Steel consumption in 6 ASEAN countries estimated at 77.2 mn t in CY’21 – SEASI

Steel consumption in six ASEAN countries is estimated to be 77.2 million tonnes (mn t) in CY’21, similar to the level of 2017. Steel consumption, particularly in Indonesia, Philippines and Singapore is anticipated to be higher than pre-Covid levels.

Steel consumption in the first half of CY’21 was registered at 38 mn t, an increase of 14.1 % from 33.3 mn t in the same period last year. As the six ASEAN countries implemented strict lockdown measures in the third quarter, consumption is likely to remain stagnant in the second half of CY’21, according to the Southeast Asian Iron and Steel Institute (SEAISI).

SEAISI announced on 10 Jan that Covid-19 had struck six ASEAN countries hard in CY’21. Steel consumption in the six countries fell from 80.3 mn t in CY’19 to 71.8 mn t in CY’20 owing to the pandemic.

Besides, global shipping logistics disruption and global automobile semiconductor shortage led to restrictions on supply chain operations and export activities in each country.

The shortage of automobile semiconductors has hit the industry in Thailand and Indonesia where many production bases for Japanese automobile manufacturers are located.

SEAISI expects that the global automobile semiconductor shortage would ease and the economic growth rate of the six ASEAN countries will be 3-4% but Thailand, where the spread of Covid-19 was more severe, would only grow by 1%.

On the other hand, Singapore is expected to record a growth rate of 6-7% on account of rapid recovery of the manufacturing sector.

In CY’21, these three countries recorded growth in steel consumption by 56%, 24% and 6%, respectively. The growth rate of steel consumption in Thailand is expected to be 4.7%, followed by Malaysia at 3.2% and Vietnam at 2.4%.

Most of the ASEAN countries are seeking economic recovery through the resumption of tourism and investment in public infrastructure as the vaccination rate rises in ASEAN countries.

Thus, steel consumption in the six countries may change depending on Covid-19 control measures.

This article has been published as part of an article exchange agreement between SteelMint and SteelDaily.