South and Southeast Asia are two regions currently experiencing significant growth in steel production, which is helping drive up demand for raw steel-making materials.
Combined imports peaked at 1.9 million tonnes in December 2023. Driving demand for scrap across the region is rising steel production, with steel output in Bangladesh and Pakistan having risen by 37% and 13% over the past five years and expected to grow significantly over the few years.
Similarly, Southeast Asian steel production is going through a significant period of growth, with output having risen to 51.96 million tonnes in 2023, up from 9.08 million tonnes in 2013, while Fastmarkets forecasts significantly over the next decade. Much of the increases in steel production in the region have been led by Chinese investment in the region, and this should drive increases in steel-making raw material demand, such as scrap, alongside iron ore and coking coal.
