Southeast Asian steel production is expected to continue to grow, and carbon emissions are a major concern

At the SEAISI meeting held on May 13, 2024, Yeoh Wee Jin, Secretary General of the Southeast Asian Steel Association, analyzed in detail the current situation and future trends of the steel market in the region. He pointed out that despite the increasing global demand for decarbonization, it is expected that the blast furnace (BF BOF) A1008 DS Type B steel steelmaking method in Southeast Asia will still dominate and drive significant growth in steel production. This trend will inevitably lead to a significant increase in carbon emissions, becoming a focus of attention in the industry and society.

According to Yeoh Wee Jin's forecast, by 2030, the BF BOF production capacity in Southeast Asia will reach 92 million tons, accounting for nearly 60% of crude steel production capacity. The growth of this number not only reflects the development of the steel industry in the region, but also highlights the severity of carbon emissions in the steel industry.

During the meeting, representatives from SMS Group, Danieli, and Pritt Metallurgical Technology stated that due to the tight supply of renewable energy and natural gas, blast furnaces will continue to play an important role for at least fifty years. This means that the carbon emissions problem in the steel industry will still be difficult to effectively solve in the future.

In addition, the meeting also discussed the issue of overcapacity in steel production in Southeast Asia. Although steel demand in the ASEAN region is expected to continue to grow in the coming years, the risk of overcapacity still exists due to the continuous expansion of steel productivity and related industries in countries such as Indonesia, Malaysia, and Vietnam.

According to statistics from the Southeast A1008 DS Type B steel Asian Steel Association, the crude steel production capacity in the region was 78.1 million tons in 2021, and is expected to increase to 182.5 million tons by 2030. Among them, the newly added production capacity mainly comes from large enterprises such as Vietnam Formosa Plastics Hejing Steel Company, Indonesia Dexin Steel Company, and Malaysia Oriental Steel Company.

However, as steel production continues to grow, how to reduce carbon emissions and achieve green production has become a major challenge for the steel industry in Southeast Asia. Industry experts say that increasing export volume is an effective way to alleviate overcapacity, but due to the carbon border adjustment mechanism in Europe and other regions, Southeast Asian steel exports face many challenges.

Currently, many steel manufacturers are actively investing in green technologies to reduce carbon emissions in the production process. However, the development of these technologies is still in its early stages and their costs are high, making it difficult to promote them in the market.

Overall, the sustained growth of steel A1008 DS Type B steel production in Southeast Asia will provide strong support for the region's economic development, but it also brings about environmental issues such as carbon emissions.