ASEAN’s scrap demand increased significantly, by 19% y-o-y to 22.8 million tonnes in 2017. The increase in scrap demand growth rate in 2017, compared to a single digit growth rate in 2016, was due mainly to more steelmaking production in the region. The region’s semi-finished steel production surged 27% y-o-y to 26 million tonnes in 2017.
Among the six countries in ASEAN, Vietnam’s scrap demand registered the highest volume of 8.8 million tonnes, an increase of 38% y-o-y in 2017. Domestic supply of scrap contributed around half of the demand and the volume nearly doubled in volume to 4.6 million tonnes in 2017. Almost half of the demand was imported and the volume increased 10% y-o-y to 4.4 million tonnes in the same year. Export of scrap in Vietnam registered 201,000 tonnes, which was a significant increase of 154% y-o-y compared to 2016.
The second highest scrap demand in the region was Indonesia, with total volume of 5.3 million tonnes, a slight decline of 2.2% y-o-y in 2017. Domestic supply dropped 10% y-o-y to 3.5 million tonnes in 2017 while import almost doubled in volume to 1.9 million tonnes in the same period. Scrap export from Indonesia was low, at 70,000 tonnes in 2017.
Thailand’s scrap demand was 3.5 million tonnes, a decline of 10% y-o-y in 2017 while import nearly doubled in volume to 1.7 million tonnes in the same period. Export dropped 10% y-o-y from 431,162 tonnes in 2016 to 387,862 tonnes in 2017.
Malaysia’s demand for scrap picked up significantly, by 37% y-o-y to 2.97 million tonnes in 2017. Domestic supply for scrap was quite sufficient in the country, at 2.4 million tonnes in 2017, an increase of 19% y-o-y. Import, however, rose sharply, to more than two-folds in volume to 843,969 tonnes in the same period. Export was not significant. However, the volume started to pick up significantly since 2016, when it registered 150,748 tonnes and the volume continued to increase to 273,389 tonnes in 2017.
Philippines’ scrap demand was not significant, at 1.5 million tonnes in 2017. The demand was fully supplied domestically. Philippines was the biggest net exporter of scrap in the region. However, the export volume dropped significantly, by 34% y-o-y to 295,000 tonnes in 2017.
Apart from Philippines, Singapore is also a net exporter for scrap, at 790,154 tonnes, a moderate decline of 4.6% y-o-y in 2017. Scrap demand in the country was 658,906 tonnes in 2017, an increase of 14% y-o-y. Singapore’s import of scrap was not significant since domestic supply for scrap is sufficient to serve domestic demand and to export. However, the import volume in 2017 registered an increase of more than four folds to 225,421 tonnes.