per cent support that they have to make cutbacks in order to stay viable."

The Australian Workers' Union says a closure would take $3.3 billion out of the local economy, costing at least 10,000 jobs, and threatening hundreds of local business, suppliers and contractors.

In addition to calling for a buy local policy, the secretary of the South Coast Labour Council Arthur Rorris, is seeking an urgent meeting with the Anti-Dumping Commissioner to take immediate action to stop dumped foreign steel.

The AWU and the Labour Council say the rally will send a strong message that the community is prepared to mobilise on something that was critical to the future of the region.

Mr Rorris called on the new Prime Minister Malcolm Turnbull to take action. "Here's his chance to show he is prepared to do what Tony Abbott wouldn't, and that is intervene to save our industry."

For those who lose their jobs, the prospect of finding other work was significantly less than it was in 2012 when 1100 steelworkers lost their jobs, said an economist at Wollongong University Dr Martin O'Brien. The unemployment rate for ex-BlueScope workers was 40 per cent. For those aged 55-59 it was approximately 50 per cent, and for those 60-64 was 60 per cent.

Back then, job losses were offset by the mining sector boom. "Now, with another significant round of job losses, a depressed local labour market, and the end of the mining boom, it is highly likely that the unemployment rates will be much worse. I would not be surprised to see over 50 per cent of the redundant workers remaining unemployed for a long duration."

A motion demanding a report on the damage caused by dumped sub-cost steel, and other emergency measures, has already passed the Senate, reported the Illawarra Mercury.

Greens senator Lee Rhiannon's call to save the steel industry - and BlueScope Steel's Port Kembla steelworks - was supported by Independent senators John Madigan and Nick Xenophon, along with Labor senator Kim Carr.

The motion noted "urgent action" was needed to ensure Australia doesn't lose its steelmaking capacity.