The consequences of cheap Chinese steel are starting to show, with an Auckland steel company forced to lay off staff.

E Tu is renewing calls for an inquiry into the alleged dumping of Chinese steel in New Zealand.

E Tu Industry Co-ordinator Joe Gallagher said IMG Structural of Takanini has axed an entire shift, affecting five workers, because of the Chinese imports.

He said tonnes of fabricated beams from China are sitting on the wharves, and it's affecting the financial fortunes of NZ Steel.

Gallagher argues the cheap imports mean less demand for locally made steel, which means businesses are suffering.