Steel demand in Singapore decreased visibly in 2019, which led to a sharp fall in imports, according to Eugene Ng, strategy and business development head at NatSteel Holdings during the 2020 SEAISI e-conference. Nevertheless, Turkish sellers managed to increase their share in the Singapore market in 2019. Though consumption in Singapore was hit hard in the first half this year due to the spread of Covid-19 and construction halts, the government is taking measures to offset the impact and demand is going to pick up from the third quarter, Mr. Ng said.
Total steel consumption in the country totaled 2.319 million mt in 2019, down 19.8 percent compared to 2018, according to the Nat Holdings official. As a result, imports dropped by 23 percent to 1.773 million mt. Bar and wire rod imports accounted for 68 percent of total shipments as construction is the main consuming sector. Turkey managed to increase its share in the import market in Singapore from 11 percent in 2018 to 20 percent in 2020, while China’s share declined from 35 percent to 27 percent. Lower opportunities in the export market pushed Turkish producers to increase shipments to Singapore, while “the total value remained almost the same,” Mr. Ng said.
From April this year, construction steel demand has been affected much by the spread of Covid-19, but “the situation has been contained and stabilized at the moment,” according to Eugene Ng. The government of Singapore has rolled out budget packages worth a total of $100 billion to support the economy. As a result, construction and shipyards are in the midst of reopening with construction projects delayed but not canceled, he indicated.