Preliminary figures compiled by the South East Asia Iron and Steel Institute (SEAISI) reveal that apparent steel consumption in ASEAN (Association of Southeast Asian Nations) countries picked up significantly in the second half of 2009. Nevertheless, the increase was not sufficient to offset the sharp drop in consumption in the first half of the year. As a result, ASEAN apparent steel consumption for the whole year of 2009 is estimated to have declined by eight percent year on year to 42.32 million metric tons.
Production was somewhat stable at 24.4 million metric tons. However, import and export volumes dropped significantly. Total imports of steel products into the region declined from 30 million metric tons in 2008 to 19.7 million metric tons in 2009, down by 35 percent. Exports dipped by more than half to nearly 4 million metric tons.
Among the six countries in the region, Vietnam is the only one that saw an increase in steel demand. In fact, apparent steel consumption in the country grew by more than 30 percent in 2009. On the other hand, Indonesia encountered the highest negative growth rate, of 27 percent, followed by Singapore and Thailand with declines of 23 percent and 20 percent respectively. Malaysia and Philippines experienced single digit declines in steel consumption, of nine percent and three percent respectively.
Demand for long products seemed to pick up fast at 11.8 million metric tons in the second quarter of 2009, slightly higher than the pre-crisis level in the first quarter of 2008. Domestic long product producers benefited from the demand growth, with a significant improvement in domestic production of 45 percent quarter on quarter to 9.7 million metric tons in the second quarter of 2009. Imports and exports increased to the same level as recorded in the first half of 2008, to 3.4 million metric tons and 1.25 million metric tons respectively.
Total long product consumption in 2009, however, declined by four percent to 20.1 million metric tons. Production declined slightly to 16.4 million metric tons. Imports dropped moderately to 5.9 million metric tons. On the other hand, exports registered an increase of nine percent year on year to 2.2 million metric tons.
Meanwhile, flat product consumption in the second half of 2009 was significantly lower than the pre-crisis level in the first half of 2008. Total consumption of 13.3 million metric tons indicated a decline of 15 percent when compared to the demand in the first half of 2008. Production dropped markedly from five million metric tons in the first half of 2008 to 4.3 million metric tons in the second half of 2009. Imports registered at 10.7 million metric tons, a decline from 13 million metric tons in the first half of 2008. Exports at 1.7 million metric tons constituted a significant decline from the 4.4 million metric tons recorded in the first half of 2008.
Total flat steel consumption amounted to 22.3 million metric tons in 2009, a decrease of 11 percent year on year. Production remained relatively stable at eight million metric tons. However, imports and exports showed a significant decline of 27 percent and 54 percent to 17.5 million metric tons and 3.3 million metric tons respectively.