Construction industry contributes 63% of total steel consumption in ASEAN

Source：South East Asia Iron & Steel Ins Release Date：2013-11-13 357

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Construction industry is the largest steel consuming sector in ASEAN, contributing to about 63% of total steel consumption in the region.

Within the region, Thailand's construction sector is the largest steel consuming sector, with a total volume of 7.86 million tonnes of steel used in the sector in 2011. The severe floods that hit the country in 2011 turned out to be a positive factor in boosting up construction activities in the country. There is now greater demand for the construction of flood protection system in the residential areas. Additionally, many people are also moving out from flood-risk areas, leading to increased demand for new houses.

Indonesia's construction sector consumed the second highest volume of steel in the region. A total of 6.68 million tonnes of steel was used in the sector in 2011.

In Malaysia, the government has launched several infrastructure projects to boost up the economy of the country. As a result, it is expected that the country’s construction industry in the country will have an annual growth rate of 3.7% from 2011 to 2015.

About 60% of total steel consumption in Vietnam comes from the construction sector. In 2011, a total of 5.8 million tonnes of steel were used by the sector. Growing foreign investment in the country will help to boost up the real estate sector in the future.

The Philippines' construction sector remained buoyant over the last few years, benefiting from the supporting policies instituted by the government to boost up the industry. Currently, only 300,000 new houses are being built per annum while the population is growing at around 2% per annum. Therefore, it is expected that the construction sector in the country will continue to grow in the years ahead.

Singapore, with the smallest volume of steel consumption in the region, enjoyed a healthy growth rate of 4.4% in its construction sector in 2011. A total of 2.9 million tonnes or 75% of total steel used in 2011 was consumed in the construction sector. Although Singapore is a small country, it has continued to develop construction technology to improve efficiency in construction methods in the country.

(Source: South East Asia Iron & Steel Institute)

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