ASEAN-6’s scrap demand increased moderately, by 7% y-o-y to 28.6 million tonnes in 2018. The volume was somewhat lower than the semi-finished steel production in the region, at 34.3 million tonnes. This was because there was more use of iron products in the steelmaking process in 2018. Iron product demand increased significantly, almost doubled in volume of the demand in 2017.
Among the six countries in ASEAN, Vietnam’s scrap demand registered the highest volume of 9.4 million tonnes, an increase of 6.5% y-o-y in 2018. Domestic supply of scrap dropped 4.5% y-o-y to 4.4 million tonnes while import rose significantly, by 15% y-o-y to 5.07 million tonnes in 2018. Export volume dropped by more than half to 86,400 tonnes in 2018.
The second largest scrap demand ASEAN-6 countries was Indonesia, with total volume of 6.3 million tonnes, a double digit increase of 19% y-o-y. This is to serve growing production of semi-finished steel. Domestic supply for scrap in Indonesia rose 10.6% y-o-y to 3.87 million tonnes while import rose significantly, by 33.8% y-o-y to 2.5 million tonnes in 2018. Export, on the other hand, declined 4% y-o-y to 67,063 tonnes in the same year.
Thailand’s scrap demand was 7 million tonnes in 2018, a declined of 5.6% y-o-y. Both domestic supply and import declined 5.7% and 0.5%, respectively. Export, on the other hand, surged 16.6% y-o-y to 410,137 tonnes in the same year.
Malaysia’s demand for scrap picked up significantly, by 18.6% y-o-y to 3.5 million tonnes in 2018. Domestic supply increased more than 500,000 tonnes to 2.96 million tonnes in 2018. Import rose 17.7% y-o-y to 993,017 tonnes in the same year. Export nearly doubled in volume to 434,699 tonnes in 2018.
Philippines’ steel-making capacity was not big, with annual production capacity of 1.5 million tonnes. Total scrap demand increased 9.1% y-o-y to 1.65 million tonnes in 2018. Philippines is a net exporter of scrap and major destinations were ASEAN countries. Total export volume registered 500,000 tonnes in 2018. Domestic scrap supply increased 19.5% y-o-y to 2.15 million tonnes in the same year.
Singapore’s steel-making capacity was 750,000 tonnes and semi-finished steel production was only 618,185 tonnes in 2018. Scrap demand in the country, therefore, registered only 686,872 tonnes, an increase of 4.2% y-o-y. However, Singapore is also a net exporter for scrap, at 726,153 tonnes, a decline of 8% y-o-y in 2018. Total domestic scrap supply in the country registered 1.29 million tonnes, an increase of 5.2% y-o-y in 2018. Import dropped by nearly half to 126,306 tonnes in the same period.