The South East Asia Iron and Steel Institute (SEAISI) has stated that steel demand in the ASEAN-6 countries in 2023 is projected to increase by 3.4 percent year on year to 77.6 million mt, after rising by 0.3 percent in 2022.
The major drivers of the growth in steel demand in the region will be Indonesia and the Philippines. Steel consumption in Indonesia will be supported by the construction sector, which will revive with infrastructure projects. Regarding the Philippines, the government’s plans to boost infrastructure and power development projects are expected to support the steel industry, despite the challenging economic environment, including high inflation and interest rates.
The steel demand and gross domestic product (GDP) forecasts for ASEAN-6 countries in 2023 can be seen in the table below.
|
Countries |
Steel demand |
Demand growth (%) |
GDP growth (%) |
|
Vietnam |
22.4 |
0.8 |
6-6.5 |
|
Indonesia |
17.4 |
5.0 |
5.3 |
|
Thailand |
16.7 |
3.7 |
2.7-3.7 |
|
Philippines |
10.8 |
6.0 |
6-7 |
|
Malaysia |
7.8 |
4.1 |
4.5 |
|
Singapore |
2.5 |
0 |
0.5-2.5 |