In the Asian market, consumption growth in ASEAN and India can bring opportunities to the steel industry. Hot rolled flat steel bar is one of main steel products in Glory Steel. Thanks to the demand for construction projects, in 2018, the ASEAN Economic Community’s steel performance consumption increased by 4.9% to 88 million tons, and production increased by 11%. The steel consumption of the six ASEAN countries showed a positive growth trend. However, it should be noted that in 2018, the growth rate of finished steel imports in most countries of ASEAN is slowing down. This is mainly due to the increase in domestic steel production in ASEAN countries to meet domestic demand and replace imports. In 2018, Vietnam’s steel import growth rate fell by 4.4% year-on-year, making it the only ASEAN country with a continuous decline in steel imports.
In 2018, ASEAN steel consumption increased by 5%. Steel exports increased by 33%, mainly to ASEAN, India, the United States and other places. Steel imports increased by 3%, the main imported steel is hot rolled flat steel bar, the main source of imports are Japan, China, South Korea and so on. Glory Steel work could offer hot rolled flat steel bar. In the long run, ASEAN’s steel production capacity is much higher than consumption. ASEAN local steel mainly produces long products, and hot rolled flat steel products mainly rely on imports, so the production of flat products of ASEAN has also increased in the past two years. The ASEAN steel industry is developing rapidly, steel production capacity, output and consumption will increase substantially, and export potential will be released. Investors in the region will increase their investment opportunities. Investors should pay attention to the actual demand situation in the ASEAN region, as well as the import situation of ASEAN, avoid the intensification of competition caused by excessive investment, and also pay attention to avoiding trade risks.
In other countries, steel demand is near saturation, the Indian market still has a large demand space. Comparing the current situation in India with the situation in China in 1996, the increase in disposable income and automobile demand in India will drive demand for sheet, hot rolled flat steel bar and other high value-added steel. Foreign investment, IT and e-commerce in the Indian steel sector will bring many market opportunities. There are many similarities between China and India, with huge populations, demand and growing purchasing power, which mean huge market potential. Both countries have the advantage of IT technology and can reconstruct and optimize the circulation network. India’s development will be faster than we think. By 2030, Indian crude steel production will reach 250 million tons. In the next two or three decades, the merger and reorganization of the Indian steel industry will accelerate, and high-quality steel products will increase. Through the use of IT technology, industry operations will gradually become transparent.
In 2018, India’s crude steel output surpassed Japan’s second place in the world. India’s steel output will reach 112.5 million tons in 2019, and steel production capacity will increase by 8% in 2019 compared to 2019. In terms of imports, Indian steel imports will increase by 5% in 2019, with major sources of imports being South Korea, Japan and China. India will be the new starting point for the next round of global steel industry development. With the development of the global economy and the iteration of the industry, the Middle East and Africa will also become a rising star in the development of the steel industry.