STEEL NEWS

Southeast Asian steel demand is expected to grow by 3.7% in 2024

According to the prediction of the Southeast Asian Steel Institute (SEAISI), steel demand in Southeast Asia will increase by 3.7% this year, reaching 76.5 million tons. However, last year the demand of the six ASEAN countries decreased by 1.9% to 73.5 million tons, and production also decreased by 2.1% to 49.4 million tons. The net import of steel decreased by 1.3% to 24.3 million tons.

Last year's decline may have been due to weak external demand, high inflation, and rigid financial markets, leading to a slowdown in steel plant construction and depletion of inventory. Despite setbacks in Malaysia, the Philippines, and Vietnam, steel demand in Singapore and Indonesia is still growing.

It is expected that the steel demand in the region will recover in 2024 through infrastructure projects, tourism industry recovery, and private consumption recovery. However, the region faces challenges such as geopolitical conflicts, currency depreciation, and fluctuations in commodity prices. To maintain competitiveness, the ASEAN steel industry requires government support and advanced technology. China's steel exports to the region also increased by 37% in 2023, intensifying competitive pressure.