Update on steel industry situation and steel trade in Myanmar

Posted on 04 July 2013
 

Source: SEAISI
According to the Myanmar Iron and Steel Association (MISA), Myanmar’s current per capita steel consumption is only in the region of 7kg-9kg, the lowest among ASEAN countries. However, with the opening up of the economy and the increased economic activities, Myanmar’s steel consumption is set to rise.

Myanmar is currently dependent on imports of steel products to meet its domestic demand. The government is encouraging foreign investment in the steel sector, in particular joint ventures. To ensure adequate power supply, the Mynamar Electric Power Enterprise (MEPE) is implementing various electric power generation expansion projects and expects to create an additional 23,830 MW electricity generation capacity by 2030 which will be sufficient to meet the power demand in the country.

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Myanmar’s import of welded pipe registered around 410,000 tonnes in 2012, which was the highest volume of the finished steel import in the country. Around 60% of the import was from China, followed by imports from India, Indonesia and Malaysia.

Myanmar’s import of bar rose significantly in 2012. Import doubled in volume to almost 400,000 tonnes compared to 2011. Almost 80% of the bar import was from China, followed by imports from South Korea and Thailand.

Import of section increased moderatly by 2% to 105,000 tonnes in 2012. Most of the import was from China, followed by the import from South Korea.

Import of flat steel products was not significant except for coated steel for construction and welded pipe. Import of hot dipped galvanized sheet (HDG) rose by 16% y-o-y to 105,000 tonnes in 2012. The major sources of import were China, India and Thailand. Import of color coated sheet in 2012, at 104,000 tonnes, was an increase of 78% y-o-y when compared to 2011.

Although the import of seamless pipe in Myanmar was not significant, the volume showed a significant increase by more than four folds to 54,000 tonnes in 2012.

China is the major source of steel import for Myanmar and its share of total import has risen from 26% in 2000 to 69% in 2012. Share of import from India rose from 4% in 2000 to 10% in 2012. Myanmar’s steel import from Korea, on the other hand, dropped from the share of 23% in 2000 to 6% in 2012. As for ASEAN, the region used to be the major source of steel imports for Myanmar with total volume of 110,000 tonnes in 2000 or 37% of total import. While the volume has increased to 167,000 tonnes in 2012, the region’s share of total import has dropped to 12%.

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Source: compiled by SEAISI from various sources

Remark: Steel import of Myanmar compiled from steel export from major trading countries, except Vietnam and Philippines



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