Steel Demand in ASEAN-6 in H1 of 2020 Shrinks by 16% YoY
The South East Asia Iron and Steel Institute announced that apparent steel demand in ASEAN-6 Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam registered a double digit decline of 15.7% YoY in the first half of 2020. However, production showed only a single digit decline of 4% YoY, to 20.7 million tonnes in the same period. SEAISI said “This could be the impact of covid-19 pandemic and partly to export in some countries. Export saw a significant increase of 1.3 million tonnes to 9.3 million tonnes in the first half of 2020. In the meantime, import dropped 13.6% YoY to 21.7 million tonnes in the same period.”
Flat steel demand saw a double digit decrease of 15% YoY to 17.3 million tonnes, a decline of more than 3 million tonnes region wide. Long steel demand contacted by 1.5 million tonnes to 17.3 million tonnes in the same period. Flat steel production dropped nearly a million tonnes to 5.5 million tonnes in the first half of 2020. Import dipped by 2.5 million tonnes to 16.5 million tonnes. Export reduced 6% YoY to 4.6 million tonnes.
Long steel demand declined 16.5% YoY to 15.7 million tonnes. Domestic production remained unchanged at 15.2 million tonnes in the first half of 2020. Import dropped 1 million tonnes to 5.2 million tonnes in the first half of 2020. Export at 4.7 million tonnes was an increase of more than 2 million tonnes in the same period of 2020.
Indonesia’s apparent steel demand declined by 18.5% YoY to 5.8 million tonnes as flat & long steel demand dropped by 20% YoY and 16.4% YoY respectively
Malaysia’s apparent steel demand dropped by 43% YoY to 2.7 million tonnes in the first half of 2020
Philippines apparent steel demand dipped by 900,000 tonnes to 4.1 million tonnes in the first six months of 2020
Singapore’s apparent steel demand declined slightly, at 2.5% YoY to 1.15 million tonnes in the first half of 2020. This was mainly the result from a double-digit decrease in flat steel demand to 355,016 tonnes.
Apparent steel demand in Thailand dropped 13.7% YoY to 8 million tonnes. Both flat and long steel demand registered double digit decrease rates of 14.3% YoY and 12.6% YoY respectively.
Apart from Singapore, Vietnam is one of the ASEAN-6 countries that experienced a single digit decreasing rate of steel demand, at 5% YoY. The total demand dropped around 600,000 tonnes to 11.2 million tonnes. Flat steel demand declined 7.8% YoY to 5.6 million tonnes. Long steel demand dipped slightly, by 1.9% YoY to 5.6 million tonnes.