Flat steel consumption posted steady growth in ASEAN countries in 2019 with all major indicators of production, imports and exports growing. At the same time, demand for longs in the market was lower and regional mills were redirecting more volumes to exports, according to Yeoh Wee Jin, secretary general of the Southeast Asia Iron and Steel Institute (SEAISI). Total steel consumption in the region increased by 1.2 percent year to 81 million mt in 2019.
Flat steel consumption in the ASEAN-6 countries (Vietnam, Indonesia, Thailand, the Philippines, Malaysia and Singapore) added 3.2 percent year on year to 41.823 million mt in 2019. Imports increased by 3.7 percent or by around 1.4 million mt year on year to 38.733 million mt. China has remained the main seller with a 33 percent share in the import flat steel market in Southeast Asia, while Japan and S. Korea accounted for 24 percent and 14 percent respectively.
In the longs segment, demand in ASEAN fell by 0.8 percent year on year to 39.181 million mt in 2019, leading to a drop of 5.4 percent in long steel imports. But at the same time, production of longs improved by 6.2 percent year on year to 32.355 million mt. The decline in demand was mainly due to a slowdown in construction in major countries, while higher export volumes supported production. ASEAN producers exported 5.673 million mt of longs in 2019, up by 35.2 percent from 2018. A major share of sales (41 percent) was within the region, but 12 percent of all exports went to Myanmar, with 18 percent going to China.
Vietnam remained the largest exporter in the region. Indonesia was active in both slabs and flats and in longs and billet exports. Malaysian exports of wire rod increased sharply to 1.3 million mt, being not much above 100,000 mt in 2018.
