The new expansion plans of steel mills in the Asean (Association of Southeast Asian Nations) region through the blast furnace (BF)-route are expected add 90.8 million tonnes (mnt) of crude steel capacity. Capacity through the electric arc furnace (EAF) method will add around 2.2 mnt. Post-expansion , the BF-converter steel production capacity of the six ASEAN countries will increase to 162.6 mnt, while the EAF capacity will remain at 2.2 mnt.
It may be mentioned, steel production from the six ASEAN countries — Indonesia, Thailand, Malaysia, Vietnam, the Philippines and Singapore — was at 71.8 mnt in CY2020.
The ASEAN steel industry experienced overcapacity in both long and flat steel products after increase in capacity. The long steel production capacity was around 68.7 mnt, while actual production was 32.5 mnt. Long steel consumption was at 34.8 mnt in CY2020.
The crude steel production of six ASEAN countries was recorded at 34 mnt in CY2011, among which EAFs accounted for 95% of total production capacity (32 mnt).
In CY2020, crude steel production capacity of ASEAN countries rose to 72 mnt. However, EAF’s share in total production dropped to 67%, and that of the blast furnace route steel stood at 30%.
Outlook
However, it is anticipated that the six ASEAN countries’ crude steel production capacity will reach 140 mnt by 2026, in which EAF’s share would be 51 mnt (36%) and converter steel (BF-route) will be 80 mnt (57% share).
The Southeast Asia Iron and Steel Association predicts that due to the increase in the production capacity of the blast furnace-converter process, it is expected that by 2026, the carbon emissions in the region will triple from 2020.
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