Steel demand in Southeast Asia is projected to grow by 3.7% to 76.5 million tons this year, according to the Southeast Asian Iron and Steel Institute (SEAISI). However, last year, demand in the ASEAN-6 countries dropped by 1.9% to 73.5 million tons, with production also falling by 2.1% to 49.4 million tons. Net steel imports decreased by 1.3% to 24.3 million tons.

Last year's decline might be attributed to lower external demand, high inflation, and tight financial markets, which slowed construction and depleted steel mill inventories. Despite setbacks in Malaysia, the Philippines, and Vietnam, steel demand grew in Singapore and Indonesia.

The region's steel demand was predicted to rebound in 2024, driven by infrastructure projects, tourism recovery, and private consumption. However, the region faces challenges like geopolitical conflicts, currency depreciation, and volatile commodity prices. To remain competitive, the ASEAN steel industry needs government support and advanced technology. Chinese steel exports to the region also surged by 37% in 2023, adding to the competitive pressure.