Overview of Steel Consumption Pattern in SEAISI member countries and Japan
Posted on 02 August 2019
Overall apparent steel consumption in the ten countries increased slightly, by 1.1% y-o-y to 224.6 million tonnes in 2018.
Australia’s apparent steel consumption was unchanged, at 4.76 million tonnes in 2018. Domestic production increased slightly, by 1.6% y-o-y ,while import and export declined.
Japan’s overall steel demand continued to increase 1.7% y-o-y to 66.3 million tonnes in 2018. Domestic production stagnated at 92.4 million tonnes. However, import and export dropped moderately, by 4-5% y-o-y in the same year.
Korea registered a decline in steel demand of around 3 million tonnes to 53.6 million tonnes in 2018. Production remained unchanged at 69.6 million tonnes. Import dropped significantly, by 4 million tonnes to 12.4 million tonnes in 2018. Export declined moderately, by 3.7% y-o-y to 28.4 million tonnes in the same period.
Taiwan’s steel demand surged 2.4% y-o-y to nearly 20 million tonnes in 2018. Steel production increased 7% y-o-y or around 2 million tonnes to 28.5 million tonnes in the same period. However, import dropped dramatically, by a million tonnes to 2.9 million tonnes in 2018. Steel export rose 4% y-o-y to 11.5 million tonnes in the same period.
ASEAN-6’s steel demand picked up moderately, by 4.9% y-o-y to 80.02 million tonnes in 2018, mainly due to the on-going mega projects in many countries, especially Indonesia and Philippines.
Steel production registered a double-digit growth rate of 15.3% y-o-y to 42.8 million tonnes and import increased slightly, by 2.8% y-o-y to 50.6 million tonnes in 2018. ASEAN is not a major steel exporter; however, export volume surged significantly since 2017 and continued to expand at 33% y-o-y to 13.4 million tonnes in the same year.
Indonesia’s steel demand registered the highest growth rate among the six countries in ASEAN, at 11% y-o-y to 15.08 million tonnes in 2018. Philippines, which has seen its steel demand expanding rapidly since 2010, continued to register a strong growth rate in 2018. Total steel demand in 2018 grew 9.2% y-o-y to 10.73 million tonnes, the second highest growth rate in the region.
Singapore’s steel demand picked up 3.7% y-o-y to 2.89 million tonnes in 2018. However, the volume was still low when compared to the level before 2016, which was around 4 million tonnes a year. Malaysia maintained its moderate growth rate of 3.5 %y-o-y for steel demand to 9.77 million tonnes in the same year.
Vietnam’s steel demand started to slow down in 2017, declining 3% y-o-y. However, steel demand picked up moderately, at 3% y-o-y in 2018, resulting in steel demand in Vietnam going back to the 2016 level of 22.3 million tonnes.
Among the six countries in the region, Indonesia, Philippines and Vietnam registered double-digit growth rates in steel production in 2018. Meanwhile, steel production volume in Thailand and Singapore both declined while Malaysia’s steel output stagnated in 2018.
Total steel export in the ASEAN -6 region showed a strong growth of 33% y-o-y in 2018. This was owing to the significant growth in steel export volume from Indonesia (doubled in volume from 2017) and Vietnam (up 41% y-o-y).