ASEAN’s Steel Trade Dynamics in first Half of 2019

Indonesia’s finished steel import increased moderately, by 4% y-o-y to nearly 4 MnT in the first half of 2019. However, import of long steel declined to below one MnT in the same period. Flat steel import, on the other hand, continued to register a positive growth rate of 7% y-o-y. This was a result of a significant jump in the import of hot rolled products and cold rolled coil.

Finished steel export from Indonesia continued to increase at a significant rate, at 42% y-o-y to 1.6 MnT in the first half of 2019. This was mainly due to the robust increase in the export of flat steel which nearly doubled in volume to 1.5 MnT. Meanwhile, export of long steel declined slightly.

 Malaysia’s finished steel import in the first six months of 2019 declined by nearly 10% y-o-y to 3.3 MnT. The bulk of import was for flat steel, but the volume declined slightly to 2.4 MnT while import of long steel increased by a double digit of 17% y-o-y.

Export, on other hand, increased robustly, by 55% y-o-y, to 897,601 tonnes. This was due to a huge expansion in long steel export, which increased by three folds compared to the same period of 2018. Export of bar doubled in volume while export of wire rod increased by more than five folds.

 Philippines’ finished steel import was somewhat stable, with a slight increase of 2% y-o-y to 2.7 MnT from January to June 2019. There is no export recorded in the same period. Import of long steel declined 7% y-o-y while import of flat steel increased 9% y-o-y to 1.7 MnT during the same period of 2019.

Singapore’s finished steel import decreased 8% y-o-y to 3.7 MnT in the first half of 2019. Both long steel and flat steel registered negative growth rates. Long steel import dropped 11% y-o-y to 2.3 MnT and flat steel shrank 3% y-o-y to 1.4 MnT during the same period of 2019.

Finished steel import in Thailand expanded moderately, by 4.5% y-o-y to 6 MnT in the first half of 2019. Both flat and long steel importcontinued to grow at 4-5% y-o-y. Import of hot rolled plate and coated sheet registered double digit growth rates from January to June 2019. This was partly due to the substitution for the slowdown in domestic supply.

Finished steel export from Thailand, on the other hand, declined 11.3% y-o-y to 695,188 tonnes in the first half of 2019. Export of long steel was stable, with a marginal growth rate of 1% y-o-y. On the other hand, export of flat steel declined 26% y-o-y in the same period of 2019.

Vietnam’s finished steel import increased robustly, by 21% y-o-y, to more than 7 MnT in the first half of 2019. The bulk of import in Vietnam was the import of flat steel with the volume registering a double digit growth rate of 17-18% y-o-y in the first half of 2019. Import of long steel rose significantly, by nearly 50% y-o-y in the same period.

Export from Vietnam continued to increase, but at a more moderate growth rate of 8% y-o-y in the first half of 2019. Export of long steel surged around 300,000 tonnes to 1.1 MnT in the same period. Meanwhile, export of flat steel slowed down by 2.5% y-o-y to 2.3 MnT.