Myanmar's Steel Demand Increases Amid Import Restrictions
[tintuc]
The demand for construction steel in Myanmar is slowly increasing. This matches the public and private construction activities. According to a recent conference by the Southeast Asian Iron and Steel Institute in Vietnam, the limited domestic steel production and reduced imports have affected steel consumption.
Public Infrastructure Projects
Many public infrastructure projects, including roads and bridges, are being developed. The Ministry of Construction and the Ministry of Electricity are actively buying steel, especially rebar, for these projects. Most stockholders are eager to bid for these ministries. Import licenses for such public projects are easily granted by the Ministry of Commerce.Private Sector Construction
The local private construction sector recovered in 2022 and 2023. Big real estate developers are most active in Yangon’s private housing sector, especially with the fast urbanization. Kay Thi Lwin, President of the Myanmar Iron and Steel Association, said that foreign investment brings in foreign currency through exports and capital inflows, and domestic banks are doing well.Challenges Facing Myanmar
Despite these positive trends, Myanmar faces several major challenges, Kay noted. These include:
Steel import restrictions and licensing issues: These have been in place since 2021.Currency depreciation: The Myanmar kyat has devalued against the US dollar.Power shortages and high fuel costs: These increase operational costs.Labor shortages: This is due to emigration.Steel Consumption and Imports
Myanmar's steel consumption is estimated at around 1.2 million tons in 2023, with about 650,000 tons being imported. This is a decline from previous years, following political instability in 2021 which led to a drop in imports. The government maintains steel import policies with an import quota estimated at 900,000 tons. The Myanmar government plans to approve $16 billion in imports for the fiscal year 2024.Main Steel Exporters to Myanmar
China: Accounts for 50% of the total import market.Malaysia: Primarily supplies long products and holds a 20% market share.Thailand and Vietnam: Both mainly provide flat products, with market shares of 20% and 10% respectively.Domestic Steel Production
The reduction in imports has been partially offset by domestic production of rebar. Small induction furnaces in Myaung Takar, north of Yangon, and industrial zones in Mandalay produce approximately 550,000 tons of rebar, angles, and channels annually. Steel imports peaked at around 2.2 million tons in 2020.
Kay Thi Lwin identified three active steel plants within the country. The Myingyan and Pin Pet steel plants are planning to resume production in 2024. Additionally, there are two operational color coating facilities in the country.
The demand for construction steel in Myanmar is slowly increasing. This matches the public and private construction activities. According to a recent conference by the Southeast Asian Iron and Steel Institute in Vietnam, the limited domestic steel production and reduced imports have affected steel consumption.
Public Infrastructure Projects
Many public infrastructure projects, including roads and bridges, are being developed. The Ministry of Construction and the Ministry of Electricity are actively buying steel, especially rebar, for these projects. Most stockholders are eager to bid for these ministries. Import licenses for such public projects are easily granted by the Ministry of Commerce.
Private Sector Construction
The local private construction sector recovered in 2022 and 2023. Big real estate developers are most active in Yangon’s private housing sector, especially with the fast urbanization. Kay Thi Lwin, President of the Myanmar Iron and Steel Association, said that foreign investment brings in foreign currency through exports and capital inflows, and domestic banks are doing well.
Challenges Facing Myanmar
Despite these positive trends, Myanmar faces several major challenges, Kay noted. These include:
Steel import restrictions and licensing issues: These have been in place since 2021.
Currency depreciation: The Myanmar kyat has devalued against the US dollar.
Power shortages and high fuel costs: These increase operational costs.
Labor shortages: This is due to emigration.
Steel Consumption and Imports
Myanmar's steel consumption is estimated at around 1.2 million tons in 2023, with about 650,000 tons being imported. This is a decline from previous years, following political instability in 2021 which led to a drop in imports. The government maintains steel import policies with an import quota estimated at 900,000 tons. The Myanmar government plans to approve $16 billion in imports for the fiscal year 2024.
Main Steel Exporters to Myanmar
China: Accounts for 50% of the total import market.
Malaysia: Primarily supplies long products and holds a 20% market share.
Thailand and Vietnam: Both mainly provide flat products, with market shares of 20% and 10% respectively.
Domestic Steel Production
The reduction in imports has been partially offset by domestic production of rebar. Small induction furnaces in Myaung Takar, north of Yangon, and industrial zones in Mandalay produce approximately 550,000 tons of rebar, angles, and channels annually. Steel imports peaked at around 2.2 million tons in 2020.
Kay Thi Lwin identified three active steel plants within the country. The Myingyan and Pin Pet steel plants are planning to resume production in 2024. Additionally, there are two operational color coating facilities in the country.
Introduction to Nam Kim Steel
Nam Kim Steel, also known as Ton Nam Kim, is a leading producer of galvanized steel in Vietnam. They provide high-quality steel products for various industries, ensuring durability and reliability. Their galvanized steel is widely used in construction and manufacturing, known for its excellent corrosion resistance and long-lasting performance. Nam Kim Steel continues to innovate and meet the demands of both domestic and international markets. For more information about our products and services, please contact us directly:
TEL/WHATSAPP: +84 965047865
EMAIL: trietlm@namkimgroup.vn
[/tintuc]
