According to data released by the Southeast Asian Iron and Steel Association, it is expected that in 2023, steel demand in the six ASEAN countries (Vietnam, Indonesia, Thailand, the Philippines, Malaysia and Singapore) will increase by 3.4% year-on-year to 77.6 million tons. In 2022, steel demand in these six countries will only increase slightly by 0.3% year-on-year. The main drivers of steel demand growth in 2023 will come from the Philippines and Indonesia.
The Southeast Asian Iron and Steel Association predicts that in 2023, although the Philippine economy faces challenges such as high inflation and high interest rates, it will benefit from government-promoted infrastructure and power development projects. It is expected that the GDP will grow by 6%-7% year-on-year. Demand will rise 6% year-on-year to 10.8 million tonnes. Although most people in the industry believe that the steel demand in the Philippines has growth potential, the forecast data is too optimistic.
In 2023, Indonesia’s GDP is expected to grow by 5.3% year-on-year, and steel consumption is expected to increase by 5% year-on-year to 17.4 million tons. The Indonesian Iron and Steel Association’s forecast is more optimistic, predicting that steel consumption will increase by 7% year-on-year to 17.9 million tons. The country’s steel consumption is mainly supported by the construction industry. In the past three years, the steel consumption in the construction industry accounted for 76%-78%. This proportion is expected to rise when considering infrastructure construction projects in Indonesia, especially the construction of the new capital in Kalimantan. According to the Indonesian Iron and Steel Association, the project is estimated to require about 9 million tons of steel by 2029. But some analysts are cautiously optimistic that the situation will become clearer after the Indonesian general election.
In 2023, Malaysia’s GDP is expected to grow by 4.5% year-on-year, and steel demand is expected to increase by 4.1% year-on-year to 7.8 million tons.
In 2023, Thailand’s GDP is expected to increase by 2.7%-3.7% year-on-year, and steel demand is expected to increase by 3.7% year-on-year to 16.7 million tons, mainly driven by improved demand from the construction industry.
Vietnam is the country with the largest demand for steel products among the six ASEAN countries, and it is also the country with the slowest growth in demand. It is estimated that Vietnam’s GDP will increase by 6%-6.5% year-on-year in 2023, and steel demand will increase by 0.8% year-on-year to 22.4 million tons.
Singapore’s GDP is expected to grow by 0.5%-2.5% year-on-year, and steel demand is expected to remain flat at around 2.5 million tonnes.
Some analysts believe that the forecast data of the Southeast Asian Iron and Steel Association is relatively optimistic. The Philippines and Indonesia will become the driving countries for the growth of steel consumption in the region. These countries are seeking to attract more investment, which may also be one of the reasons for the relatively optimistic forecast results. .
Ruixiang Steel Group has always been an important partner of the six ASEAN countries. The steel products exported to the six ASEAN countries have exceeded 100,000 tons. Our group has been committed to providing high-quality and cost-effective steel products for our partners.