SEAISI Update on Upcoming Steel Projects in ASEAN
The South East Asia Iron and Steel Institute in a recent brief has updated the status of under implementation steel projects in ASEAN. It said “Despite the COVID-19 pandemic turmoil, ASEAN region is expected to remain the focal point for steel project investments. The region is one of the fastest growing regions in the world with more emerging markets coming up. Economic developments in the region are expected to drive demand and there are still opportunities to cover demand and supply gaps for steel products. Government policies and incentives will continue to attract potential investment into the steel sector. Furthermore, the region’s less strict environment policy has somehow allowed flow of steel projects from China and from the rest of the world.”
Steelmaking capacities development
Vietnam - Construction for Hoa Phat Dung Quat 2 is expected to start in early 2022. The project is an integrated mill project with a capacity of 5.6 million tonnes of Hot Rolled Coils. The plant is located in the province of Quang Ngai, south of Da Nang city
Malaysia - Eastern Steel has plans to expand to 5 million tonnes in the future, from the current 0.7 million tonnes. Alliance Steel is exploring the possibility of expanding to 10 million tonnes from the existing 3.5 million tonnes today. WenAn Steel’s 10 million tonne steel mill project in Bintulu, East Malaysia is undergoing site preparation. The project is expected to be ready by 2024. Oriental Shield, previously known as Megasteel, is expected to start up in Q3 2021 and they are exploring the possibility of backward integrating into blast furnace operations in the future.
Indonesia - Dexin Steel, located in the Morowali Industrial Park, has set sights on reaching 20 million tonnes steel capacity in the future. The current capacity is 3.5 million tonnes, with an ongoing expansion to reach 6 million tonnes in 2022.