The South East Asia Iron and Steel Institute (SEAISI) has announced that, according to preliminary data, apparent steel consumption in the ASEAN region reached 67 million mt in 2014, an increase of around six percent year on year, as a result of a significant increase in steel demand in Vietnam, the Philippines and Indonesia.
Vietnam's steel demand registered the highest growth rate in the region of around 20 percent year on year in 2014. It is estimated that Vietnam's steel demand could exceed 14 million mt in 2014. Domestic production recorded a strong double-digit growth in the given year. Imports also continued to increase significantly, by more than 2 million mt. Exports similarly registered a significant volume of 2 million mt.
Although the Philippines's steel consumption in volume is relatively small, compared to the other countries in the region, it has consistently been able to enjoy a high growth rate in steel demand in the past few years. It is estimated that the country's steel demand surged by 10 percent year on year in 2014. This resulted in total steel demand exceeding 7 million mt in 2014.
The SEASI said that the country which registered the third highest steel demand in the ASEAN region in 2014 was Indonesia, with its total steel demand estimated to have increased by over six percent year on year in 2014. Indonesian demand was well served by domestic production, which registered a robust growth rate of 30 percent year on year. Exports also recorded a strong growth rate. On the other hand, the volume of steel imports decreased compared to 2013.
Malaysia's steel demand continued its moderate growth rate of around three percent year on year, resulting in total steel demand staying above 10 million mt in 2014. However, domestic producers did not seem to benefit from the increase in steel demand. The total steel production volume in Malaysia remained relatively unchanged compared to 2013, while imports rose significantly, by double digits. Exports saw a strong growth of around 60 percent year on year.
According to preliminary data, Thailand's steel demand contracted by more than one percent in 2014. This was mainly due to the political problems in the country which have had a negative impact on the country's economic growth.
Singapore, the smallest steel consuming country in the region, experienced the highest decline in steel demand in 2014 (at nearly 10 percent year on year). Although the domestic production volume increased by some 25 percent following a sharp drop in production in 2013 due to upgrading works by the only producer in the country, the production of less than 600,000 mt in 2014 was still below its optimum production capacity. This was mainly due to the slowdown in steel demand as well as the influx of cheap imports of construction steel from China.