Posted on 15 Nov 2016
Steel consumption in southeast Asia’s ASEAN region rose strongly during the first half of the year, a rise that was met by double-digit increases in both production and imports, a conference in Bangkok was told Monday. With the exception of Singapore, the major trading countries of ASEAN saw strong growth in steel consumption during the first half of 2016, Tan Ah Yong, secretary general of the South East Asia Iron & Steel Institute, said at the steel forum in the Thai capital.
Apparent steel consumption in Vietnam registered the highest y-o-y growth of 37.2% to 11.39 million mt, followed by Philippines’ growth of 29.6%, said Tan. Thailand and Indonesia saw first half increases in steel demand exceed 10%. Singapore was the only country which registered a plunge in H1 steel demand [See table below ].
Overall steel consumption of the six ASEAN countries rose by 19.3% y-o-y during the first half of 2016 to 39.28 million mt. Tan said that the exceptionally strong on-year consumption growth recorded in first half was partly due to the low base for consumption in first half 2015. Growth was also driven by strong demand in Vietnam and the Philippines, and the recovery in steel demand in Indonesia and Thailand, as well as stronger than expected demand growth in Malaysia.
Overall production of finished steel grew by 21.3% to 16.51 million mt. This comprised 12.85 million mt of long products and 3.66 million mt of hot rolled flat products, growing by 22.9% and 16.2% respectively year-on-year. Imports rose by 13.1% to 26.81 million. Exports fell by 7.6% to 4.04 million mt.
China accounted for 53% of total imports of semis and finished steel into the region during the first half of 2016. Chinese steel exports "continue to flood the Asean market," said Tan. For the first nine months of this year, imports from China reached 28.36 million mt, up 20% y-o-y and compared to 31.87 million mt in the whole of 2015, said Tan.
"The industry in the region continues to face serious threat from the influx of steel exports from China and regional steel groupings are still trying to press for a long-term solution to the problem," he said.
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ASEAN-6 apparent steel consumption Source: SEAISI Unit: ‘000mt |
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|
|
H1 2016 (yoy change) |
H1 2015 |
2015 |
|
Indonesia |
6,422 (11.1%) |
5,779 |
11,375 |
|
Malaysia |
5,580 (17.7%) |
4,740 |
10,000 |
|
Philippines |
4,704 (29.6%) |
3,629 |
8,760 |
|
Singapore |
1,297 (-40.3%) |
2,173 |
4,016 |
|
Thailand |
9,880 (18.9%) |
8,309 |
16,554 |
|
Vietnam |
11,394 (37.2%) |
8,304 |
18,254 |
|
Total |
39,277 (19.3%) |
32,934 |
68,959 |
