Posted on 28 Mar 2024
Eastern Steel, a joint venture between Malaysian steelmaker Hiap Teck Venture and Chinese steel producer Beijing Jianlong Group, may slow down its expansion plan, which is targeting 5 million tonnes/year of steel capacity.
An Eastern Steel representative said on the sidelines of Kallanish Asia Steel Markets 2024 in Ho Chi Minh City on Wednesday that the firm is currently targeting to achieve 3.5-5m t/y of steel production in three years’ time, subject to market conditions. "We have almost completed 70% of the expansion plan but, due to the current downturn, we may try to slow down our expansion plan," he noted.
Eastern Steel's plant can currently produce up to 2.7m t/y. Its monthly capacity is some 200,000t, mainly for billet and slab, with 70% of production exported, mainly to Türkiye, he added.
He noted that most Chinese steel players are making losses due to oversupply and weak demand amid geopolitical issues. However, Eastern Steel is able to maintain its profitability because the firm is sourcing cheaper iron ore in Malaysia, he observed.
He foresees the market stabilising in the next six months, underpinned by Chinese government stimulus measures.
Source:Kallanish
