Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

The South-East Asian Iron and Steel Institute (SEAISI) recently provided an overview of steel projects in the ASEAN region and reported that projects involving investments from China are encountering some delays or have been postponed. 



Cambodia may have its own domestic steelmaking facility if China’s Baowu Steel relocates its 3.1mn mt facilities from Xinjiang Autonomous Region, China. Baowu previously stated it planned to move two blast furnaces to Cambodia. 



PT Krakatau Steel and South Korea’s Posco’s 3mn mt annual capacity Cilegon Steel venture could be commissioned by 2025. The new blast furnace, plate mill, sintering plant, and coke plant will double the steelmaker’s total annual capacity to 6mn mt. On the other hand, PT Gunung Raja Paksi Steel is commissioning a new 1.5mn mt annual capacity blast furnace for slab production in West Java in Q2 2021.


China’s Hebei Bishi Group’s planned construction of a 3mn mt annual capacity integrated steel mill in Kendal has been delayed to begin in 2021. The first phase was to be followed by an expansion that would double the plant’s capacity.


PT Dexin Steel recently commissioned a 3.5mn mt annual capacity blast furnace in Central Sulawesi. The first phase will focus on billets and wire manufacturing before expanding to slabs and bars by raising its capacity. Phases two and three expansions would add a capacity of 2.5mn mt by December 2022 with a further ramp-up to 14mn mt and eventually to 20mn mt in the long term.



WenAn Iron and Steel plant in Samalaju, Sarawak province will have an integrated steelmaking capacity to produce 10mn mt of long and flat products. The project’s planning is categorized as ongoing by the company, but construction was expected to commence in mid-2020. The project was primarily underwritten by Chinese investors. 


Malaysian Oriental Shield (MOS), took over the assets of Megasteel with plans to restart it in 2021. Megasteel has an annual capacity of 3mn mt of flat products while MSO is a longs products producer. MSO may invest in a blast furnace to add to the present capacities. After upgrades, the total annual production capacity is expected to reach 5.5mn mt with 4.5mn mt or 81.8pc for HRC and the remaining 1mn mt for bars and wire rods.



Kunming Iron and Steel plans to construct a 4mn mt integrated steel mill in Myanmar in two stages of 2mn mt each. The plant will produce HRC, bars, rods, and sections. Kunming Iron and Steel was acquired by China’s Baowu Steel in February 2021 and the project is being reviewed, according to SEAISI data.



Two China-backed steel projects slated to begin in the Philippines are also under review. 


China’s Panhua Group is assessing developing a 10mn mt integrated plant in Misamis Oriental province in three phases. The plant will produce steel slab, galvanized coil, and color-coated coil. China’s Baowu may unite with Panhua towards the installation of the steel mill. China’s HBIS Group and Philippine’s SteelAsia Manufacturing JV announced plans to install an 8mn mt long product capacity in Batangas in two phases by 2026. 


SteelAsia Manufacturing announced three plants for expansion including a new EAF capacity of 1.2mt mt in Tarlac to produce wire rods, a new plant in Cebu with an EAF capacity of 0.8mn mt of wire rod and rebar production, and a third 0.5mn mt EAF plant in Batangas to produce steel sections.



Hoa Phat plans to set up two blast furnaces in 2021 in addition to the 1mn mt each annual capacity blast furnaces No 1 and No 2. The additional No 3 and No 4 furnaces will also have an annual capacity of 1mn mt each and are under construction at the Dung Quat site but will produce flat steel.


Formosa Ha Tinh is operating a steel plant with an annual capacity of 7.5mn mt with 6mn mt for flats product and 1.5mn mt for longs. Initial plans announced include two expansions with each phase increasing the capacity by 7.5mn mt.


Vietnam’s Hoa Sen Group has discarded plans to continue its unfinished 6mn mt blast, which had an estimated investment of $10bn for completion. 

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