Posted on 02 Jul 2024
The Malaysian Iron and Steel Industry Federation (MISIF) foresees positive growth for Malaysia's apparent steel consumption (ASC) this year, underpinned by government infrastructure projects.
"We see positive growth in ASC to around 8.3 million tonnes this year. If all government infrastructure projects kick in, the demand could surge past 9mt. Then we are moving closer to our previous peak," association president Lim Hong Thye says at a press conference in Kuala Lumpur attended by Kallanish.
According to Lim, the outlook for flat products should be bright this year because of earlier investment in the semiconductor sector in Malaysia.
As for long products, which are mainly for construction, he notes that demand depends on government spending to spur the economy through infrastructure projects including Light Rail Transit project in Penang and mass rapid transit (MRT) 3 project.
According to MISIF's 15th report on the status and outlook of the Malaysian Iron and Steel Industry 2024/2025, which was unveiled on Monday, Malaysia's ASC continued its recovery in 2023. The country's ASC increased for the third consecutive year in 2023 by 4.5% to 7.9mt from 7.2mt in 2022. The growth is matched by improved finished steel production and higher imports.
Despite the growth, Lim notes that the ASC level was still way below pre-pandemic levels and the peak of 10.3mt in 2016.
Source:Kallanish
