Yeoh Wee Jin, Secretary General of the Southeast Asian Iron and Steel Association, said at a meeting held in Kuala Lumpur, Malaysia on the 14th that by 2030, the steel production capacity in Southeast Asia will expand to 164.8 million tons, and the future steel production capacity is expected to increase by 90.8 million tons, of which the electric arc furnace production capacity will be 2.2 million tons. Ton.
Yeoh Wee Jin explained that the reason is that the production capacity in Indonesia, Vietnam and Malaysia will expand rapidly. For example, in Malaysia, the current steel demand is about 10 million tons, but the production capacity will be expanded to 46 million tons from the current 16 million tons. “Expanding capacity is a hypothetical strategy for exporting to China, but as demand in China’s property market cools, where will these steels go?”. Yeoh Wee Jin expressed concern about future weak demand and overcapacity during the meeting.
Yeoh Wee Ji pointed out that the ASEAN steel industry faces the risk of high inflation and price volatility, therefore, overcapacity will lead to industrial consolidation in the region.
