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Steel News July 02, 2020 08:10:10 PM

ASEAN Steel Consumption to Witness Modest Decline in 2020

Paul Ploumis
ScrapMonster Author
The exports of steel products out of the region totalled 4.8 million tonnes in the initial four-month period of the current year.
ASEAN Steel Consumption to Witness Modest Decline in 2020

SEATTLE (Scrap Monster):  The South East Asia Iron & Steel Institute (SEAISI) foresees bright prospects for steel industry in the ASEAN region during the post-pandemic era. The industry has weathered several crisis situations in the past as well, it noted.

Speaking at the 2020 SEAISI e-Conference held on June 30, Yeoh Wee Jin, secretary general, SEAISI said that the apparent steel consumption in the region is likely to post year-on-year decline by 2.1%, falling from 81 million tonnes in 2019 to 79.3 million tonnes this year. However, it expects regional consumption to stage strong rebound to 83.2 million tonnes in 2021.

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The exports of steel products out of the region totalled 4.8 million tonnes in the initial four-month period of the current year. Long steel products dominated the exports with 31% share, followed by flat products with 29%. The largest export destination for steel exports from the ASEAN region was China. The country received nearly one-fourth of the total exports out of the region.

The economies of the 6 countries in the region as well as the steel consuming sectors were seriously affected by various lockdowns and restrictions imposed by Covid-19 crisis. The countries reported significantly slower GDP growth with some countries even recording negative growth. However, the countries are expected to see V-shaped recoveries in economic growth and steel consumption.