World Steel Association’s (WorldSteel) latest projection on Malaysia’s apparent steel consumption (ASC) indicates that the nation is on track to achieve 12.4 million MT by 2025.
The projection was established based on a collaborative effort between MISIF and WorldSteel in data modelling using locally sourced data and inputs.
The finding is significant as Malaysia’s steel demand is projected to grow at a compounded annual growth rate (CAGR) of 3.5% from 2018 to 2025–a signal that the potential of Malaysia’s steel industry may not have reached its inflection point just yet.
The key drivers behind Malaysia’s future steel industry growth will be primarily underpinned by steel consuming sectors in motor vehicles, industrial machinery, electrical equipment, and metal products manufacturing, which are expected to grow faster than steel consumption in construction by 2025.
|Apparent Steel Consumption (million MT)||9.4||12.4|
|Apparent Steel Consumption per Capita (kg)||295||361|
|Construction Growth Rate*||4.0%||1.0%|
|Motor Vehicles Growth Rate*||2.0%||0.5%|
|Industrial Machinery Growth Rate*||4.8%||4.0%|
|Electrical Equipment Growth Rate*||3.5%||3.0%|
|Metal Products Growth Rate*||4.8%||4.0%|
* WorldSteel’s modeled compounded annual growth rates in Malaysia’s steel-consuming sectors.
The projections were also made based on Malaysia’s economic performance and demographic movements in the recent past and the assumption that future performance does not deviate unexpectedly from the going trend.
More statistical insights into Malaysia’s iron and steel industry like the above can be obtained in MISIF’s industry status and outlook reports.