ASEAN Steel Sector Boom Likely to Boost Ferrous Scrap Demand

Posted on 26 September 2017

Source: Scrap Monster

The participants at SteelMint’s 2017 Steel Scrap & Raw Materials Conference Asia have predicted that steel production and consumption by the ASEAN region is likely to remain robust in the coming years.

The installation of new capacity in Vietnam has led to sudden surge in production, noted Nghiem Xuan Da, chairman, Vietnam Steel Corporation. The country’s billet production more than doubled in 2016. The country’s steel output totaled 7.8 million metric tons during the year. Out of this, 4.7 million metric tons were produced by EAFs, 2.3 million metric tons were produced by BOFs and the remaining 0.8 million metric tons were produced in foundries and induction furnaces. The country’s steelmaking furnaces reported scrap consumption of around 4 million metric tons during the year, Da noted.

According to Da, Vietnam’s crude steel output is predicted to grow by over 28% year-on-year and is likely to cross 10 million metric tons during the current year. Vietnam will continue to depend on imported ferrous scrap raw material for making steel. Japan and Hong Kong are likely to remain as the top scrap suppliers, followed by China. The country’s crude steel output is predicted to touch 20 million metric tons by 2020. The ferrous scrap imports too are likely to witness corresponding growth during this period.

Meantime, trade statistics released by the Vietnam’s Ministry of Finance indicates that the country’s ferrous scrap imports hit new high in August. The country’s imports totaled 483,000 tons during the month, higher by over 40% from August 2016 and by nearly 45% when matched with July this year. The imports of ferrous scrap by the country are up by almost one-fifth till date this year. Vietnam has imported 2.883 million tons of scrap during the initial eight months of 2017.

Rajiv Mangal, president and CEO, Tata Steel Thailand PLC noted that Thailand’s steel sector is likely to report muted growth in the near future. However, the ferrous scrap demand is expected to sustain the current levels, mainly on account of the country not having any integrated mill complexes.

The country’s steel production and consumption may witness tremendous growth upon implementation of the proposed massive infrastructure development outlined in the country’s five-year plan. Thailand will continue to remain as a net importer of ferrous scrap, mainly due to the limited domestic scrap availability in Thailand, Mangal said.

SteelMint’s 2017 Steel Scrap & Raw Materials Conference Asia was held September 11-12 in Bangkok. 

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