ASEAN countries attitude to imported steel

Southeast Asia iron and steel association said although the ASEAN countries, including Indonesia,Malaysia, Philippines, Thailand, Singapore and Vietnam), have strong economic foundation, theapparent consumption of steel will exceed 80 million tons in 2018, but the iron and steelenterprises in the region in the future will continue to face fierce competition from imported steel,depressed steel prices and meager profits.Among the SAEAN countries, Vietnam steel apparent consumption last year is the highest onyear-on-year growth, up to 23.8%, followed by the Philippines (+10%), and Malaysia (+ 1.8%);Steel apparent consumption slipped of the other ASEAN countries, of which Singapore largestdecline over the previous year, reaching 9.4%, followed by Indonesia (-2%), and Thailand(-1.6%).Even so, ASEAN countries iron and steel enterprises will not be able to benefit from steel demandgrowth in the region, the average capacity utilization continues at around 50%, the main is causedby the fierce competition of cheap imported steel.Although since January 1, some boron steel products export tax rebates has been canceled, butthere are no signs of slowing down of China's steel exports to ASEAN countries.Data released by Southeast Asia iron and steel association in the first quarter of this year show thatChina's exports to ASEAN countries of finished steel 7.8 million tons, 63% year-on-year growth.ASEAN countries in 2014 amounted to 58.2 million tons of imported steel, China steel accountedfor 42%, and in 2013 the figure was 30%.ASEAN countries steel imported from other sources are mainly Japan, South Korea, Taiwan,China, Russia and India and other countries or regions.ASEAN countries combined steel output reached 27 million tons last year, up 6% from a yearearlier.Southeast Asia iron and steel association, fierce competition from cheap imports of steel productsin the short term will continue to exist, the ASEAN countries steel market will continue to face achallenge, so the future of ASEAN countries to prevent steel import growth will likely trademeasures taken by increased significantly.In 2014, according to data released by the association of southeast Asian steel, ASEAN countriessteel apparent consumption reached 66 million tons, 4.3% rise from 63 million tons of a yearearlier.Last year, in crude steel, SAEAN countries imported steel accounts for about 60% of the demandin the region.Therefore, in the annual meeting of the association of southeast Asian steel 2015 Manila, theassociation of south-east Asian nations steel executives to its hasn't been able to benefit from steeldemand growth in the region. Association of southeast Asian steel steel demand growth for theregion in the future outlook is still optimistic.Looking to the future, steel demand is expected to be a significant growth in Indonesia and thePhilippines, Vietnam after overcoming structural problems steel demand has stepped into thesustainable development path, this is mainly due to the size of its economy expands, and the abovethree countries combined steel consumption per capita is still only a third of the global average of225 kg.Thailand's political situation remained stable, so the country is expected to rebound in steel

consumption. Although Myanmar, Cambodia and Laos total steel demand is low, but in the nextthree years the three countries are expected to be significant growth of steel consumption.South-east Asian countries upstream steel iron and steel industry not only lack of facilities, andgive priority to making low-end ordinary steel, competition from other countries steel isparticularly fierce, especially for those high end seamless steel pipe and welded steel pipeproducts, forcing it to take more protection measures to deal with imported steel.