China investment will increase Southeast Asia steel production capacity by 50 million
TanahYong, outgoing secretary-general of the Southeast Asia Iron and Steel Association (SEAISI), said China's investment plans for large-scale steel projects in Southeast Asia had increased significantly in the past two to three years, especially in Indonesia, Malaysia and the Philippines.
Tan said in a farewell message to SEAISI members, "China's investment in steel in ASEAN has been for some time, but before that it was mainly limited to smaller steel projects." "Looking forward to the future, it will be an exciting and challenging time for ASEAN's steel industry," it said in a monthly ASEAN Journal on Monday. Tan, who has been Secretary General of the organization since 2007, will step down this month, but the exact date has not yet been announced.
Some large-scale steel projects invested by China have an annual production capacity of between 3 million and 10 million tons. Steel demand in Southeast Asia is expected to grow 5.6% next year, supported by infrastructure projects, higher than the 3.1% growth forecast this year, according to the World Steel Association. By contrast, China's steel demand growth is expected to slow to 1% next year, lower than the 7.8% expected this year. However, Tan said trade disputes between China and the United States, uncertainty surrounding brexit and the expected slowdown in global economic growth could limit the growth of steel consumption in Southeast Asia.