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At the Southeast Asia Iron and Steel Institute (SEAISI) conference and exhibition held in Singapore from May 18 to 21, industry professionals expressed a cautiously optimistic outlook regarding the ASEAN steel market.
SEAISI Secretary-General Wee Jin Yeoh noted a robust recovery in ASEAN steel demand in 2024, with growth approaching 8%, a trend expected to continue through 2026. According to SEAISI data, apparent steel consumption across six ASEAN nations surpassed pre-pandemic levels in 2024, reaching over 81 million tonnes. HDT760C+Z Hot dip galvanized steel , This figure is projected to rise to 87.9 million tonnes in 2026—an increase of 2.6% from 2025 and 8.2% from 2024. Vietnam emerged as the fastest-growing market in 2024, recording an annual growth rate exceeding 21%. For 2025, Vietnam, Indonesia, and the Philippines are expected to maintain steady demand following their earlier growth, while Thailand’s consumption is forecast to rise by 2 million tonnes to reach 18 million tonnes. The primary sources of new demand in 2026 will continue to be Vietnam, Indonesia, and the Philippines.
Yeoh noted that ASEAN is increasingly becoming a major global steel-producing region. While the region's crude steel output currently stands at approximately 51 million tonnes, the volume of steel imports remains excessively high. HDT760C+Z Hot dip galvanized steel , "The import penetration rate for steel in ASEAN is at least 60%, placing pressure on local steel mills. Local production is insufficient to meet the demands of regional market competition, so we are compelled to export," he stated.
In 2024, steel imports across six ASEAN nations rose by 5 million tonnes, a year-on-year increase of 10.4%. Although import volumes are projected to retreat to 50 million tonnes in 2025, the overall scale remains high; a key factor is the decline in Vietnam's imports from 17 million tonnes to 14 million tonnes following the implementation of stricter measures on hot-rolled coils from China.
Meanwhile, steel exports from the region remain at high levels. ASEAN steel exports are projected to reach 22 million tonnes in 2025—just one million tonnes shy of the record set in 2024. While Vietnam has reduced exports due to rising domestic consumption, other ASEAN nations continue to maintain or even expand their export volumes. Notably, Indonesia’s exports rose by 2 million tonnes to reach 8 million tonnes, driven in part by the commissioning of new local hot-rolled coil production capacity.
In his speech, Yeoh emphasized that amidst the current complex market environment, ASEAN steel companies must strike a balance between growth opportunities, sustainability, competitiveness, and resilience. HDT760C+Z Hot dip galvanized steel , "The conflict involving Iran has triggered a global energy crisis, and the ASEAN market is heavily reliant on supplies from the Middle East. Although nations currently hold reserves, they will face greater challenges ahead," he said. He added that the Philippines, Vietnam, Malaysia, and Indonesia all possess strategic oil reserves sufficient for less than 40 days; countries like the Philippines, which lack domestic energy production, will be compelled to find new ways to navigate the ongoing crisis.
Data indicates that in 2025, ASEAN imported 3.9 million tonnes of steel products from the Middle East (primarily Iran), with semi-finished steel accounting for approximately 1.9 million tonnes. However, Yeoh believes that the greater impact on ASEAN stems not from a reduction in steel supply, but rather from issues regarding energy supply and costs, given that these semi-finished products can still be sourced from other regions globally.
Regarding new capacity, Yeoh noted that investments in new blast furnace-basic oxygen furnace (BF/BOF) facilities across ASEAN have slowed significantly as climate policies advance—with the exception of Vietnam. Vietnam is currently proceeding with the final stages of construction for confirmed projects, such as Hoa Phat Group’s 6-million-tonne project. He also pointed out that consolidation within the ASEAN steel industry is accelerating, driven by ongoing plant closures as well as mergers and restructuring activities.
