Arrium's former management contributed to the steelmaker's financial plight by purchasing mines and piling on debt, a former head of the company says.

The company has debts of more than $4 billion and was placed into voluntary administration on Thursday, putting more than 8,000 jobs at risk nationwide.

Bob Every was the chief executive officer of the company from 2000 to 2005, when it was called OneSteel.

Mr Every said he spent five years paying down Arrium's $1.2 billion debt and raising its value, only to see that debt come full circle a decade later.

He said cheap imported steel had hurt Arrium.

"I think we have to recognise there is cheap steel being imported," Mr Every said.

"So I think one fast tracking dumping action and giving ourselves a level playing field is the single most important thing that could be done."

But he said management was also to blame for Arrium's financial woes.

"The problem now is that the company has taken on board too much debt and it's not sustainable," he said.

"The company was always a difficult business, it's a cyclical business and in my opinion it's a business that can only be sustainable through the cycle with a fairly low level of debt.

"That acquisition [of iron ore mines] and others were all debt funded and I think that's what's led to the high level of debt, that has now as the cycle's changed and commodity prices collapsed, has left the company in an unsustainable position."

Mr Every said without government and financial intervention, it would be difficult to save the company given the current market conditions.

"There's a hell of a lot of debt there that needs to be serviced and I think what has to happen now is it has to be worked through in a careful way with respect to the employees to come up with a structure that is sustainable and internationally competitive," Mr Every said.

"Exactly what shape that takes I don't know."

Local steel procurement 'could breach trade obligations'

Industry Minister Christopher Pyne has backed calls from Labor to mandate the use of Australian steel on government infrastructure projects to help prop up the industry.

But South Australian senator Anne Ruston said she did not support legislating local steel procurement as a potential solution for Arrium.

Ms Ruston said while she believed governments could be more proactive in buying Australian products, mandating local procurement could breach international trade obligations.

"I think we need to be mindful of the fact that we are an exporting nation, we have a very small population, we're not going to get rich selling to ourselves, so we must be very careful that we don't put in jeopardy our trade arrangements overseas," Ms Ruston said.

In a statement released today, administrators Grant Thornton said they would work with the South Australian Government's Steel Taskforce in the search for a solution for Arrium.

"Our joint aim is to now swiftly bring together all key parties in a collective effort to save Whyalla and we have stepped up the flow of information between Arrium and the Steel Taskforce since our appointment to ensure this," the statement said.

The taskforce, led by businessman Bruce Carter, was set up late last year by the State Government when Arrium announced 250 job cuts at the Whyalla steelworks.

The administrators showed some optimism saying they "firmly believe that strong support and commitment from all parties involved will help ensure Whyalla's continued operations and deliver long-term value to creditors".

The first meeting of Arrium creditors is due on April 19.