Myanmar's steel industry and its steel trade

Posted on 13 March 2012
 

Source: SEAISI
The major industry players in Myanmar's iron and steel industry are the government sector, the private sector (industrial zones) and the Myanmar Economic Corporation (MEC). In the government sector, there are a total of 40,000 tonnes per year of sponge iron capacity, 30,000 tonnes per year of pig iron or ingot capacity and 30,000 tonnes per year of steel billet production capacity. There are approximately 100,000 tonnes per year of steel production capacity in the private sector (industrial zones). As for the Myanmar Economic Corporation (MEC), a quasi government body, it is the most dominant player of the iron and steel industry in Myanmar. The Corporation operates a total of five major steel mills with total capacity of 850,000 tonnes per year.

From SEAISI's estimates, Myanmar imported approximately 619,000 tonnes of finished steel in 2010. Most of the import comprised of steel for the construction sector. Data from January to October 2011 shows total import of 436,000 tonnes of finished steel, down by 21% when compared to the same period of 2010. Myanmar's import of billet, at 117,000 tonnes in the first ten months of 2011, doubled in volume when compared to the same period of 2010.

The most significant import item is steel bar. Myanmar imported around 179,000 tonnes of bar from January to October 2011, down by 22% y-o-y. Major sources of import were China, South Korea and Thailand. Import of section registered 64,000 tonnes in the first ten months of 2011, up by 12% y-o-y. Major sources of import were South Korea, China and Thailand. Import of wire rod was somewhat stable at 23,000 tonnes, the bulk of which was from China.

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Import volume of flat steel in Myanmar is not significant. Import of plate registered 11,000 tonnes between January and October 2011, a substantial decline of 63% y-o-y. The largest source of import was Thailand (74% of total import volume). Meanwhile, import of hot rolled coil and cold rolled coil registered 23,000 tonnes and 26,000 tonnes in the first ten months of 2011, up by 5% and 32%, respectively. Major source of import was South Korea. The import of flat product is mainly to serve the oil & gas industry, which is expected to grow further.

As for coated sheet, import of hot dipped galvanized sheet and color coated sheet for the period of January to October 2011 was 28,000 tonnes and 13,000 tonnes respectively, an increase of 15% and 22% y-o-y. Major sources of HDG import were India and Thailand. Meanwhile, major source of color coated sheet import was Taiwan. Import of the other types of coated sheet such as electro galvanized sheet and tinplate tin free product was between 1,000-2,000 tonnes only.

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Remark: Import data is compiled from export of steel from major countries to Myanmar, except Philippines and Vietnam. This is because there is no data available from Myanmar.


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